"Putting The Recovery At Risk"

[threegee]

You heard it a zillion times from Gordon Brown and his cohorts, and it was all a load of complete ^^^&(*! Simply a desperate excuse to pretend we could go on spending far more public money than any government could reasonably raise in taxation.

It's now becoming clear that there is no recovery (in the historic sense of the word), and what was being touted as normal conditions was in fact an unsustainable government-spending-led boom. Some of the NuLabour survivors still haven't got the message, but the more intelligent members of Gordon's gang have:

There is nothing progressive about a government that consistently spends more than it can raise in taxation and certainly nothing progressive that endows generations to come with the liabilities incurred with respect to the current generation. -- Lord Myners (Labour)

http://news.bbc.co.uk/2/hi/politics/10270585.stm

There are sad times just around the corner.

George Osborne foreshadowed next Monday's announcement of new government economic forecasts on Tuesday by saying growth alone would not bring borrowing back into line. "Getting over a £156bn deficit is not so easy,” the chancellor said,...

[Malcolm Robinson]

Yes we are about to feel a cold blast of reality, especially up here in this region! The NCC 2010-11 budget only just got through with its package of cuts, now they are having to go back and find an extra £10M for this year, almost doubling the cut's package!

We have already seen, this year, proposed closures of things like libraries, day centres etc which have been held off because of public pressure, I would expect them all to be chopped forthwith and many more as well!

This is the legacy of ZaNuLab make no mistake about it! I said Mr. Brown wasn't a good Chancellor never mind PM but this will be on a whole new level! The new Gov will need to get deep cuts into place right now so they can pass the blame onto the last administration and deflect criticism to them. That might be a political play but its going to hurt!

Thing is I don't expect the whole budget to be met with cuts so gird yourselves for some meaty increases in VAT, Rates and any and all indirect taxation! It looks a long way down before we can start the uphill process!

BTW,GGG, with RPI at 5.3%, CPI 3.7% and base rates held at 0.5% looks like the MPC are trying to raise inflation levels? If this carries on they will debauch the currency and we will see your raging inflation! If the job of the MPC is to stabilise prices and in particular inflation, with a target of 2% how come the, supposedly independent, board haven't been sacked, they are clearly failing in their remit?

[threegee]

Britons' expectations of prise rises next year jumped in May by the biggest amount since late 2008, when oil and commodity prices were surging, a long-running survey reveals

The data add to fears that stubbornly high inflation could become a self-fulfilling prophecy as the expectation of price rises translates into wage demands, fuelling a wage-price spiral. -- FT

And.. they have left interest rates at 0.5% today! Could it be that the 2% target is now history, but no one has got around to telling Joe Public?

[Joe Public]

GGG ... I knew about it ages ago.

[threegee]

:D