Economy

My favourite part of the Guardian’s interview with Vince Cable today? When the business secretary says that his sermonic prescriptions from during the crash are of “enduring relevance” now. But there’s more to the article than self-aggrandisement, not least Cable’s gloomy overview of the British economy. It’s not quite the same as Alastair Darling’s Guardian interview in August 2008, but there is a touch of that here. “I think it is not understood that the British economy has declined by 6 or 7 per cent — it is now 10 per cent below trend,” says Cable, “Britain is no longer one of the world’s price setters. It is painful. It

‘Brown makes pitch for IMF job with plea to rich nations to meet education pledges’ reads the headline on page 3 of The Guardian today. This is all part of a growing body of evidence that Gordon Brown really does think he is in with a chance of succeeding Dominique Strauss-Kahn. Certainly, the usual suspects are out and about talking up his chances. Realistically, Brown is not going to get the job. But if Brown really does want to have a go, it is bizarre that he’s not tried to contact either David Cameron or George Osborne to reassure them about how he’d behave if he got the job; Danny

What a curious speech by Nick Clegg to the CBI last night. Curious, not because it was bad — but because, in straining to give a uniquely “liberal” justification for deficit reduction and the spending cuts, the Deputy Prime Minister actually crafted an address that most Tory ministers should, and would, deliver themselves. Take his “liberal analysis” of the last decade: “On a liberal analysis, the last decade represented the worst of all worlds. On the one hand: unchecked private debt; an unsustainable housing market; an overleveraged banking sector; overreliance on City-based financial services while other regions and sectors suffered neglect. On the other: an inefficient state; central government wasting

David Cameron has a good relationship with Barack Obama, which will be on display when the US president visits Britain shortly. They speak regularly and frankly and their senior advisers are in near-constant contact. The idea that the Lib Dems would foist a more “Love Actually” policy onto the coalition has come to naught. Yet Britain’s influence in Washington has waned. This is no fault of the Prime Minister. In fact, his personal diplomacy has probably slowed-down the process. Instead it has to do with structural changes in the US: the coming to power of a “pacific” President, the importance of US-China ties, the emergence of the Tea Party. As

With Dominique Strauss-Kahn, known as DSK, undertaking scientific and forensic tests to determine if he sexually assaulted a hotel maid, the International Monetary Fund will be run by its No. 2 official, John Lipsky. A former banker, Lipsky was appointed “first” deputy managing director in 2006, and was expected to step down later in the year. But the change at the top will bring the former Permanent Secretary of the Department for International Development, Minouche Shafik, into the limelight. She recently left London to take up a post as deputy managing director at the IMF; she will now take Strauss-Kahn’s place at a meeting with Europe’s finance ministers in Brussels

Gordon Brown may have gone, but advocates of his calamitous policies remain. David Blanchflower, the chief exponent of borrowing more, has a piece in The Guardian today which is worth examining. Written with his trademark chutzpah, it’s a very clear exposition of the Labour argument — along with its flaws. Here are some extracts, and my comments: “In his budget speech last month, Chancellor George Osborne suggested that he was hoping for ‘an economy where the growth happens across the country and across all sectors. That is our ambition”. Sadly, to judge by Wednesday’s GDP figures, growth under this coalition remains just an ambition, a mere illusion.” And why would