Magna Carta links

Magna Carta links
At the Library of Congress in Washington

Wednesday, 29 October 2008

JM Keynes

Is it possible that we have been Keynsian all along?

If we look back over the years of uninterupted economic growth, we see beyond question that it was funded by borrowing. Much of that borrowing has resulted in bad debts to the lenders, many of whom have been bailed out; by whom? Isn't this public borrowing by another name?

The Guardian (28 October 2008) headline 3 trillion lost, makes the inocent look round for a very large hole. Where has it gone? Indeed where did it come from in the first place? Pension schemes are a major source of investment and a great many of these are now money purchase. That is a frightening part of the answer. Looking back though at the way in which the ftse has moved, the story is, if anything, more chilling. There is a shifting sea of value, but it would seem a sea with a plug hole with plug removed.

No comments: