Posted on 02/12/2009 5:31:17 AM PST by TigerLikesRooster
Downturn worst for 100 years, says Ed Balls
Ed Balls is a former Chief Secretary to the Treasury and was even tipped as a possible Chancellor
Elizabeth Judge
The economic downturn is so severe that it would surpass even the Great Depression of the 1930s, Ed Balls said yesterday.
In an extradorinary admission about the extent of the financial crisis, the Schools Secretary and a close ally of the Prime Minister, declared that the downturn was the most serious global recession for "over 100 years".
He said: "The reality is that this is becoming the most serious global recession for, I'm sure, over 100 years as it will turn out."
He added: "I think this is a financial crisis more extreme and more serious than that of the 1930s."
The comments, which were made at a conference at the weekend, but emerged only last night, were immediately played down by Mr Balls's office.
But they were seized on by the Conservatives as a "worrying admission."
George Osborne, the Shadow Chancellor, said that the comments surpassed Gordon Brown's assessment of the severity of the crisis.
The Government is forecasting that the economy will recover by the second half of the year.
(Excerpt) Read more at business.timesonline.co.uk ...
Big boys are giving up on spin. On the other hand, it is understandable for British labor politicians to 'lose it' because the situation in UK is beyond despair.
Ping!
This just seems like hyperbole. Who needs that?
It means the UK is bankrupt and there is no prospect on the horizon for long term recovery. Unless they discover something to make and/or sell other than North Sea oil.
Jim Rogers here:
http://www.youtube.com/watch?v=QaxV0qyaUMo
Even at their worst, Western economies are currently much better off than they were 80 years ago, or even 20 years ago.
Productivity is up. Wealth is up. Real value is up (stuff is simply made better with superior materials).
The US GDP has dropped a full .095% (less than 1.0%) over the last quarter ~ which is a vast sum of money, but the remaining 95.5% of the GDP is a princely sum!
Soon....England will look like “28 Days Later.”
There, that's much better now@
It seems to be kinda like when levies are overcome. If there had been no levies, there would be a small amount of regular flooding & hopefully, people would build accordingly. But, the desire for usable land near the river causes the desire for levies to control that flooding. Then along comes the “100 year” flood. The levies fail & you got infrastructure washed out.
England is two hundred years, unhampered by progress. So I doubt worst in 100 years.
Maybe all these politicians are right may it is bad for governments that have overspent, over corrupted and criminalized politics in the last generation and the people now are unwilling to put up with it or pay for it any longer.
That, is bad for government but good for the people.
“because the situation in UK is beyond despair.”
But the whole world will blame it on Bush.
The belief that ALL of life's risks can & should be eliminated or must be compensated has made us collectively more stupid than our ancestors.
LOL! Very true!
But it will be ugly, that's for sure. At least in the USA and GB, the currencies did not collapse in the 1930s. That's why this will be worse. Global fiat is on life support.
"There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved."
-~~Ludwig Von Mises
Maybe the worst economy since Robin Hood?
Ed Balls eh? Wonder if he’s related to Dick Hertz, Phil Lacio or Mike Hunt?. . .
The biggest problems are that we don't even yet recognize that we need to restructure our economy to enable productive enterprises, and once we do, as a nation, we are going to have to spend a decade removing all the barriers of dead wood that stand in the way of real reform.
It will take a lot longer than anyone thinks, and it won't be pretty.
we still have business execs who think that million dollar retreats are a requirement to motivate their employees or else they will leave. Well, most of us are motivated by the reward of getting to keep our jobs. We have a long long long long way to go.
It took Balls to speak the plain truth.
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