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..There's a little Samuel Pepys in all of us..

Monday, October 20, 2008

'Gordon defends further borrowing'.. to paraphrase the BBC and every other report on this Keynsian binge we are about to embark upon..
And what else would we expect.. an united stance by the governments worldwide to justify the debt we're jumping into is the least, surely..
It's frightening the object lesson of what this policy leads to as provded historically.. perhaps most recently by the Bob Rae Liberal Democrat government of the Canadian province of Ontario..
For two years.. it seemed the economy was just fine again..
Then Standard and Poors relegated Ontario from a 'Triple-A' credit risk.. to an 'A'.
Imagine such a reassessment, on a global scale. Take into account the fact that the sheer size of the debt the world is preparing to effectively write off, the timeframe of the backlash will be exponentially shorter..
Ontario, at least, had the buffer of InterProvincial Transfer Payments to shore up the debt..
Not quite sure what would qualify as a global equivelent..

Keeping in mind this is a running commentary.. designed for the most part to aid my own memory.. for future reference..
Note: house prices are reported to have fallen another 5% last month, and indications are, the devaluation will continue..
Keeping in mind the government is in fact the largest owner of mortgage debt, through the controlling interest gained through bail-outs.. we're watching our own equity melt away..
But we wrote about this, quite a while ago..

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