Any Economists Opinions on this?

[LaserChild9]

I'm not an economist, I know nothing about economy's and how they work, but while browsing youtube I had an add come up "The End of Britain" (dun dun duuuuun!), which I now realise I have seen in a few places, no idea why it would be targeted at me. Anyway, we all know what they say about curiosity, so I clicked the link and it took me to this page:

http://info.moneyweek.com/urgent-bul...FcPHtAodFTsA1A

Its a long video, about an hour according to youtube, I think I watched about half hour but then I just got bored. It seems to me to be scare tactics to improve sales of their magazine. I have no idea if their statements about their previous predictions are true but I am curious, is there any truth to this at all?

[soulstaz]

I didnt watch the video, but did read there «Warning», but they only trying to point out that the current way of administrating the UK ( Spending> Income) Isnt viable in the long run. There hypotesis is that UK will eventualy go bankrupt like Greece, Italia, Spain and the upcoming France.

Since i didnt took the time to read there paper, the actual research, since, most of time, video turn out to be propaganda, i cant say if there methodologie are right. Nevertheless, i never seen those number before. So i advide to be caucious with them.

Edit: If you really want to read economics news. i suggest The economist. Quite clear even for people that dont have any education in that field

[Raamm]

I personally am majoring in political science and minoring in economics. I doubt most of those predictions if any are actually true. For the most part they want subscriptions to their magazine. I will admit Great Britain isn't in great economic shape however, it is in good economic shape comparatively. Doom and gloom economic predictions are pretty much self-fulfilling fallacy's of course the markets are going to crash again but, exact dates and hows are never given. I mean it's like your doctor telling you that you're going to die someday well, of course you are you're human we don't live forever.

I personally would try to have a bit more faith in your government maintaining the economy and trying to fix it with or without private interests. Because, the organization that has the most invested in keeping economic order is your government.

TL;DR Don't worry too much the political structures of our ancestors are quite strong at preventing chaos physical and economical.

[Puremallace]

Sorry cannot watch the video at work, but I can give input based on what I normally see on CNBC. The main issue with Europe mainly right now is the banks have not been recapitalized. In the United States everyone bitched and moaned when we effectively forced the banks to audit themselves and to come up with capital requirements.

Now everyone says the US is the place to invest because the banks are so stable. You also have to remember Europe embraced a severe austerity package after the recession while the US did stimulus bills one after another. Europe has yet to embrace these types of policies. I mean shit the IMF is still hesitant to decrease interest rates to stimulant the credit markets.

The banks in England and Europe effectively own the politicians, so you will never see audits or accountability done and investors will continue to stay away.

[braeldiil]

I didnt watch the video, but did read there «Warning», but they only trying to point out that the current way of administrating the UK ( Spending> Income) Isnt viable in the long run. There hypotesis is that UK will eventualy go bankrupt like Greece, Italia, Spain and the upcoming France.

Since i didnt took the time to read there paper, the actual research, since, most of time, video turn out to be propaganda, i cant say if there methodologie are right. Nevertheless, i never seen those number before. So i advide to be caucious with them.

Edit: If you really want to read economics news. i suggest The economist. Quite clear even for people that dont have any education in that field

Well, they start off with an absolute untruth - spending > income is not neccesarily a bad thing for a country in the long run. We have decades of experience with this, and it works. In fact, done right it's actually better for long term growth to run a small budget deficit every year.

Here's the key - the annual deficit needs to be smaller that the growth in the country's economy to be stable. Under those conditions, the national debt is stable - it gets large in absolute value, but doesn't impose a growing burden on the economy. In fact, it's quite possible that you can do this and actually reduce the debt load carried by the country. This is, in fact, exactly what the United States did after World War 2 until Reagan.

I said earlier that running deficit can actually be a good thing. There are a lot of positive aspects to a stable deficit. First, it provides a ready supply of stable bonds, which the financial sector can use a basis for the rest of the financial system. Second, it's effectively a way to borrow from the future. But since you can use those dollars today in ways that will grow the economy, you end up with more money in the future. So, much like the lady who takes out a bank loan to start a business, running a deficit actually makes you money over the long run.

[Jackmoves]

Sorry cannot watch the video at work, but I can give input based on what I normally see on CNBC. The main issue with Europe mainly right now is the banks have not been recapitalized. In the United States everyone bitched and moaned when we effectively forced the banks to audit themselves and to come up with capital requirements.

The banks in England and Europe effectively own the politicians, so you will never see audits or accountability done and investors will continue to stay away.

Europe got some of the best capitalized banks in the world, e.g UBS, our (swedish) 4 largest banks will pass Basel lll without breaking a sweat, core tier 1 ratios of 14.4(nordea) to 19.2%(handelsbanken), making them some of the best capitalized banks in the world. Most of the major banks onthe continent are in the process of recapitalizing as well PNB Paribas, Deutsche bank etc.

The major continental banks are not quite up at the same levels as the major US banks, but its a on going process.
OP, Will check your vid later.

[Puremallace]

The major continental banks are not quite up at the same levels as the major US banks, but its a on going process.
OP, Will check your vid later.

Europe is in need of a Dodd/Frank bill and Volker rule. Investors are severely skidish about that place.

[Jackmoves]

Europe is in need of a Dodd/Frank bill and Volker rule. Investors are severely skidish about that place.

I agree, but an exact copy of the volcker rule aint gonna happen, the recent regulations discussed will see propriaty teading banned though, at least among the major banks, the "too big to fail" ones, what europe needs is to increase investments from domestic sources though, foeign direct investments is higher in several European countries then that of the US, but if you mean domestic investment then yeah, it would be good to see it increase across the board.