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Germany to Gordon Brown: you are an idiot

Germany’s finance minister has gone on the record as saying that Britain’s rush into ever greater debt to try to halt a recession is foolish, even “depressing”.

Crikey. It makes me wonder whether Germany, mindful of what happened in the hyper-inflation of the 1920s, is worried that sooner or later, the vast amounts of money being hurled at the economies in the West, such as in Britain, will produce a sharp rise in inflation and that ever-higher borrowing will only prolong, but not halt, the current pain.

Anyway, this is bound to be seized upon by the Tories. It will be interesting to see if they do so.

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34 comments to Germany to Gordon Brown: you are an idiot

  • The system will soon collapse into a black mass and people will understand why hitler came to power.

  • Ian B

    Part of the mythologising that gave rise to Nazi Germany was the promotion of the idea that the runaway inflation had been caused not be money printing but by evil speculation and deliberate economic sabotage by foreigners, and Jews especially.

  • criminal

    Its clear whats going to happen.

    The ressession will bite and bite hard.

    Government borrowing will send Inflation through the roof.

    The Price of Gold will rise.

    The Gold Cartel setup by the US and Europe (-Britian) will by Obama be disbanded to pay for his spending spree.

    The true cost of Browns huge error in the manor sold UKs gold reserves will be revealed.

    The Question is how do we profit from this?

    There is a lot of activity currently on the LSE shorting UK government Bonds, but im wondering if there is a longer term look available.

  • Anyway, this is bound to be seized upon by the Tories

    Really? That assumes the collective brain cell of the Tory party is not focused on something else. And frankly the Stupid Party has no more idea of genuinely shrinking state expenditure than the Evil Party.

  • Ian B

    They’re both the Evil Party.

  • Andrew Duffin

    Fred Dawes – I call Godwin!

  • Andrew Duffin

    Ian B – seconded. There’s a close parallel between that and El Gordo’s constant banging on about greedy bankers and the influence of US policy.

    Let us hope that his attempts to deflect blame are unsuccessful.

    Looking at the opinion polls, I am not all that optimistic, but of course that also reflects the totally pathetic performance of the so-called Opposition.

  • Gordon

    And who in whatever party will dare state that the vast bulk of the rise in unemployment should be in the state sector?

  • But, you stupid Krauts, Flash Gordon saved the World!

    I third Ian B.

    Gordon – precisely. skoolznhospitalz! Think of the children! We couldn’t possibly sack our five-a-day co-ordinators or- God forbid – the scoial-workers – kids would get tortured to death in Haringey if we did that.

    Think of the children! Yeah, think of them and then run-up a fucking surreally enormous debt for them to pay for ever and ever…

  • Kevin B

    When I was flicking through the news channels this morning, Sky were majoring on this and interviewing Osbourne so I guess the Tories have something to say.

    I didn’t listen since politician speak gives me heartburn as well as being bad for my blood pressure.

    The story didn’t feature on the BBC News 24 ticker at all since there was a suicide attack in Kirkuk and a car had crashed into a takeaway. Oh and Harry got accepted for helicopter pilot training.

  • lucklucky

    Mr.Perry said it all.

  • lucklucky

    Just one thing, this phrase by German Minister is silly:

    “Are you really going to buy a DVD player because it now costs £39.10 instead of £39.90?”

    It is the comulative lowering prices that make work. 10 products with less .8 puts 8.0 in our pockets.

  • “It is the comulative lowering prices that make work. 10 products with less .8 puts 8.0 in our pockets.”

    No,haven’t bought anything with VAT that wasn’t essential or compulsory.Biggest item outside the utility bills is food,none of that is getting cheaper.
    Sorry Crash Gordon is the worst Prime Minister since Jim Callahan,Labour is working its old magic once more.

  • James Halifax

    Hmm. I wonder if there isn’t more to this story than meets the eye.

  • the last toryboy

    I must’ve been on this site too long, as I’m getting cynical. The Tories won’t bring this up, they are just too dozy. Maybe on Redwoods blog, but you think Osborne will do it?

    He probably doesn’t even know where Germany is.

  • lucklucky

    “No,haven’t bought anything with VAT that wasn’t essential or compulsory.Biggest item outside the utility bills is food,none of that is getting cheaper.”

    Since when you are the economy?
    Even if the money is staying in companies that is money in economy.

  • And today we had the leader of the opposition in Germany supporting the German government in criticising Brown – absolutely hilarious and it heaps shame on the profligate and irresponsible nature of everything Brown has said and done over recent months.

    http://www.lettersfromatory.com

  • “Since when you are the economy?”

    We are all the economy dear lady and the economy is fucked.
    After Christmas,look around you at the devastation wrought by Gordon the Moron. Quick tip,the holiday industry will see its biggest down turn in early 2009.

