Global recession and Argentina

[tangobob]

I think what Argentina went through was because of it's over reliance on the dollar. This forced prices and wages up to an unsustainable level. No country should ever rely on another to set the level of it's currency. That is the road to disaster.
The reason that the UK economy stays strong is the very fact that it has stayed out of the Euro.
As for world depression, I think the markets have learned much since the 1930s and whilst we may have many dips and peaks another depression of that level is unlikely to say the least.

 

[bigbadwolf]

I think what Argentina went through was because of it's over reliance on the dollar. This forced prices and wages up to an unsustainable level. No country should ever rely on another to set the level of it's currency. That is the road to disaster.

That was part of it. The other part was reducing taxes and privatising sectors of the economy (both on ideological grounds and to raise money to make up deficits resulting from lower taxes on the rich). This was part of a neoliberal program that was hailed at the time as the very model of success by Washington and the Western media. Menem could do no wrong. Until it started to unravel. Sort of like the US today.

The reason that the UK economy stays strong is the very fact that it has stayed out of the Euro.

It's not strong. The British economy is more dependant than ever on London's role as a financial and services hub, which makes Britain extremely vulnerable to the present recession in the USA (and indeed to anything that adversely affects global financial flows). And like the USA, Britain has been racking up unsustainable current account deficits. The forecast is that the pound and the euro will be at par within a couple of years. And if high street sales are anything to go by, I expect the US recession to hit British shores with almost the same force. Expect unemployment numbers and foreclosures to rise steadily over the next couple of years. British "prosperity" wasn't built on sound foundations under New Labour.

As for world depression, I think the markets have learned much since the 1930s and whilst we may have many dips and peaks another depression of that level is unlikely to say the least.

Have learnt precisely what?

 

[tangobob]

Well bbwolf we will just have to disagree. I lived through the years when Britain was the poor man of Europe, and now we have an economy that allows me (working class) to buy property in Argentina. I have seen sustained growth in the economy since the demise of THAT woman, and unless we have a return to boom and bust Toryism, I believe it will continue.
As you are obviously the pessimist and I am obviously an optimist we shall just have to wait and see.

 

[BartyBoy]

I think you will find THAT woman dragged Britain into the 20th Century. Up until that point the unions were controlling the country.
Her great policys helped Britain to become one of the great countries, it wasn't until Blair came along and tried to make politics cool that it went wrong.
I can't wait until the next election for Cameron to set us on the right path again.

 

[tangobob]

I think you will find THAT woman dragged Britain into the 20th Century. Up until that point the unions were controlling the country.
Actually she broke only two Unions, she took the negotiating rights of the vast majority, caused untold damage by bringing the law into industrial relations, caused Britain to go from an energy exporter to an energy importer, and sold off the family jewels buy turning us from a manufacturing country into a servuces agency.
And finally goaded the Argentines into a war that niether the people of Britain or Argentina wanted. Best of luck with Cameron I shall hopefully be out of it, with the wealth that I have achieved under The Blair government.

 

[bigbadwolf]

I think you will find THAT woman dragged Britain into the 20th Century. Up until that point the unions were controlling the country.

"That woman" destroyed 20% of Britain's manufacturing capability in three years flat (1979-1982), by following the nostrums of that crackpot, Milton Friedman, via nincompoops like Keith Joseph. Thatcher did a quiet U-turn in 1982. For more on this, take a look at:
http://politics.guardian.co.uk/women/comment/0,,1212392,00.html

Her great policys [sic] helped Britain to become one of the great countries, it wasn't until Blair came along and tried to make politics cool that it went wrong.

You've got to be kidding. Blair was Thatcher's most ardent acolyte. "New Labour" means fork-tongued nonsense.

I can't wait until the next election for Cameron to set us on the right path again.

What path would that be? Cameron flip-flops more than John Kerry. I don't think he has ever had an original idea in his head. I concede he does look saucy -- a selling point with the electorate.

 

[tangobob]

If I have a talent for anything it seems to sending everyone off topic. Well never mind at least it gets entertaining.

 

[TatanBsAs]

http://youtube.com/watch?v=D6Q14HOBThM
I suggest everybody to watch this interesting 60 minutes interview.

 

[bigbadwolf]

I shall hopefully be out of it, with the wealth that I have achieved under The Blair government.

Good idea. Take the money and run. Britain's going to go through a bad patch, at least for a while.
The Tories need a leader like Alan B'stard (has anyone here ever seen that '80s political satire, with Rik Mayall playing the utterly corrupt "New Right" Tory MP Alan B'stard?).

 

[tangobob]

The Tories need a leader like Alan B'stard (has anyone here ever seen that '80s political satire, with Rik Mayall playing the utterly corrupt "New Right" Tory MP Alan B'stard?).
Now that is one thing that would make me vote Tory