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01 February 2013


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Mr. Warner rightly states that for every borrower, there is a lender. He goes on to diagnose the problem as a savings glut.

Is this not a false dichotomy? Is it not the case that we have both financial repression (e.g. in China) and over consumption? I.e. a "savings glut" and "credit binge".

Chris Downing

Political and public debate on our economic position - and indeed it is exactly the same in discussions about the UK's position in the EU - seems to be a fact free zone. When someone like Tim offers up some facts on our position, those with an agenda that can only be served through denial, always seem to make an aguement based on opinion, or phrases like" Everybody knows that...(insert personal opionion here)"

I remember Robert Heller, the business author, telling me many times that, "You can manage fact, but you you can't manage opinions, hope, and unfounded enthusiasms. You have to truly understand where you are, before you can set a course for where you want to be". I see little evidence that those in power want to share with us the truth of where we are now, or the process of how we get to where we want to be. We are navigationally becalmed.

David Hutchison

I am reading this article while in India. Reading the Indian newspapers is uplifting, especially the business section.
It is all about enterprise, not just about entitlement!
Reading the UK papers when overseas is always depressing. It has increasingly been the same old story since the end of Maggie Thatcher's premiership.
Of course the BBC with it's constant socialist comment, not to metion Europe is even worse. No wonder The East is leaving the Old World behind!


"•‘Globalisation...has helped lift hundreds out of poverty at fairly limited cost so far to Western lifestyles’: Precisely because the West has been living beyond its means, borrowing to maintain consumptions and with the expansion of the State also on borrowed money disguising the loss of jobs."

Please could you clarify your thinkin here? It is not clear whether you think globalisation a Bad thing per se or whether you think globalisation leads to Western job losses because of current labour market policies in the West or something else.


Terry - ca I do a short email interview for my Forbes column? Can't find a contact here for you.

Brian Coxon

Wait until interest rates do finally return to normal then watch the number of repossessions soar.


I've also taken the opportunity to comment on Jeremy Warner's surprisingly disappointing response to Dr Morgan's report over at 'Moraymint Chatter' ...


Geoffrey Ashby

AS usual spot on comments.

A conspiracy to try to keep people in a spending mood plus Politicians have no solution to the UK intractable bankruptcy. - more alarmingly, nor can the rest of us!
I anticipate Carney going for inflation but increased wages will be hard to generate with unemployment and competition from immigrants on peoples minds.
It amazes me how the myth of Mortgages being hard to get is increasingly accepted when (as oer the comments) the problem is that overpriced Property prices and contingent Bank losses (and their further insolvency) are the problem.
Newspapers only sell good news is another problem.


I loved Accounting for Growth. Can you recommend any more forensic accounting books?


David Lilley

In reply to the first comment stating that to every borrower there is a lender.

This would be just fine if it were true. It was the case with the origins of the building societies but it is not the case with frctionl reserve lending, mortgage backed securities and QE.

Shane Latham

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