He spoke excellent English. His was a fast growing economy, but what of mine, he enquired? Chinese television painted a fairly grim picture. So I sought to explain….
“Something has to be done. There at least seems to be general agreement on this point. But as for what that something is, well, that’s the first stumbling block. Most blame the previous administration racking up a huge deficit. So big they’ve had to divide it into chunks. For example, there’s what they now call the structural bit. The part that never goes away, unless you repay it. Some advocate doing just that, as you might were it your own credit card. Others argue spending more is the solution. You hope they haven’t got cards.
Even those who agree the debt should be repaid are divided on how quickly to do it. Those who argue for prompt repayment suggest it shows the markets we’re still credit worthy. So, presumably, we could borrow lots more money, and start all over again. Others are pushing for more gradual repayments, but as they were largely the ones that got us in the situation in the first place nobody’s listening to them.
A motley crowd of characters, claiming to represent the ordinary man, have sought to fill the vacuum. They seem to agree the problem’s someone else’s fault. Bankers mostly. Certainly not theirs. And whatever is to be done about it, that’s fine provided nothing actually changes. Pay, conditions, working practices, the usual stuff. It’s starting to look like a Greek tragedy…
They’d been the odd bold utterance from a senior public servant, a few politicians. Suggesting there might actually be some inefficiencies in the system. To be rooted out. Only to retract or diminish, offer profuse apologies, a day or so later.”
He looked baffled. And quite unimpressed. How could your Government let this happen? Time to return to the road I thought. Didn’t want to get bogged down in quantitative easing. Or fiscal stimulus. Not before lunch.
