Thursday, 5 July 2012

For George Osborne and Ed Balls, the Libor scandal is a fight to the death

"No matter what Balls’s title may have been over the 13 years of Labour’s government, his main job was as Gordon Brown’s de facto chief adviser. Together they bear more responsibility for the crash than perhaps any two people in Britain. They personally designed the regulation system which failed so spectacularly. They reprogrammed the Bank of England only to worry about inflation, rendering it blind to the massive asset bubble. They came up with the “golden rule”, which saw Britain’s debt rising massively even in the boom years. And while Brown paid the price at the ballot box, Balls had thought he’d got away with it."
"Perhaps the greatest single cause of the crash was an addiction to cheap debt – and a belief that this was the new normal. Just yesterday the Bank of England decided to print another £50 billion to keep the Government’s cost of borrowing artificially low. Fiddling the interest rate, it seems, is a game that a long list of distinguished people can play."

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