6 October 2011

It's the economy stupid !

Cameron was it again yesterday.
Blaming the country's present economic problems on profligate spending by the previous government. 
No, no, no. A thousand times no.
Spending under the previous government was neither spectacularly high nor spectacularly low - broadly it was on a par with Lady Thatcher's Conservative administrations. In short it was affordable and when he was in opposition Cameron pledged to match the spending until 2010.
No, our present difficulties were caused primarily by the recklessness of the banks and other financial markets and institutions.
We now suffering cuts because the country bailed out the banks. That is why we have such a large deficit - and to address another lie - it is not at an historic high, even for peace time.
The problem is that Cameron has reversed the growth policies of the previous government with the result that growth has flat lined, inflation is rising and so is unemployment.
In the first few days of its administration the coalition scared the living daylights out of consumers by raising the prospect that we could end up as another Greece - not only did this destroy consumer confidence it was also utter twaddle. 
Greek debt, as a perecentage of GDP, is over twice the size of ours - and Greek borrowing is through high interest, short term, loans whilst ours has always been at lower rates over much longer periods. There was never the remotest possibility that we would go the same way as Greece.
However, we now have the worst of all worlds - a stagnating domestic economy, a European financial crisis and a struggling economy in the States.
Where, pray, is the growth supposed to come from ?
Yet the British public, in its infinite stupidity, still thinks that Cameron is the best person to deal with our economic situation.
Pah, let's see if that holds when the cuts really start to bite next April.
Steve Kelly 6th October 2011.
Review of the speech in The Guardian

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