The looming prospect of a General Election, leaves me in a quandary, I am desperate to see the back of the labour party, but I am equally unconvinced by the somewhat wet Conservative opposition. Labour have had thirteen years, and by any measure, we can see the wrecked economy, you only need to consider that the Government’s share of national spending has moved from around 36% at the time Labour took office in 1997 to around 52% today. Hardly a position to be envied as any government attempts to restore the budget deficit we can see ahead. Which according to some observers will peak in 2014 at £1,400,000,000,000 or £23,333 per individual based on a population of 60 Million!
What about the Lib Dems… Vince Cable always comes across well, but they seem a long shot and in any event, their position on the EU worries me, not that the other two parties hold up much better in that regard. So excluding most of the marginal parties I feel compelled to consider UKIP. Considering only the Economy at this juncture this report from UKIP (in PDF format) shows some of the horrors awaiting us and their take on how to deal with it.
Computational complexity analysis of Credit Creation
I think that all parties should read the article by Greg Pytel, the title of which is the header above, it is a complex statement for sure but I would like our prospective political candidates to sit down read it and submit their own responses. Since unless we address this issue we will be here again in a few years time. The article is here on Greg’s site. The statement below is from the opening paragraph.
This article presents a rigorous analysis of many issues discussed on this blog already sometimes in a less formal manner. Especially a banking practice of lending with Loan to Deposit Ratio above 100% that has been shown to constitute a sufficient condition of causing liquidity shortage in the banking system (i.e. it was a sufficient condition that caused the current financial crisis).
This is what the Group Chief Executiveof Barclays said: Could it be something to do with Turkeys and voting for Christmas!
“I find your premise that banks, particularly those with a loan-to-deposit ratio over 100%, are operating pyramid schemes completely baseless.” wrote Mr John Varley, the Group Chief Executive of Barclays plc, to the author.