Yesterday I asked if there wold really be another budget under Alistair Darling, many of you seemed to think not. Regular readers here will know that here at C@W we are in awe of the power of markets. Who could not be after htis latest financial crisis has pushed the world into its worst economic period of 2 generations?
This letter today though to the Times shows that those in the City are starting to get nervous about a Tory victory. For with Labour lie and spend approach the country will be begging from the IMF before the year end if they win an election. I don't say this because I want to scaremonger, it is just an analysis of where the country is; 13% deficits are simply unacceptable for another yearor two. Even a plan to get it down to 6% over 4 years is a below a bare minimum requirement. Just look at Greece this past fortnight if you want to see where a country gets too when it faces-off against the Market.
The economists realise this and they also realise the unsaid truth; unsaid by any party. That there are plenty of cutbacks, on pay and pensions and on non-jobs that would not add substantially to the lowering economic productivity. On the negative side, even Ken Clarke has talked about tax rises, but where can the UK go from here, we are already one of the highest taxed economies in the Western world?
Perhaps this intervention will have the effect of concentrating minds of voters in the UK; lying labour may say all the right things an the Tories are not perfect by a long way, but given the choice only one is a vote for gauranteed economic crisis.