baldysblog.co.uk

My Reaction

Excellent stuff by John Rentoul. Yes I think that the simple truth is that people want to stick their heads in the sand and don’t want to face the reality that the current level of spending is unsustainable and always was.

Labour admitted this years ago with the appalling PFI scam which simply meant that they acknowledged tax revenues couldn’t cover capital expenditure (investment) so, get the private sector to fund the project on a guaranteed lease back – mortgaging the future of the taxpayers of the UK as yet unborn. Mortgaging the future has been the hallmark of 13 years of Labour.

Still, if the British public want to try and ignore reality, let them the consequences could be quite amusing and I doubt whether a Brown led Government would last two years before there was blood on the streets and Labour politicians hung from lamp-posts. The people get the Government they deserve and let’s be honest, from Cameron’s point of view, this would be a very good election to lose because winning it and doing what is required to sort things out will just make him and the Conservatives very unpopular whereas two further years of Brown and massive civil disturbances will put the Tories into “Saviour” status and a landslide at the Election.

We have a floating currency, whoever wins this Election will either have to take control and make cuts or, it will be done by the currency markets via a substantial further devaluation of Sterling and the UK paying exorbitant interest rates on Government Bonds as it raises the money it needs to keep afloat.

Put another way, if you are a Brit who has retired abroad and your pension is paid in Sterling, overnight your spending power will halve. If you have a ‘second home’ in France or Tuscany, you will barely be able to afford the ferry or air fares. In the UK, Petrol will double in price, imported cars, wine and so on, we will become a very low wage economy and pretty much on a par with the Far East. All the desirable properties and land in the UK will be owned by foreigners because buying in the UK for them will be cheaper than Bulgaria or Romania.

Yes, the electorate may run away in May but the Economic Hounds of Hell are already on our tails and sooner or later will have to be faced, we really can’t hide under the duvet on this one.