Politicians don't want their electorates (not just in the UK, but over the whole of the western world) to realise just how badly their governments have messed up - and how much the electorates themselves have messed up by continuing to borrow increasingly large sums without the underlying income to ever pay it back. There may be a few individuals like me who have no debt, but we are in a vanishingly-small minority, unfortunately. So now the cry is to reduce interest rates to encourage more borrowing. I ask you, just how crazy is this?
I came across these two videos in the AngloAustria blog, they are interviews with a guy called Peter Schiff on the Bloomberg channel just a few days ago. Frankly I can't fault the man's logic at all; the man is not an 'alarmist', even if what he says is exceedingly alarming. Unfortunately my view is that he is simply telling it like it is. Pain cannot be put off forever; I think people need to realise that the sooner the debt-mountain cancer is lanced, the quicker economies can be rebuilt on a sounder basis - and trying to borrow our way out of trouble to put off the evil day is only going to prolong the agony for far longer, even if in the short term it seems to provide some relief. It's a lot like drug addiction; the really hard part is weaning people off the drug. The harsh truth is that real living standards in the western world have got to fall dramatically for most people for a while and that some won't make it through to the other side; naturally the politician who said such a thing would have no chance of being elected, because most voters are hopelessly addicted to the debt and borrowing drug. OK, now that I've cheered everybody up, please watch these videos:
Who amongst our politicians has the courage to get back to economic reality? Obviously not Brown, and unfortunately not Cameron, either. And, frankly, who can blame them with the myopia that afflicts most voters - although I believe strongly that if one of them stood up and told the truth for once they would be surprised how many people would be receptive to it.