Opinion – Osborne and the Stooges – Paul Krugman – NYTimes.com – John Gelmini


English: George Osborne MP, pictured speaking ...

English: George Osborne MP, pictured speaking on the launch of the Conservative Party manifesto for the 2009 European Parliament elections, at Keele University. (805×1207 px, 283,711 bytes) (Photo credit: Wikipedia)

I thank Dr Alf for sharing this article.

George Osborne is being portrayed as a hero because the UK is supposedly recovering.

It is recovering because there is a pre election boom based on housing and consumer spending.

Most of the public can afford to go on holiday, eat the odd Indian meal and buy cheap beer.

So George Osborne can take credit for that and for being more right than Miliband who is someone they dislike.

When this boom ends and the “frogs start to be boiled again”, George Osborne will suddenly become less popular.

We only have to wait until the 15th of May 2015, just 8.5 months from today.

John Gelmini

mainly macro: Eurozone delusions-Simon Wren Lewis

map of Europe; blue: Eurozone, green: monetary...

map of Europe; blue: Eurozone, green: monetary agreement with the Union, purple: Euro as currency (outside of Eurozone), orange: ERM II, lightgreen: currency pegged to Euro, red: members of Union outside of Eurozone or ERM II; language: Hungarian (Photo credit: Wikipedia)

This is an outstanding, must-read article from top Oxford economist, Simon-Wren Lewis (SRL). Check it out!

via mainly macro: Eurozone delusions.

Wren-Lewis argues that the Eurozone is in major crisis because of ineffective monetary policy not because of Southern European economies, like Greece. SRL blames Germany, who is destabilizing Europe – either through naivety or deliberate greed on Germany’s part.

The solution is suspending the Stability and Growth Pact (SGP), and preferably by a coordinated fiscal stimulus. Consensions to France is not likely to be enough.

Whilst SWL blames Germany for causing the crisis, he equally rounds on Europe’s leaders for not standing up to Germany.



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