August 2nd, 2011

Osborne’s Bumpy Ride

Though both the IMF and the Treasury are quick to stress that deficit reduction is the right thing to do, it’s not going to be as pleasant as the Chancellor will have us believe. Ronald Reagan asked to be judged on whether you were richer at the end of his medicine or before, but George will probably want to avoid that particular campaign slogan, given the IMF warn that British households will apparently be £1,500 worse off each year of the slowing recovery.

It’s still steady as we go though, unless the UK experiences “a prolonged period of weak growth and high unemployment”, when an additional plan could be called for. Not the one Labour drone on about though, with a slow down in cuts, but Plan A+, with added tax-cuts to complement the state trimming…

Which isn’t the worst idea Guido has ever heard…


131 Comments

  1. 1
    • 7
      misterned says:

      Actually this article is about the Chancellor taking a different view to the one spouted by Balls, and followed for so long by Obama to such wondrous effect.

      Thank fuck the Tea Party in America now has enough power to stop Obama completely fucking things up. Although they have only managed to buy themselves a little bit of time, perhaps rational heads will prevail yet. Much more radical cutting required.

      Like

      • 11
        Anonymous says:

        The spending implemented by Obama pales in comparison with W.

        Nobody seemed to mind it then, though. “Deficits don’t matter” remember….

        Like

        • 18
          Fowler's Archaic Usage says:

          Or “spendng implimented …” :-)

          Guido, Neo or Original Flavour, your posts would be a lot more authoritative if you learned a bit about spelling, grammar, syntax, shit like that.

          Like

          • George Osborne says:

            For God and Country! Obviously not for Britain but I srael and not for God but G_d. Now, Lady Serena promised me oodles of young boys.

            Like

          • Obama says:

            Mah fellow Amurrikins. Ah brought you Obamacare. Ah brought you the fiscal stimulus. Ah brought you bin Laden’s head on a platter. And ah brought you debt. Ah came that you might have debt, and have it more abundantly. And I say to you this day, I will not stray from the path of Debt, no, not though it rise to ten trillion dollars, twenty trillion dollars, an hundred trillion dollars! A-men!

            Like

          • Anonymous says:

            Obama says: August 2, 2011 at 9:57 am

            Why haven’t you controlled the banks? Sooner you and the idiots we have in UK go the better it will be for the two countries.

            Like

        • 25
          Phantom says:

          Obama’s $8bn to Bush’s $4bn?

          Pull the other one.

          Like

          • Phantom says:

            8 Trillion, 4 trillion… sh1t, such big numbers.

            Like

          • Anonymous says:

            75% of it will be bought by Federal Reserve and Federal Reserve is owned by US government, it is not actual debt.

            Like

          • Phantom says:

            “It’s not actually debt”

            Oh, so no interest is paid taken from the productive economy and destroyed purely by the fact that the money has already been spent and only a fraction invested that will never create the returns even to cover the interest itself.

            That’s the lunacy of Keynesian economics. It’s always about demand, never investment, always about scarcity never about prices.

            That’s why the US is screwed and so is the UK.

            Like

          • Domestos says:

            Federal reserve is privately owned
            It is not owned or controlled by the us government

            Like

        • 32
          Anonymous says:

          Bank of England (BOE) owns 25% of UK debt, 6% of US debt, etc. BOE also own large amount of private sector debt.

          As BOE is owned by the government, once you net these debts off with UK national debt there is hardly and debt left.

          Both Labour and Tory governments wants to keep super rich rich and every one else poor. BOE gives banks money at 0.5% interest and these banks give it to public at 5% plus. These super profits are used to give massive bonus, it doesn’t even go to share holders.

          Like

          • Selohesra says:

            “Both Labour and Tory governments wants to keep super rich rich and every one else poor.” – works for me:)

            Like

        • 36
          misterned says:

          I remember writing at the time of the GW Bush Presidency that his administration was NOT a conservative administration, but a lefty neo-con con. NO republican administration worthy of the name would have created the biggest biggest state bureaucracy in America’s history.

          The republicans were taken over by the neo-cons who ran the country for the benefit of their corporate cronies and the massive war machine. They ran up the debt as fast as they could. There is no real difference between the Bush and Obama administrations. Both are continuing the wars, Both spend a fortune and increase the debt, Both are continuously eroding the liberties and freedoms of the American people. Obama carried on directly from where Bush left off.

          The only real conservatives left in the republican party are the Tea Partiers.

          Like

          • Anonymous says:

            Its not a real debt, its money printed by Fed and given to US government. If banks go down again they will print more money to save the banks.

            Its a con to transfer more money to super rich from every one else.

            Like

          • sockpuppet #4 says:

            What faith you have.

