The Day Gordon Brown's Luck Ran Out
When the real story gets to be told, the long reign of Gordon Brown over Britain, will be explained by two words - spending and debt. The economy Brown inherited in 1997 was as orderly and successful as any in the world. Debts were lower than any time since WW2. Growth was rising. Unemployment low and investment strong.
Thirteen years later, Britain faces ruin. Government spending in 2009/2010 is over GBP 800 billion (not the GBP 620 billion claimed), with revenues around GBP 450 billion down from GBP 600 billion two years before. Revenues are still falling.
The markets have accepted all that has happened to date and taken it in their stride, allowing politicial leaders to keep face and claim that the 'recession' will soon be over.
But yesterday that all changed. The realisation dawned that the debts of the high spending countries, of which Britain is the world's most glaring example, are beyond anything that the countries can possibly cope with. The spending of the British government will need to come down by at least one third, and probably more as revenues keep tumbling.
Brown's expanded state is insupportable, and markets are no longer willing to look the other way.
There is no longer anywhere to run. Britain is locked inside the EU, which bars us from access to world markets. Read the piece below taken from the FT (no links as it's subscription), and feel the level of desperation in its words and the sentiments, coming from Mervyn King.
...
Thirteen years later, Britain faces ruin. Government spending in 2009/2010 is over GBP 800 billion (not the GBP 620 billion claimed), with revenues around GBP 450 billion down from GBP 600 billion two years before. Revenues are still falling.
The markets have accepted all that has happened to date and taken it in their stride, allowing politicial leaders to keep face and claim that the 'recession' will soon be over.
But yesterday that all changed. The realisation dawned that the debts of the high spending countries, of which Britain is the world's most glaring example, are beyond anything that the countries can possibly cope with. The spending of the British government will need to come down by at least one third, and probably more as revenues keep tumbling.
Brown's expanded state is insupportable, and markets are no longer willing to look the other way.
There is no longer anywhere to run. Britain is locked inside the EU, which bars us from access to world markets. Read the piece below taken from the FT (no links as it's subscription), and feel the level of desperation in its words and the sentiments, coming from Mervyn King.
...
You are almost as funny as the Dim one 
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