Lots of discussion today about a Government Plan 'B' for what to do in a slow down. the clear answer more Quantitative Easing. Labour are trying to score some very weak points from this, they are so lucky the Lib Dems have imploded as their own positions are beyond weak.
However, two graphs below demonstrate what the real Plan A is.
The above shows the dire state of UK finances over the last couple of years and the non impact thus far of the new administrations cost cutting measures. Below UK inflation:
As we can see, inflation has been allowed to accelerate as we get into more debt, this has the handy function of keeping the real level of debt down for the Government. All the while making the population all the poorer. I can't see this situation improving for years - higher inflation here we come; get those wage demands in!