DAVE - "WE HAVE BLOWN IT, BIG TIME"

[Cannydc]

Dave and his senior ministers have admitted for the first time that there is a danger they will not be able to tackle borrowing on time.

The Prime Minister on Monday conceded that tackling Britain’s debts was “proving harder than anyone envisaged”, raising the prospect that the Coalition would be unable to close the deficit by 2014-15.

That would rule out any significant tax cuts before the next election. It also raises questions about the Coalition’s fundamental purpose.

The candid remarks pave the way for George Osborne, the Chancellor, to admit next week that his target will be missed and the structural deficit will not be erased until at least 2015-16.

In his autumn statement next week, Mr Osborne will cut his forecasts for economic growth this year and next, blaming the eurozone crisis and the darkening global outlook.

Dave now claims that 'debt is a drag on growth'...

No Dave.

The drag on growth is caused by plumetting confidence among those of us who would normally spend money. New car, new kitchen, TV, Hi-Fi, Holidays etc. And that confidence was dealt a mortal blow the day you decided to use your tenuous grip on power to forward your Tory dogma and put a million more out of work, while at the same time crushing the poorest with rises in VAT and the cost of fuel. You killed growth, Dave, along with the worst chancellor in my living memory (where have you hidden him, by the way ?)

And you blew it, Dave - just like it always looked like you would. Now resign. You ain't worth a light.

[Cactus Jack]

There is more to it than that Canny.

From 1980 and for many years globalisation and expanding markets created huge pressures on companies to upleverage, and that was good for a while. Companies borrowed more to make more to pay more; People worked more, were paid more and bought more; Banks lent more, and more and more and more - this last was not so good. Prices went up. Not food prices, too much competition, or electronic goods, advancing technology dragged prices down, but property prices - the avenue of least resistance for this credit explosion - hit the roof.

Normally in a boom you would expect government to pay down debt, and that's what happened, but because China was almost begging people to take their moneythere was an imbalance between the rate at which governments were deleveraging and the rate at which companies were upleveraging - a fatal imbalance as it turned out. Governments of all colours bought into the idea that low taxes automatically 'created wealth' and then when the Chinese saw it was all going pear shaped and refused to continue to fund the speculative boom in property prices it all came tumbling down.

Dave is learning exactly the wrong lesson from this. The proper lesson is that governments should be a brake on an economy that is booming and an engine for an economy in recession - for some reason Dave thinks we need to apply the brakes when the car has stalled and the engine has siezed up.

[art1hur1moh]

There is more to it than that Canny.

From 1980 and for many years globalisation and expanding markets created huge pressures on companies to upleverage, and that was good for a while. Companies borrowed more to make more to pay more; People worked more, were paid more and bought more; Banks lent more, and more and more and more - this last was not so good. Prices went up. Not food prices, too much competition, or electronic goods, advancing technology dragged prices down, but property prices - the avenue of least resistance for this credit explosion - hit the roof.

Normally in a boom you would expect government to pay down debt, and that's what happened, but because China was almost begging people to take their moneythere was an imbalance between the rate at which governments were deleveraging and the rate at which companies were upleveraging - a fatal imbalance as it turned out. Governments of all colours bought into the idea that low taxes automatically 'created wealth' and then when the Chinese saw it was all going pear shaped and refused to continue to fund the speculative boom in property prices it all came tumbling down.

Dave is learning exactly the wrong lesson from this. The proper lesson is that governments should be a brake on an
economy that is booming and an engine for an economy in recession - for some reason Dave thinks we need to apply the brakes when the car has stalled and the engine has siezed up.

I have used the car annalogy to describ the state of the country as well. It seems more evident by the day that the only concern of govornment is to maintain the facade of the car instead of repairing the functioning parts. A 4 stroke engine where only two pistons function, and a chasy and crank shaft that is cracked, held together with plasters and hemroging oil! In stead of stopping the car and replacing the engine (preferably v8) they continue to add oil and fule to an inefficent system. Not very hopefull for the future of the country.

Just a thought on markets. Grain (grasses) and water should be protected from Market speculation and trade profitering! Any one that disagrees deserves the death penalty! Speculation/gambling with basic essential commodities is criminal!!
No excuss for people starving on this planet!

[Cactus Jack]

Guest unfortunately the only ever attempt to protect grain from market speculation caused quite a lot of death.

Admittedly Stalin's projections were over-optimistic, his investment in production lacking and killing off half the peasantry didn't exactly help so perhaps a different system would do better - however I would agree without equivocation that all utilities (gas, water and electricity) should be publicly owned

[spicy]

Is that a direct quote from Dave or not?