Ken Clarke: ‘unsustainable’ debt and deficit will suck UK into low growth trap – Telegraph

I agree with former UK Chancellor, Ken Clarke, sharing his views in South America and reported in the Telegraph. What about you?

via Ken Clarke: ‘unsustainable’ debt and deficit will suck UK into low growth trap – Telegraph.

I tend to relate more easily to Ken Clarke than current Chancellor, George Osborne, whose argument is often laced more with political dogma than defensible economics.

So I favor a small state but also public investment to create jobs. Most importantly I strongly advocate an industry strategy and a skills improvement plan, along with serious measures to increase exports. There’s also a need for a much wider national risk register, with mitigating actions – it should be published quarterly as part of open government (unless there are national security issues). The number one economic risk is probably the UK banks.

Let me ask two open questions:

  1. Why do you think that the banks are the number 1 risk in the UK?
  2. How should government mitigate the risk of the UK banks?

Thoughts?

One response

  1. Dr Alf makes interesting points.

    The banks and those who control them are the biggest risk to the UK economy and the global economy because they are run imprudently with the risks of default and theft placed firmly on the backs of taxpayers. Also those like HSBC are, in effect, the launderers of much of the world’s drug money as they have been since the days of the British East India Company and the original Tai Pans, the Mattheison family.

    These risks cannot be mitigated because the City of London,a seperate, distinct semi-autonomous fiefdom in the UK controls the banks.

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