The British Prime Minister is one of the Stupidest People Alive [View all]

This guy seems to actually believe this shit.

This is a very typical presentation of ideological bullshit. State a readily disprovable ideological fantasy followed immediately by a tautology. Then if anyone disagrees with you you can accuse them of disagreeing with the tautology, and being obviously crazy.

It is surely true that "If markets don’t believe you are serious about dealing with your debts, your interest rates rocket." But to a bond purchaser "being serious about dealing with your debts" simply means having the intention and means to pay your debts, as scheduled.

Deficit spending is not synonymous with having no intention of paying off your bonds.

US bond yields are, as I write this, the lowest they have ever been. Ever. E-V-E-R. And our deficit is about the largest it has ever been during the last century except during WWII.

For a nation offering zero fear of default (like the UK and US) the confidence factor is already essentially maxed out. Further reduction of interest rates can only come from decreased economic expectations.

So in a sense Cameron is right. If austerity wrecks your economy then it depresses interest rates. True. Bond buyers are betting against growth. Enter a depression and watch the magic of low interest rates... they will plummet.

Why doesn't Cameron just say what he really means...



Stupid, stupid man.