We Are All Dead

1.5% is a joke. Tell me it's a joke. To have driven the entire United Kingdom economy into liquidity preference behaviour is keynesian all right. What a pity Keynes thought such a world a disaster. Once here monetary policy slips from our cold, dead hands.

Fiscal requires lower taxes and higher government expenditure. Unfortunately (the very word is like a bell when considering New Labour) fiscal needs ready projects. The only projects New Labour has ready are a state data base with electronic pass cards to access it that must be carried by subjects at all times on minimum pain of a month's detention without redress plus fines, and Titan gaols to keep all the people in.

Fiscal is good too when there is a low deficit and a sustainable level of public debt. It's good as well when there are potential creditors about, but at approaching zero interest rates, not to mention a depreciating currency, step forward who? exactly. We aren't going to refinance our existing debt, the auction will be deserted.

Keynes has never been here. Speaking in the keynesian spirit, the only hope is exports. Of what? Planes? Boats? Trains? Cars? Wedgwood? Viyella? Financial services?

If we want to get to Keynes, we shouldn't be starting from here. A dozen years of New Labour and the long run has arrived.