Sunday 20 September 2009

Osborne right on tax; Wrong on sentiment

Watching the news today and the spin from both Labour and Tories you can tell both parties in the UK are scenting blood and what to generate some headlines for their upcoming conferences.

All you see on the TV news and in the papers is pure spin. The truth is the numbers released by the treasury are accurate. In 3 years time to try and balance the budget there needs to be a 30% increase in income tax under current plans.

Whether this comes to pass or not is not the point, the point is the budget reduction is going to require some very, very painful sacrifices; it seems the politicians are warming to this theme.

However, an election will not be won on negativity and promises of scrapping jobs and services. A vision of a better country, with lower cost services and happier people needs to be sold. None of the UK political Parties have grasped this yet; the one to do so may win the election.


Anonymous said...

Cutz, Smutz.

I reckon QE will approach £300B total.

More cuts down the road will need looser monetary stand to balance the effect.

The transition from attempts to reflate to previous levels, to resetting all bases at lower levels, will be very painful

Frankly, I don't believe the politicians, of whatever shade, will have the bottle.

The £ will be sacrificed. It will become an international race to the bottom, and a contest to find the biggest asset bubble.

Once started, QE will be f*cking difficult to stop, since derivatives are still being written, previous issues remain unsettled, international bond, gilt, purchasers will require a premium that will collapse everything, IF the derivatives don't do it first!

That's the reward for global socialism, spendthrift political twats, BIS/central bank encouragement of derivatives, and politically imposed fraudulent accounting standards.- -A deliberate end run around all legalised business/banking standards, with political twats placing the taxpayer in the firing line rather than following bankruptcy laws!

Electro-Kevin said...

This can be a happier country. Anything to make us go back to basics and take head-on the corrupt and non-representative political elite which is oppressing us.

Mark Wadsworth said...

"painful sacrifices"?

What's painful about leaving the EU and sacking three million quangocrats and meddlers? (see also Budgie's 8 point plan here recently).

That would be an event of great national celebration, surely?

Trubes said...

Hello my friend .xxx,

CityUnslicker said...

Anon- erm, that pretty much sums up the most likely outcome. The pound will really take the hit.

MW - Well, if you were one of the non-jop occupiers with no transferable skills then I think you may not be celebrating this eventuality. Maybe you can I can just no invite them to the party?

Edindie said...

So what's the solution? Open a euros saving account?