31/07/2012

Of La-La Land Economics And Silly Stats And Credit Ratings


George Osborne
La-La Land Economics by Ben Delicious
Well, George is at it again. Doing la-la economics.
via stirringtroubleinternationally.com

Welcome to ‘Stirring Trouble‘ today’s audio Feed is from one of our authors in London. The article is about the real world of economics and the pretty dismal shape its in at the moment and the solutions on offer these days to improve credit ratings.
Author Ben Delicious takes a good look at the and revives the story with the news in from London.
Ben writes:
The fine men and women from the credit agencies, who have managed to miss practically all calamities in the past including the biggie, the financial meltdown of 2008 even though the writing was on the wall for years, have now flexed their muscles again and have given their verdict on Britain’s credit rating, keeping it a cool AAA. Despite, I hasten to add, the small matter of the British economy having one of the fiercest recessions in recent memory.
Yes, the lads and lasses from Standard & Poor ratings agency have confirmed their authority and sharp instincts by confirming Britain’s triple ‘A’ credit rating, opening all sorts of mouthwatering possibilities for the government to borrow even more money cheaply while claiming that it is successfully battling the budget deficit and the national debt generally. (So that you know, the UK national debt officially stands at just over £1 trillion, but with all the hidden extras like pension black holes and liabilities under private finance initiatives is closer to £5 trillion.)
Although it is still unclear how exactly SP came to its conclusion about Britain’s strong financial worthiness Chancellor George Osborne, who is facing calls to step down for his handling of the economy, has been quick to do a celebratory song and dance, claiming among other things that the world still has confidence in Britain. George provided some very strange lyrics for his songs though saying that the budget deficit has fallen by a quarter and that employment was rising and more than 800,000 new jobs were created, without mentioning how many jobs have folded and how many people are without work. He also sang that Britain is now exporting more to the world than is the rest of Europe. Yep, that is how it is in la-la land economics: Britain is going through a recession and still manages to outstrip all of Europe, including the mighty Germany, when it comes to exports. (Men in white coats, you better keep a close eye on George.)
The great thing about la-la land economics is that you can make any sorts of statements you want and quote any sorts of figures you desire, as long as you manage to keep a straight face and not burst out laughing.
You can read the full article simply by clicking the image, this will take you to Stirring Trouble Internationally.
Filed Under: CREDIT RATING, ECONOMICS, STANDARD AND POOR'S

Post a Comment

Google+ Followers