No New Stimulus? (ft)

Wookster

It looks like Gordon is eating humble pie:

PM backs away from new UK stimulus

Gordon Brown signalled that Britain would not announce a big fiscal stimulus in next month’s budget, as the failure of a gilts auction on Wednesday underscored concerns about the impact of further borrowing on the deteriorating public finances.

The British prime minister has consistently advocated using next week’s G20 summit to agree a global fiscal stimulus – as demanded by Barack Obama, the US president – but he has been boxed in by dire public finances in the UK.

He appeared to respond to pressure from Alistair Darling, his chancellor, and Mervyn King, Bank of England governor, in conceding on Wednesday there was little room for Britain to announce a second wave of tax cuts or spending increases.

Speaking in New York, he sought to shift the political focus from a fiscal stimulus to other mechanisms intended to kickstart the economy, amid forecasts that the UK deficit could rise to 11 per cent or 12 per cent of gross domestic product next year.

(the article continues)

http://www.ft.com/cms/s/0/ac24922e-196b-11de-9d34-0000779fd2ac.html

Perhaps he is finally beginning to realise the the folly of his (im)prudence during his reign as Chancellor. The only question is, will he be able to survive the next year maintaining the horrendous deficit or will the markets deliver another resounding "no you can't".

ad9898_3

He's increasingly becoming a lame duck, and is totally out of touch with reality, when will he learn, you can not spend your way out of a recession, but what you can do is make it a whole lot worse and whole lot longer, which is exactly what he is doing.

We are so deep in the mire at this time, that people are forgetting that when we do see a glimmer of light at the end of the tunnel, we will be hit with the tax bill which will set back our recovery by years. He built his 'no more boom and bust' economy on a mountain of debt, and the only way he can get over this in the short term, is to add more debt.:rolleyes:

Wookster

ad9898 wrote: »

He's increasingly becoming a lame duck, and is totally out of touch with reality, when will he learn, you can not spend your way out of a recession, but what you can do is make it a whole lot worse and whole lot longer, which is exactly what he is doing.

It must be so embarrassing for him, it he wasn't on some mad crusade to "save the world" he could just sulk in a corner somewhere but he's really asking for a public humiliation the way he's carrying on.

lostinrates

Wookster wrote: »

The only question is, will he be able to survive the next year maintaining the horrendous deficit or will the markets deliver another resounding "no you can't".

Actually, its not my only question!:D

I was fairly sure that further imo dangerous fiscal stimulus remained on his agenda. My next question is, what does he plan now. I'm hesitant to spend or the same reason I imagine a lot of people are: the speed, the uncertain future plans of the government. I'm aware sitting on our money is not great for deflationary sprial, but of course, that has been seen not to be the problem it was predicted to be this week, but until some sort of longer than tomorrow initiative is both announced ANDcarried through I feel that the direction from above is unclear and indecisive, and don't see how we the little people can take decisive action with our money and spending until this changes.

So, what now?

ad9898_3

Wookster wrote: »

It must be so embarrassing for him, it he wasn't on some mad crusade to "save the world" he could just sulk in a corner somewhere but he's really asking for a public humiliation the way he's carrying on.

Did you see him yesterday in that interview ? he was a complete embarrassment, stuttering and stumbling over his words (apparantly China has "200....200...200.... re....reserves", reserves of what ??? cabbages ???, bananas ???), when the camera panned out to the audience, they were all like !!!!!!?

Niksan

Which interview ? is there a linky on the web I can look see ?

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Here is some of it, I warn you this is his most communicative bit.:D

http://www.youtube.com/watch?v=1CYMibGTlCA

Wookster

ad9898 wrote: »

Did you see him yesterday in that interview ? he was a complete embarrassment, stuttering and stumbling over his words (apparantly China has "200....200...200.... re....reserves", reserves of what ??? cabbages ???, bananas ???), when the camera panned out to the audience, they were all like !!!!!!?

I did see that. The man is a bungling moron. He doesn't have a dam clue! If he wasn't PM it would actually be quite funny but the damage he has inflicted (and continues to inflict) is enormous.

Heyman_2

One thing I will say for David Cameron - he is reasonably articulate and I wouldn't imagine that he would as consistently smug as Brown has been in various inappropriate situations e.g. the MEP videos posted today, the time he jokingly asked 'has another bank fallen?' when a journos mobile rang (wholly inappropriate given the catastrophic situation) etc etc

I'm sure you can all give several more examples!

Old_Slaphead

I wonder how history will remember the Blair / Brown era in about 50 years - presumably a casebook study on how not to govern a country.

Niksan

It's probably going to be about 50 years when labour get back in if you ask me