Saturday, 16 June 2012

Gordon Brown has just gone up in my estimation

Not by much, I quickly add....

However, his recent article on the Reuters website is remarkable. It sets out, in the starkest terms, the dangers the world economy faces. Click here to read it. Forget about the man, think about what he is saying.

Here are a few of my favourite quotes:

Eurozone leadership

The standard, but often empty, language of summit communiqu├ęs will simply not do when the euro area is finally approaching its own day of reckoning.


Whichever way the Greeks vote in Sunday’s election, a chaotic exit from the euro is becoming more likely: Its tax revenues are collapsing, not rising as promised.


(T)he Spanish bank recap cannot work and the euro area is being pushed inexorably toward its moment of truth and the fundamental weakness at the heart of the original design of the euro – that no bank bailout can resolve.

Financing difficulties in the Eurozone banking system

Yet Europe’s financial sector has an even bigger problem: their banks still have 24 trillion euros of outstanding loans, as against America’s $14 trillion (11 trillion euros), and because of their size, they depend on wholesale financing, which is starting to dry up.

Eurozone solutions to the crisis

And every time now that the euro area attempts a new set of well-meaning half-measures – further recaps, bank deposit guarantees and the latest “solution,” a banking union – without facing up to the fundamental issue, it makes the endgame even more painful.


Stevie b. said...

"Gordon Brown has just gone up in my estimation"

but, he couldn't have gone any further down, could he? For me, he's still flat-lining along his own very Brown bottom...

Electro-Kevin said...


Where is it to come from ? The emerging economies ?

Sure. Demand will always exist. But what we seem to be forgetting is that resources are drying up too.


Could you possibly do an analysis of the London property market and where it might be going ?

davidb said...

He is a fu@@ing idiot, always was. Anything he says or writes must be treated with caution, and is probably best just ignored.

dearieme said...

"he fundamental issue" is too much bad debt. This debt must be dealt with by being paid down or defaulted upon.

This is just the opposite of Brown's policies over the years of running the economy to build up debt and then, dear God, lumbering the taxpayer with it.