Relying on ever-rising house prices pushing home values up via artificially cheap lending creates only the illusion of growth – Ros Altmann
As you know, I have lived in London for ten years. The United Kingdom, throughout the Gordon Brown years, was the Keynesian stimulus experiment that the advocates inflation and devaluation always ‘forget’. They talk a lot about Abenomics and Obama but forget the stimulus+inflation-led economic destruction of the early 2000s, and the hole in public finances it caused. A hole that the UK has not been able to dig itself out of, despite carrying out a brutal monetary stimulus policy where the Bank of England buys nearly 70% of the public debt issued. Continue reading UK Recovery: Sustainable Or Another Housing Bubble?