The head of the Euro bail out fund is in China with his begging bowl. If China says yes, it will set conditions. More important than that, China will thereafter have to be consulted over all sorts of fiscal and monetary issues. If China agrees it will significantly advance its influence as a world power, […]
At last the discussions faced up to the facts of this crisis; A currency without a finance ministry, Greece bust, shaky banks, Spain, Portugal and Ireland in difficulty and Italy tottering. This spectacular combination has spooked not only the Euro economy, but most of the Western world, where growth is stalled or stalling. So the […]
This Blog has a traditional position of pro-EU and pro federal governance for the economies of the Euro. This remains the case. What is changing is a feeling that, whilst a successful euro zone is very much in British interests overall, its own membership of the EU may not be. There are several reasons for […]
By comparison to Iraq and Afghanistan, Libya has been a triumph of arms and politics, especially for France and Britain, who led the calls for intervention. The difference between the hot headed, ill thought out and destructive adventures of Bush and Blair could not be more obvious. The universal jubilation in Libya at the death of Gaddafi […]
It is now accepted worldwide that there is a political as well as financial crisis facing the Euro zone. This crisis has global potential. At the heart of it is an acceptance of Germany’s economic authority by France. Once these two agree, the rest will fall into line. But to work, to have effect, to […]
The Bank of England Governor remains confident that inflation will fall. If he is right, well and good. Most economists agree with him, as do his colleagues on the MPC. Generally this group has been more concerned with growth than inflation, hence the reluctance to raise interest rates last year. This Blog is inclined towards […]
This blog does not care if the defence secretary is gay or not. We are not interested in the ministerial code, having taken the position that ministers are supposed to know how to behave without one. We have read the interim report from the Defence Ministry, which misses the point and is little more than […]
This is a most peculiar affair. This blog is not much exercised by the Ministerial Code. It is our view that ministers ought to know how to behave properly and if they do not know this instinctively, they should not be ministers. Setting up enquires to find out what they are up to wastes further […]
The British Prime Minister, along with almost all the rest of the world, is losing patience with the Euro leaders. Yesterday Merkel and Sarkozy met, once again, and once again agreed that something must be done, this time to save tottering European banks. But once again they could not agree on what. Those are the facts […]
Increasing the money supply when the supply shrinks sufficiently to inhibit economic activity, if properly controlled, is a good deal better than borrowing more. The Bank has done the right thing, given that we are where we are. If the Treasury comes up with a workable programme of credit easing, this will be good also. Both these measures allow the […]