After G-20 Oh dear, oh dear, oh dear

The 'outcome' of the G-20 summit is about as dismal as was possible. For the details, see http://www.whitehouse.gov/news/releases/2008/11/20081115-1.html

All they have done is to agree dates for subsequent meetings and a glib 'agreement to think about it'. Not even an 'Agreement to agree'. I had hoped for 'Heads of Agreement' stating those things that had been agreed in principle, subject to the fine print by lawyers and ratification by local administrations, but instead, they assure us that they will think about it. Good-oh.

What does this mean? As I wrote on Friday, more borrowing and more fiscal stimulation. Tax cuts and bailouts financed by borrowing. Mr Brown is widely tipped to give a massive handout to the 'poor'. Not, you understand, because the 'poor' are 'needy' but because the poor tend to spend what they get the instant they get it (could be WHY they are poor??). The Government wants instant results and political capital so it hands out billions of pounds of taxpayers' money to people who are mostly already net recipients of benefits. How fair is that? Not just unfair, but as policies goes, it is insane for fiscal reasons.

We are in the biggest financial tempest the world has EVER seen. It has never before happened on such a scale and there is no end in sight.

What is not helping is economists tinkering around at a micro level with the odd % here or there, with interminable debates about how "more stimulus is needed" and where, and how it should be stimulated. What would really help us is for these utter idiots who, only a few short months ago were telling us how this was all going to be contained, to shut up and let some 'handbag' economics take over.


1. Let GBP find its own level in the market - do not support it.
2. Provide no state funds for failing businesses but instead provide benefits, training and job-search assistance to those who are in severe financial difficulties.
3. Cut out -- ALTOGETHER -- all government spending that is non-essential. No more gender/race/age/ commissions. Slash administrators in every field of government spending to the core. Cut the upper-tier state-employees salaries by a large margin. Slash government-funded expenses and allowances to subsistence and pure reimbursement levels.
4. Put all government pensions on a fixed basis. No more index linked.
5. Remove the concept of 'performance-related pay' from the public sector.
6. Accept that there is no such thing as a business that is 'too big to fail'. It is all part of a life-cycle. All large businesses are born, grow and die, just like people. Think British Leyland, and how that came about.
7. Refuse to take on any further public sector debt for any reason whatsoever other than imminent defence of the nation.
8. Make a public statement that the servicing of government debt will be the number one fiscal priority.