Comments on: Ec consequences of Mr Osborne reviewed in RES etc http://www.debtonation.org/2010/07/ec-consequences-of-mr-osborne-reviewed-in-res-etc/ Wed, 08 Feb 2012 08:39:46 +0000 hourly 1 By: Mike Harries http://www.debtonation.org/2010/07/ec-consequences-of-mr-osborne-reviewed-in-res-etc/comment-page-1/#comment-2056 Mike Harries Sun, 08 Aug 2010 10:22:51 +0000 http://www.debtonation.org/?p=4149#comment-2056 I am a new visitor to your site and I have found your articles and comments very instructive.I respect those who challenge the herd instinct! I have read your piece on the economic consequences of Mr Osborne's proposed consolidation.I am not an economist as you may detect from my comments. I have three points :- 1. It would be interesting to know what conditions were operating in the sovereign debt and credit markets in each of the historical events you have analysed - had there been anything akin to a global credit freeze in any of these events and who were they key providers of sovereign debt at the relevant times 2. What levels of private debt accompanied the ratios of public debt you analyse. In any of the previous episodes, was the level of private indebtedness as high as it is today. 3. Alistair Darling accepted he had little scope for fiscal expansion and let the BoE do the heavy lifting with monetary boosts via cutting interest rates to near zero and buying government debt. In the absence of direct incentives to private business to expand at a time when credit is effectively frozen, do you think monetary policy/QE can substitute for government spending boosts. Thanks I am a new visitor to your site and I have found your articles and comments very instructive.I respect those who challenge the herd instinct! I have read your piece on the economic consequences of Mr Osborne’s proposed consolidation.I am not an economist as you may detect from my comments. I have three points :-

1. It would be interesting to know what conditions were operating in the sovereign debt and credit markets in each of the historical events you have analysed – had there been anything akin to a global credit freeze in any of these events and who were they key providers of sovereign debt at the relevant times

2. What levels of private debt accompanied the ratios of public debt you analyse. In any of the previous episodes, was the level of private indebtedness as high as it is today.

3. Alistair Darling accepted he had little scope for fiscal expansion and let the BoE do the heavy lifting with monetary boosts via cutting interest rates to near zero and buying government debt. In the absence of direct incentives to private business to expand at a time when credit is effectively frozen, do you think monetary policy/QE can substitute for government spending boosts.

Thanks

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