Space Hoppers and Clackers

[spygirl]

Ive heard 'balance of payments' several times in the last week.

Ive not heard it for years. maybe decades.

, for all the extra economists/technocrats/MBAs since the 70s, the number of Pols attending HE (business studies, Bolton FE college ... or Oxbridge PPE, whatever). .. ratehr than making the economy better, theyve made it more leveaged, complex and blowup-able.

 

 

 

[Frank Hovis]

Possibly Sri Lanka's failure has brought it back into currency.

Importing everything and exporting nothing is going to fail at some point..

Sri Lanka's last current account surplus was in 1977.

Just five years before that it was still called Ceylon.

 

https://www.orfonline.org/expert-speak/minding-the-balance-of-payment-gaps-in-sri-lanka/

[Lightly Toasted]

On 06/09/2022 at 14:03, Frank Hovis said:

Possibly Sri Lanka's failure has brought it back into currency.

Importing everything and exporting nothing is going to fail at some point..

Sri Lanka's last current account surplus was in 1977.

Just five years before that it was still called Ceylon.

 

https://www.orfonline.org/expert-speak/minding-the-balance-of-payment-gaps-in-sri-lanka/

After the age of fixed exchange rates, "Balance of Payments" as a problem for the UK was dismissed by mainstream politicians and economists, because it's balanced by capital inflows supported by exchange rate flexibility.

Unfortunately capital inflows really means borrowing-at-interest and selling off the family silver (= ever-increasing foreign extraction of UK rents/dividends, which the people claiming it was benign never bothered to mention).

In the absence of growth to keep up with the rate of wealth export, the logical end point is that rents and dividends flowing overseas will consume the entirety of UK GDP. Of course a tipping point will come first; maybe we are now there.

[Wight Flight]

On 06/09/2022 at 08:33, spygirl said:

Ive heard 'balance of payments' several times in the last week.

Ive not heard it for years. maybe decades.

, for all the extra economists/technocrats/MBAs since the 70s, the number of Pols attending HE (business studies, Bolton FE college ... or Oxbridge PPE, whatever). .. ratehr than making the economy better, theyve made it more leveaged, complex and blowup-able.

 

 

 

Careful. We will be discussing Sterling M1 and Sterling M3 before you know it.