Monday, 30 March 2009

Looks like Brown should have gone to Europe

While jet setting in South America, a Berlin magazine “obtained” and published the draft agreement Brown hopes to secure at the G20. It stated that he wanted a “$2 trillion” global fiscal stimulus. The Czech Republic, France and Spain's leaders have joined together to echo the comment, nein Herr Brown.

I'm no economist but do think they have a valid point being cautious and stopping to look at the cause of the problem. In Britain financial services alone make up almost a third our GDP. Good business is spreading the risk. Yet we can't compete globally with our exports industry and we've got so few farms left now, we're not even self sufficient.

That leaves the city (ironically) to be the one to get us back on track. Bankers can't make the money needed while being handcuffed, at the same time no regulation is like putting foxes in charge of the hen house. A balance needs to be struck with protecting people, regulating credit, spreading the risk by investing in other industries and I think we can all agree getting a better monitoring service.

Is there a problem more fundamental though, as how can you restore the economy when people don't have confidence in it? People will hold on to their money while they believe there is no light at the end of the tunnel, survival instincts will just kick in. Brown is part of that problem, he is too synonymous with the cause for people to believe he can fix it. 30 years after James Callaghan's vote of no confidence, is it time for someone in parliament to act on what people think.

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