TCC Senior Fellow Detlev Schlichter appeared on The World at One to highlight the folly of reckless spending and ever-increasing debt that is now coming to a head in Europe. Anticipating dramatic belt-tightening and default for several European economies, Detlev warns against leaving the Euro for the purpose of debasing a new currency to fund government spending (as some mainstream economists propose), asking:
“Who wants to hold a currency that is specifically issued for the purpose of devaluation?”
You can listen to his contribution to the debate here.
In addition, TCC Board Member Steve Baker MP took to the airwaves to warn against adopting the government’s new emergency lending scheme. Steve describes the new stimulus as being potentially harmful at worst, and at best unlikely to work, given that banks are trying to reduce their balance sheets and are likely to simply sit on the cash. Highlighting the fact that the scheme originates from the same set of economists who keep failing to perceive even the general pattern of events, Steve goes on to point out the painful truth that few seem to want to face up to:
“There is no painless way out now. We have got to have a correction.”
You can listen to Steve on The World at One here.