Well we should not be surprised, it is after all Jeremy Warner commenting in the Telegraph, but it’s still shocking that not long into his article we get into the underlying praise for the banks and the disgust at the general public for their over indebtedness. Once again the finger of blame points outwards rather than towards the cause of the global financial meltdown. And so we read that ‘progress has been made on household deleveraging’ where indebtedness as a proportion of income has fallen from 166% to 148%. Oh well done everyone! And apparently the banks are having to deleverage as well, having to sell off assets because of the absence of ‘cheap funding.’ Oh the irony. You mean the absence of other banks wishing to lend to them. That sounds familiar. So very 2007…

And then of course we hear the usual speak of the lobbyists and their puppets, that ‘much more onerous capital and liquidity requirements’ are making life even harder for the poor bankers. That’s right, let’s just leave things exactly as they were, so you can do it all again. There is a reason why history repeats itself and generally it’s down to people like Jeremy, the ones that turn a blind eye. I trust he feels he is one of the ones likely to weather the next storm rather well. He’ll probably be working for a PR company by then. Many of the PR hating journos I once knew are all PRs now.

He goes on. Something about comparing us to the US and that they are ‘typically about six months ahead of us in their economic cycle.’ More hope than fact given that they seem to be doing rather well post financial collapse. He then contradicts that assumption saying that it might be a bounce in the US because the cuts haven’t bitten over there. They haven’t bitten here Jeremy!

Might be of course that they’re not going to bite in the US in the way there are going to bite here because their economic policy is not being directed by a public school prefect who knows nothing about economics. I don’t actually know what Osborne has done since but seriously, think 18 yr old school prefect being given the keys to a formula 1 car. Now imagine the consequences.

He then goes on to talk about there being somewhere ‘pent up’ demand from business and then from invisible consumers. Never mind that this completely misunderstands the nature of the pressure on household income, the drivers of inflation, the new economic paradox. As he concludes, sometimes ‘it’s best just to stop worrying about the future and get on with it.’ Yeah, best follow your own advice Jeremy and please shut up!

The new economic paradox? Progress, wealth, expansion, success, proliferation, the very things that are signs of a successful economic growth and civilization are the exact things that, where there are limited or finite rescources, will make it fail. Success = failure. Therefore time for change.

The Telegraph, “Why the economy is starting to look up.” April 2012

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