Back in 2008 (5 or 6 years ago now) you may recall that Labour screwed-up the economy big-style, and used “it was an international crisis” + “it was Thatcher’s fault for de-regulating the banks” as an excuse to try and wriggle out of the blame. As their supporters are generally lazy bastards who seem to get their information (or lack of) via word of mouth, or only just bother to read the headline and not the whole thing (You may have noticed this if you’ve ever tried to convince them of the benefits of Flat Taxes, or bringing sanity to human rights laws)…. last week I noticed they are still peddalling the myth that their idols couldn’t possibly be to blame for the financial crash “because it was an international crisis” & “Thatcher de-regulated the evil banksters” via Social Media.
Us Conservative-types of course know better (or at least should do), because we can be bothered to read such excellent sources of information on this kind of thing as John Redwood’s Diary, ConservativeHome, Telegraph Blogs + Finance, The Spectator, The Commentator + many others… and therefore know that it was actually more kinda the shit hitting the fan from lots of different financial problem at roughly the same time to cause one humongous international crisis.
So let’s try give them a recap…….. (not that they’ll pay any notice I suppose)
British Financial screw-up
This WAS caused by Gormless Gordon changing the financial regulatory system, and is extremely well explained in a post on John Redwood’s blog entitled “How we got into this mess” (30th march 2009).
Gordon Brown did not make the Bank of England “independent”. He gutted and filleted it, taking away its duty to manage the government’s own debt, and removing the responsibility to supervise the banks.
He put his own people on the Monetary Policy Committee. He changed its target in 2003 so it kept interest rates down prior to the 2005 election. The MPC failed to hit the inflation target, allowing some prices to soar. It ignored the sharp rises in house and property prices, the fall in the pound and the commodity cycle.
It was NOT caused by Margaret Thatcher de-regulating the banks, as stated in a John Redwood blog from 7th May 2009:
The extreme extension of credit happened in the last decade under Labour and under Mr Brown’s very own design of regulations. When Margaret Thatcher left office the simpler and more efffective controls on cash and capital did not allow banks to overextend and create a big asset bubble.
Nor did the Economic Policy review’s critique of Labour’s over the top and totally ineffective mortgage regulation cause the crisis – it was part of a case to have effective regulation of what mattered as we did before Brown changed it all.
This was basically caused by the Eurozone being a bloody stupid idea crafted for political reasons rather than economic ones, as well as letting the Greeks & Italians into the Eurozone despite them having shaky finances, and leaving countries such as Ireland being unable to tinker with interest rates to suit local economic circumstances.
This was apparently caused by political correctness: Leftards in the Clinton-era believing blacks & latino’s couldn’t get mortagages to buy their own home “because banks are racist institutions”, rather than the real reason being because these groups are generally in a too piss-poor personal finance situation to be able to pay back a mortgage… and thus was born the sub-prime mortgage (which also helped trigger the British financial crisis, with UK banks dabbling in them too).
Prior to starting this blog I also saw an article citing the Russians being involved in the crisis too, as a form of Economic-Terrorism.
Back in September of 2013, For The Record looked at the possibility that countries hostile to the U.S., like China and Russia, may have artificially driven up the price of oil and intentionally crashed the stocks of some financial institutions, escalating chaos prior to the 2008 economic crisis. Yesterday, a BBC report seemingly confirmed this investigation.
In a September article for TheBlaze.com, TheBlaze’s senior Washington correspondent Sara Carter explained the threat of economic terrorism to the United States.
China, Russia and even Al Qaeda, among others, all have one thing in common: They believe that unconventional warfare against America’s economy is the best way to destroy our nation without actually ever having to fire a shot.
And our enemies almost made it happen in 2008.
[F]ormer senior U.S. officials disclose what the Pentagon and Washington establishment had been hoping to bury — that the near economic collapse of the United States in 2008 was not due to widespread failures in government regulations, but a planned attack to destroy our nation perpetrated by both China and Russia.
There’s more to it than what I’ve had the energy to track down for this blog post, but it pretty much sums it up… use the comments box below to chip-in with more if you want to.