25 Jan

“Some of the Coalition’s initial cuts in public spending may have harmed the economy,” Nick Clegg has said.

A) The word “may” could indicate a probability of as little as 0,000000000000001 in a thousand trillion, or indeed much smaller, so it is essentially meaningless.

B) Is it just me or are these people both stupid and wilfully malevolent?

Of COURSE cutting public expenditure means less economic activity by the state, but THERE IS NO ALTERNATIVE. Or rather the alternative is:

  • to spend more, but we have no money, which means

  • to BORROW more which means

  • to increase the debt

  • to pay more interest

  • to lose more credibility

  • to have our credit rating cut

  • to pay more interest on ALL borrowing

  • to get into a death spiral of debt, interest payments and face the SAME choice of ….

  • EITHER cutting expenditure OR borrowing more

  • … at which point we return to the beginning and start over

  • And “NO”, printing money is no answer, as that would lead to hyperinflation PLUS economic collapse

Previous governments have CATASTROPHICALLY overspent and overborrowed. Clegg’s insinuation that there is some easy way out of this is IDIOTIC.

But then, what else do we expect from him. He may or may not recall that the current French President (BEFORE being elected of course) attacked “austerity” and promised to “change things”, but as SOON AS HE got into power he had to apply the SAME austerity programme as the dreaded Sarko. If he hadn’t, France’s borrowing costs would have gone throught he roof leading to economic collapse, vast inflation and massive social and economic misery (and it’s BAD ENOUGH already.)

There is no quick fix to DECADES of UTTERLY INCOMPETENT, COWARDLY and indeed CRETINOUS mismanagement of the economy. Quick-fixes will ONLY make things WORSE in the long run – as if of course people like Clegg could be bothered about the long run.

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Posted by on January 25, 2013 in Britain, European Union


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