Comments on: YouGov – Labour boosted by economic crisis

By: Joe James B

Joe James B — Tue, 28 Oct 2008 00:50:35 +0000

continuing some of the points about Lamont in the recession of 1990-92….

Lamont says he realised he would be moved the day before, in May 1993.
He went so some event – I think Portillo’s birthday at a Spanish place where lots of politicians were attending, and it struck him that Major, Richard Ryder (chief whip), Norman Fowler (chairman) hadn’t turned up, and was suspicious.

By: K Robinson

K Robinson — Tue, 28 Oct 2008 00:04:46 +0000

Labour is to raise funds through debt. This money must come from China, India and the Arab counries with oil. These countries, through our outsourcing, investing and purchasing products from them, have more of our currency than we have. Thus, they will be able to afford to purchase our debt which we can then reinvest to boost our economies. Eventually, when these debts are called in, we will default, and they will end up owning us. The next recession, due when t the debts are called, will make this one look very mild. Of course the government could raise taxes to pay the debts, but that wouldnt matter to Labour, they wont be in government and it is a poison pill for whoever is.

By: john t t

john t t — Fri, 17 Oct 2008 12:55:29 +0000

JJB

Very clear analysis, thanks (though giving the BofE a remit on house price inflation controls would face enormous geographical problems)

I think all sites like this (non-partisan, tolerant, humorous etc) can be enlivened by a Lamont anecdote. My point about him was simply that he was regarded as a frightened rabbit in the financial crisis of the ERM fiasco.

There is no great “free-market” solution being offered to counter the almost socialistic proposals of Brown. Lamont said “we might have better followed the US” – the operative word being “might” , reminiscent of, well, “erm…”

By: Joe James B

Joe James B — Fri, 17 Oct 2008 10:32:38 +0000

Although I did read a very funny article by
Giles Brandreth where he said he visited Lamont in the Treasury one day at the end of 1992 and stood by the window admiring the view saying …
“I just can’t believe it. I’m an MP. I’m standing here in
the Treasury. And you’re Chancellor of the Exchequer.”

Lamont looked daggers.

By: Joe James B

Joe James B — Fri, 17 Oct 2008 10:20:09 +0000

I’m not quite sure what John’s criticism of Norman Lamont is, although I don’t agree with him on everything.
He didn’t create the bubble in 1987-89 as he wasn’t senior enough.
The government was still repaying debt and had a small PSBR under late Thatcher/Major/Lamont in 1990-91 – about the equivalent point to where we are now in 2008 – with the finances in a much worse mess already.

Major did order the Treasury boost spending quite a bit in 1991, partly for the NHS.

The ERM was a flawed mechanism being used for political union but it did force us to drive inflation down properly for once – in Britain – and we were kicked out at the right time.
We should have got out before the Black Wednesday itself, which was hugely humiliating, although Lamont says he wanted to get out quickly in the morning.

Afterwards, Lamont and Major put in place a sensible policy of inflation targeting which has served us well until now, effectively locked in by Labour with the Bank, but housing inflation should have been part of the remit.