            So if the TPers get more power they won’t get manipulated and lobbied by the same old interests, or engage unwise populist measures to keep their % of votes up.

            Like

          • Anonymous says:

            In the time Obama has been president, he hasn’t controlled the banks.

            Like

          • Archer Karcher says:

            I think you will find the banks own Obambi’s arse and call all the shots.

            Like

          • Grumpy Old Man says:

            @ sp4. I think you will find that the TP-ers austerity program is a populist measure, certainly in fly-over america which is comparitively untainted by the socialism virus.

            Like

      • 26
        Spend spend spend says:

        I am just sorry that they capitulated to Obamarama. They should have stuck to their guns.

        Chuka should have arrived by now to give them the benefit of his wisdom.

        Like

        • 58
          Anonymous says:

          It will only be solved when goods and services are given for goods and services. Printed money is the problem, people are giving some thing valuable to some thing worthless.

          Like

          • David Laws Lib Dem fiddler says:

            Out of the EU NOW. We can not afford to be in it. The govt can not even tell us what our contribution is each year. ONS and govt can not agree a figure. £42 billion trade deficit last year, people in the EU buy what they want irrespective if the country selling the goods is not in the EU. MEPs corrupt little bunch who are profiteering from the EU scam.

            Westminster like the EU have one set of laws for politicians and another set of laws for the public. Jim Devine, Chorley and the rest are getting away with the proceeds of their crime. Why was his second home not taken from him under the Proceeds of Crime Act??? Why is he allowed to keep the goods he stole from the taxpayer. The first consideration for punishment is restoration to the victim ie us the taxpayers.

            Come on Guido, start asking and publicising the travesty of this situation. Any other thief in this position would have the goods taken away from them- why not a thieving MP when he was found guilty!! FFS.

            Like

      • 60
        Astrologer says:

        last five Democratic Presidents (Bill Clinton, Jimmy Carter, Lyndon B. Johnson, John F. Kennedy, and Harry S. Truman) all reduced public debt as a share of GDP, while the last four Republican Presidents (George W. Bush, George H. W. Bush, Ronald Reagan, and Gerald Ford) all oversaw an increase in the country’s indebtedness.

        http://www.angrybearblog.com/2007/12/republican-party-and-national-debt.html

        Like

      • 84
        Sophie says:

        * Small state

        * Low taxes

        * Minimum interference in the economy by the Government

        Third way neo-socialists like rusty Dave & Osbourne just dont get tried & tested Conservative values.

        Blue Labour out.

        Like

      • 87
        Bill d'Sarse says:

        Trillions and f*cking trillions. OMFG!!!

        Just look at what trillions looks like.

        http://usdebt.kleptocracy.us/

        Like

      • 94
        Backwoodsman says:

        According to the beeboid Toady programme this AM, it costs £3,000 pounds a week to send young scrotes with a drug problem to a live in treatment centre , I’ll repeat that, £3,000 a week.
        Why not just send the little darlings on a bursery to public school ? It would be a third of the cost and they’d have a chance of learning something useful, and meet a better class of drug user.

        Like

      • 127
        Rage Against the Political Elite says:

        Political Knackers are working for the State, and Not stopping the excesses of it. How did we get into this State of affairs? I suggest LIMP WRIST WEAK INDIVIDUALS, and Politcal compliance and aggreement. IRAQ, was a blatant LIE and the People Knew, Why didn’t the Poltical Class, or did they and they just liked to comply. Did they forget why we voted for them.

        Like

      • 129
        Giles Farmer says:

        Capitalism as done what it is supposed to do, and that is make the minority of the already rich richer and to fail the vast majority of the poor to make them poorer!
        The horrible state of the world today in economic and ecological terms is because of the massive failure of the uncivilised capitalist system that is thrust upon us dictatorially!

        Like

      • 130
        Greychatter says:

        U.S. total debt $1,027,496 – per tax payer

        http://www.usdebtclock.org

        Like

    • 19
      So what? says:

      But there is no story there. It says there was nothing unusual. Don’t you delete your old emails?

      Even local authorities weed all their files after 5 years.

      Like

      • 41
        The true scale of local goverment corruption is the greatest unreported scandal of all says:

        Which is handy if you have been pouring over £2m of public money into a corruptly run money-pit like O-Regen in Waltham Forest since 2003: a place so shoddy that even Hackney Council called the police in when they had done ‘business’ with them. No arrests yet, of course.

        Like

    • 23
      fat paddy says:

      i’m pissed. up to me neck in rent boys. dreaming of the z ionist hero dish ABB.

      Like

    • 31
      because? says:

      “worse off each year of the slowing recovery.”

