Top Blogs Revisited -An in Depth Look at Deleveragings – Ray Dalio – Bridgewater

This is an excellent article looking at good, bad and ugly deleveraging experiences over the last century. It is written by Ray Dalio, billionaire,  head of the World’s largest hedge fund operator, Bridewater Associates. I STRONGLY RECOMMEND this article for a deeper understanding of the deleveraging debate underpinning the argument of the austerian politicians in the  US, the UK and Germany.

Open this link to read the article which is in PDF format.

The article is quite long but easy to read with lots of interesting colored charts.

Based on historic precedent, I think that there is hard evidence that austerity has been too severe in many countries since the financial collapse in 2008, especially in the UK and Southern Europe.

Good national economic house-keeping as advocated by Germany makes excellent sense but as this article explains there are different rates of pain associated with different deleveraging strategies; also and most critically because of the Euro and the European Commission, Southern European countries do not have a full range of economic policy tools, both in terms of fiscal and monetary policy.

Any thoughts?

(Originally published in this blog, July 14, 2013)

Opinion – MPs are set for an autumn of chaos & poison – The Guardian/Observer

Here’s an outstanding insight from Observer Policy Editor, Michael Savage. It’s worth dwelling on the headline citing ‘chaos‘ and ‘poison‘. Of course, the focus of the chaos depends on your politics. For me, there’s a terrible smell in British politics for two reasons. Firstly, the ‘Corbyn Experiment’ has failed, evidenced by institutional anti-Semitism and Brexit chaos. Secondly, Theresa May’s leadership has brought the UK to its knees. Both Corbyn and May must go and quickly, ushering in younger, unblemished leaders. Alternatively, politicians must earn their pay and break away forming a new political centre. Let’s face, there’s a high risk of a very hard Brexit, and the poison and chaos of either a Far-Left or a Far-Right government in the UK. Thoughts?