[Re: The global economy sinks under its debts as the real cost of energy rises, yesterday]
Tim Morgan’s article strikes at the real issue facing the global economy and all of us. Perpetual growth is almost certainly over. The debt problem of the credit crisis has not gone away, it has simply been transferred from the private sector to governments and central banks. It represents a huge deferred cost to the next generation, which will ultimately lower living standards and create huge social pressures for the future. There may need to be a massive reallocation of wealth, and this can likely only occur through fiscal policy. Either there are still significant debt defaults to come, or governments will have to raid the wealth of the few to reduce the debts of the many.
[Re: Would turning the BBC into a mutual company succeed in reforming the public broadcaster?, Wednesday]
Unfortunately, the licence fee payer is unable to apply the same sanction as other consumers – withdrawing payment – if unsatisfied with the service. As long as the BBC is funded by what is little more than an unsolicited demand notice, it will remain distant from those forced to pay for it.
BEST OF TWITTER
Today, 124 countries count China as their largest trade partner compared to just 76 for the US.
Car manufacturing tops 1m year-to-date. Rolling 12 month output hits 1.5m. Fantastic news.
Over 5 to 10 years, public expects 4 per cent, not 2 per cent inflation. Food for thought at the Bank.
The NSA Merkel phone tapping episode will make EU-US trade talks so much easier...