Tuesday 15 September 2009
Brown speaks the truth at last
He does not acknowledge this of course in his interview with Robert Peston, but he make a damning statement:
"PM [Gordon Brown]: ...you cannot justify in a period of difficulty. We're raising national insurance by half a percent. These things are being done so that we can pay for our public services, while at the same time making sure that the economy continues to reduce the deficit. I think you'll end up with a situation where the debt levels in all major countries are roughly the same - Germany, France, America and Britain - and I think you'll get an agreement amongst all these countries about the right timing for us to take the further action that is, that is necessary..."
the important fact missed out is that our public borrowing was 50% less than that of Germany or France and even about 20% less than the USA on a standardised basis. So the Prime Minister is admitting that we have coped with this crisis half as well as our European neighbours.
That is a pretty bad attempt at 'coping'. Long-term it is a disaster, the only way out is inflation and if we become like Japan,the bond holders won't even allow that. What a terrible Government Brown has presided over.