The dangers of high spending

The Independent's Hamish McRae - who's been on the money more often than most commentators during this downturn - today outlines the reasons to be wary of a Government spending boom in the PBR. They're worth quoting in full:

"The first is international. Trust is vital and there is a danger of a systemic loss of confidence in British financial management. Already sterling has fallen by as much as it did in 1992 when it was ejected from the ERM. We are going into this downturn with an exceptionally high budget

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Yes, that's the damn point!

Ross Clark has a nice piece about how appallingly run the nationalised industries were. OK, no need really to rehash that argument, but the comment that's been left on the piece amused me.

"Can't you invest in more rolling stock and try to expand the business? I asked. No, he said: that wasn't part of BR's remit."

Surprisingly enough, that is what the Tories TOLD them to do: run down the railways. Actually, BR did a relatively efficient job, considering how money-starved it was.

Let's assume that this is true (I've no idea actually, but...

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Prem Sikka

Prem's an accounting professor at the University of Essex and is rapidly carving out a minor career as a leftist commentator on matters financial and economic. The only problem is that he advocates, all too often, policies of the utmost lunacy.

There is an urgent need to consider reforms. There is a nagging doubt that the concept of limited liability encourages shareholders to be passive and directors to be reckless. So government should dilute the benefit of limited liability and insist that in the event of bankruptcy at least 50% of the outstanding liabilities should be met personally by...

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The Watford System?

Rarely has a summit been so hastily organised, hyped so much, yet achieved as little as last week’s G20 meeting called by President George W. Bush to deal with the world’s financial crisis. World leaders did agree on a confidence-boosting package of economic assistance, but put off sorting out any detailed plans on overhauling financial management and regulation, or revising the problematic global currency trade and settlement regime until their next summit, scheduled on April 30, when the United States will be steered by President Barack Obama.

So what should happen between now...

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Conservatives and marriage

I'm not sure about these new proposals about marriage you know. Not sure at all.

Pre-nuptial agreements should also be legally binding ....

This may or may not be a good idea: I'll leave that to others to opine on. But I think it's more complex than many realise as well. The reason that pre-nups don't work in English law is that marriage itself is a contract, one that over-rides all previous ones. Just as an example, when you marry your will changes: there are statutory provisions that mean that your previous disposition of your assets...

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