Pesto is really scraping the bottom of the barrel when he uses former BBC insider Will Hutton (a psudo economist speaking psudo science) on numerous occasions to try and salavage the train wreck that his Gorgon Brun's reputation.
Terry Smith who from the UKs pov was on the case from the mid noughties got one shot, the apparent free market ideological nexus that was Maggie and Ronnie was given top billing, with walk on parts for Blair and one sitting down shot for dear Gordon, all par for the BBC. No mention that bailing out the banks was not an act of captialism it was an act of goverment. Which was odd as Gorgon and co had 13 months from the fall of Northern Wreck to the bailout to come up with something else.
No mention of Bretton woods and the gold standard (gold is the devil for the Brownites, thats why they sold it off) or the fiat Banking sytem which is one that is built on money creation through credit. Or Fractional reserve banking which used to be built on people saving money not interbank lending fueled by the Asian wall of money, something the authorities are supposed to understand and act upon, if they are acting with a duty of care. All that tax payers cash buying the top brains at the Treasury was off nothing.
Nor indeed the fact that most of the debt, just over half was built from 2000 onwards, and went into building the biggest property bubble in UK history which was pointed out to Dear Gordon by the IMF in 2004. And a repeat of the bubble following the mid eighties bubble that was still fresh in everyone's except Gordon s mind. Not to mention the governance of the banks and reckless govt. spending from 2000, and of course not making the changes needed in the good times on welfare and pensions...but to be fair Pesto is talking about the global economy.
And a central theme, Real wage growth. surely the link is with prices, you cant just read the wage numbers on their own, if today I can buy more big macs for the same money then the money is worth more. Pesto addresses both points but not together.
Debt in itself is not the problem, the problem is excessive debt that is unsustainable. The interesting point made in the Documentary is why the Chinese save, which skirted around the answer. They have to save to insure themselves as the state does not reward fecklessnes. Which is an interesting thing, one which the Brown/Pesto/Hutton axis fail to see in their distain for the uncaring ideological free market Maggie. She actually pointed out a smaller state would foster better individual moral decisions, such as saving for your future. Well I fancy that is what is going to happen in the future, I am sure we will have Hutton's and the Guardians support.
And finaly but not least the usual blah blah about British Manufacturing, as was pointed out by Evan Davis the other month, we acutally make quite a lot of stuff. The simple point is that it was easier to go off into the city and make a pile of cash than make stuff.Which brings us back to dear Gordo' who was too interested in the 80 billion plus the city was throwing him to pish up the wall than keep the economy in balance by watching the deficits.
And so to the future, are we going to be more self suffienct? are we going to get the BoE to set interest rates with one eye on our defecits? are we going to get out of the Eu and trade with the people that matter int East? Pesto and Co will take a bullet first.