  • JKA

    Peer Steinbrick some Finance Minister. The correct price for the DVD player would be £39.05 after the VAT reduction!
    What hope for the German budget
    JKA
    (Link)

  • And today we had the leader of the opposition in Germany …

    Are you sure that was the leader of the opposition? I have read about statements from a Social Democrat and a Christian Democrat (Conservative). The Social Democrats and the ‘Conservatives’ are in a coalition government at the moment. The closest thing to an opposition Germany has is the Greens or the Communists.

  • JKA

    Peer Steinbrick some Finance Minister. The correct price for the DVD player would be £39.05 after the VAT reduction!
    What hope for the German budget
    JKA
    (Link)

  • Paul Marks

    At first glance this looked like a debate between whether high (insanely high) government spending should be financed by taxation (the German position) or borrowing (the British position).

    This debate left me indifferent. However, when one looks closer it is not just “tax cuts” (such as the tempory cut in Sales Tax in Britain) that the German ministers oppose – it also the RISE IN GOVERNMENT SPENDING.

    Whilst German government spending is very high – British government spending is now even higher.

    I agree with the above comments that this level of government spending can not be sustained.

    The British economy is doomed – not to strong a way to put it.

    As for Germany, it has its own problems.

    Although it also has its own strengths.

    For example, the resistance to “progressive” and egalitarian ideas in education in Bavaria is impressive. I am an opponent of government schooling – but if they have to be government schools, let them be like the ones in Bavaria.

    Perhaps if I had gone to a Bavarian school (even one of the “lower” schools) I would be able to spell and have some idea what “grammar” is.

    Also many Germans are taught how things work and how to make things.

    All British youngsters are taught is how to be “public sector” administrators or media people.

    The British are taught how to consume – not how to create.

  • Paul Marks

    On monetary (as opposed to fiscal) policy:

    The Germans are locked into the Euro – which has followed a more expansionary policy that they would have wished.

    However, American policy (endless bailouts – mostly financed by the Federal Reserve system) is surely worse than that followed by the Euro Central Bank (I say “surely”, rather than quoting stats, because, as Ron Paul noted some years ago, the American government does not publish M3 expansion numbers).

    As for British policy:

    The Monetary policy of the Bank of England and the fiscal policy of the Treasury, are insane.

  • “Since when you are the economy?”

    We are all the economy cherub.

    “Even if the money is staying in companies that is money in economy.”

    But the whole idea was to get us spending again,not give companies a nice little windfall.

    It could be argued that giving the money to the government is keeping it in the economy.Now those bozos really do know how to spend.

  • Eric

    I say “surely”, rather than quoting stats, because, as Ron Paul noted some years ago, the American government does not publish M3 expansion numbers.

    You don’t need to see M3 to be nervous. The M1 numbers are huge. Staggering. When US banks start lending against that base money we’ll see dollar inflation like we’ve never seen.

  • lucklucky

    “But the whole idea was to get us spending again,not give companies a nice little windfall.

    It could be argued that giving the money to the government is keeping it in the economy.Now those bozos really do know how to spend.”

    Oh get it, so do you prefer to have money in State than in companies and or people? I suppose you are one of those apparatchiks…

  • Paul Marks

    Giving the banks the money to “lend” was indeed the point of the TARP bailout (and others) – and it is exactly what should NOT be done.

    Demand economics (or “go shopping” economics) is bad enough – without the whole thing being based on credit bubble debt pyramids.

    At least the ex head of NASDAQ (spelling alert) admits he is a crook (a fifty billion Dollar crook – quite small really). The fractional reserve bankers (and the government/Bank of Enland which pushes their activities) hide behind the formally “legal” nature of their antics.

  • Eric

    Personally, I suspect the banks haven’t been lending because they can’t. They have so many worthless assets to write down they’re already far below reserve requirements. The only thing that’s allowed them put on a brave face is the suspension of mark-to-market requirements and the looser rules for L3 assets.

  • So Gordon Brown, instead of leading some sort of vendetta against Fred Goodwin in which to hide your own failings, please start doing something to sort out your own mess and help the UK out of the depression which you created.

    And, in this time of uncertainty, people are rightly asking politicians: what’s your plan?

  • Excuse me. There?s so much comedy on television. Does that cause comedy in the streets? Help me! It has to find sites on the: drug addiction help. I found only this – residential drug treatment center. zemore; nina mulia; yu ye; guilherme borges. Short term alcohol abuse effects alcohol, specifically ethanol, is a potent central nervous. Waiting for a reply :-), Chay from Greece.

  • Hoy esto se mira que captura, universal. Tan pronto como es posible sin duda discutir con este motivo pero que no hables mí gozo.(Link).

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