Sunday, December 21, 2008

Oh dear! Browns own words give him a Pounding!!

"A weak currency is the sign of a weak economy, which is the sign of a weak government"
Gordon Brown, 1992

So what have we seen this week?
Here's the Daily Telegraph:

The pound gained one cent against the single currency, but was down 4pc – or 4.5 cents – over the week as a whole.

And:
Sterling also finished the week at its lowest-ever level against a basket of currencies.

Why?
The pound has been hammered over fears that the UK economy will be hit particularly hard by recession, and by the expectation that interest rates will be lower in the UK than in Europe.

Now, Sterling's slide is the worst since 1931 and government finances are the worst in years, more so if banking debts from part-nationalisations are included, which is further driving the pound down, as The Guardian notes. Record net borrowing is predicted.

So it is certain Brown and ZaNuLiarbore must be very weak, judging by Brown's own analysys.
Yet, the UK Tories are only ten points or so ahead in the polls, despite such a financial and economic cataclysm engulfing the UK economy, one that seems far worse than the recession of the early 1980s.

But what did Gordon Brown say yesterday?
GORDON Brown insisted yesterday that Britain would haul itself out of the credit crunch to become a “beacon of hope” for the world.

I know it's Christmas, and there's enough doom and gloom already, but such hubris, such arrogance, reminds me of the lies and out of touch with reality statements we used to see from Uncle Helen and Liarbour in their final year of office.
And how did the Kiwi dollar do then?

Oh, it slid too, just as Iain Dale notes a tumbling pound here. Now I see Sterling sliding against our own Pacific Peso. Thus, I am sure, indeed I hope, Gordon Brown and ZaNuLiarbore's days are equally numbered as Uncle Helen's were in 2008.

8 comments:

ISeeRed said...

What does the "Za" mean in "ZaNuLiarbore"?

ISeeRed said...

Oh, the Tories seem to suffer from the same affliction as National: Terminal Timidness.

KG said...

A play on "ZANU PF"

Anonymous said...

More importantly this piece is yet further evidence that the current economic horror show is no "ordinary" recession.

Whaleoil's parallel piece concerning NZ homeowners' negative equity confirms that the general air of local smugness is unjustified.

The Bad Moon has risen.

Anonymous said...

In UK houses have negative equity.

In NZ the government has negative equity

In Iceland the whole country has negative equity


Unfortunately NZ is jumping head first down exactly the same hole as Iceland.

Harpoon said...

FFM, what did you say sixteen years ago that, if known today, might make you look silly?

Clunking Fist said...

This is where the Liabour persons lack of understanding of economics comes home to roost.
They think they RUN the economy. They fail to undestand that the gummint and its finances are only PART of the economy. They fail to understand that gummint is merely the part that REDISTRIBUTES wealth, that it does not CREATE wealth.

Anonymous said...

Clunking Fist - if government only Redistributed Wealth that would not be so bad

in fact, socialism totally destroys wealth


that's why they should be wiped out. plain and simple.