I find this vaguely amusing.
Liam Halligan talks about the similarities between the borrowing splurges of the 70s and those now.
Yes, there are similarities. But he doesn\’t note the one huge difference.
We had a fixed exchange rate back then, we have a floating one now. Makes a huge difference. Having to defend the exchange rate imposed limits upon what could be done….that run to the IMF was about getting the foreign currency to prop it up. Floating rates mean that isn\’t necessary….and thus that we can go a lot further into debt in the absence of such a brake.
The man’s a moron.
“The markets and ratings agencies aren’t fooled”, he claims.
But the yield on Treasury stock is less than 1%…
The tories (Heath, I believe) floated the pound long before Callaghan’s crew took you to the IMF (in June, 1972 in fact).