      Like

  2. 2
    Drop a Daisy cutter on the BBC says:

    They need to cut public spending, better to pay a lesbian condon advisor £50 a week on benefits that 50K a year to spout crap.

    Need to cut fuel duty, 30p a litre please

    On and scrap the TV tax, save us all £150 a year

    Like

    • 5
      Andy Gray says:

      Paul Condon, former Met Commissioner?

      Like

    • 8
      lola says:

      Quite. Listen Georgie Porgie. It’s very fucking simple. CUT TAXES AND GOVERNMENT SPENDING NOW! As you say better to pay the 6m odd redundant state ‘workers’ fifty quid a week on the dole than fifty k a year to do fuck all.

      Like

      • 80
        ichabod says:

        But Boy Dave wouldn’t like it, simply because the LidDems would cry foul, take their ball home and sulk. And Boy Dave hasn’t got the backbone to tough it out.

        Like

    • 17
      Bernie Ecclestein says:

      where’s my fucking £600 a year for watching Santander race Vodafone and a drinks company? i need the extra cash as the daughter’s on the breadline, as she’s just bought her first house – America’s richest, at $108 million.

      shalom.

      Like

    • 41
      Gonk says:

      Pleased to see the ‘ Fifth Columnists ‘ commie
      Charidee industry is starting to get the hammer.
      Bout time. Another sector completely hijacked
      by the Blair and Brown horror.

      Like

  3. 3
    Evil Landlord says:

    I’ve beaten Billy Bowden to the first post !

    Like

  4. 6
    Seth the Pig Farmer says:

    Cut NI to offset the cost to employers of forthcoming automatic enrolment to pension schemes.

    Like

  5. 9
    The Big One says:

    Real cuts have yet to start. Coalition spending is higher than when the Brown shirts were ejected.

    Like

    • 35
      MrAngry61 says:

      The real question is – will the real cutting ever start?

      Like

      • 39
        misterned says:

        According to the BBC they started straight away. The BBC have been fearmongering 24/7/365 about tory cuts since Cameron first put his feet under the desk at No10 and yet they still occasionally come out with, “When the cuts really start, then people will really begin to hurt”

        Like

  6. 10
    Anonymous says:

    “Plan A+, with added tax-cuts”

    So you don’t care about the deficit level then.

    Like

  7. 12
    MI5 says:

    Guido

    You show Christine Lagarde in your photo

    She made her reputation doing this

    True…!

    Like

  8. 13
    EdMiliband says:

    Wesign!

    Like

    • 48
      Ed Miliband says:

      too far too fast…too far too fast…too far too fast…too far too fast…too far too fast…too far too fast…too far too fast…too far too fast…( ooh, nosebleed )

      Like

  9. 14
    Spud says:

    1. Sacking Huhn and ditching his self destructive policies would save a fortune.
    2. Not borrowing money to give in aid to nuclear powers or the corrupt (that’s most of Europe too of course)
    3. Don’t give billions to the EU so it’s unelected politburo can redistribute it to it’s chums whilst being ungrateful to those bad Europeans in little Britain that coughed up.
    4. Drop the 50p rate.
    5.And do some other clever stuff.

    Like

  10. 15
    Given Up says:

    He lost me the moment he said nobody on benefits should be on more than £26.000 a year.

    Like

    • 63
      MrAngry61 says:

      +1

      It’s fucking INSANE that benefits supplicants can receive more than professionally qualified graduates do.

      And the (admittedly infrequent) stories of families receiving £100,000s a year under the present rules is an affront.

      Like

  11. 20
    The Golem says:

    I wonder if the elegant lady standing beside GO should be considered a sinister presence. One of the gatekeepers of the NWO if ever there was one.

    Like

  12. 21
    sockpuppet #4 says:

    Oh no, my brain my brain. I read the headline, saw the photo, and thought of yesterdays “chattes” email.

    Mme Lagarde does indeed look a bit bumpy.

    Like

    • 123
      Afghanistan Banana Stand says:

      Be grateful it’s Mme Legarde in that pic and not McRuin
      The implications of that would be horrendous.

      Like

  13. 22
    Billy Bullcrap is the quickest poster ever! says:

    oh….. um… so I am not. Sorry.

    Like

  14. 28
    Pundit says:

    Pickles delivers yet again! Another 10% cut in housing benefit to layabouts and scroungers. He’s the only member of the government who’s anywhere near effective. Go Eric!

    Like

    • 51
      The true scale of local goverment corruption is the greatest unreported scandal of all says:

      10% is pathetic. The housing benefits cut does not effect the tenents – they never see the money. It is the Bentley-driving Labour councillors of Waltham Forest who need to be squeezed till the pips squeek. A quarter of all the Labour councillors in that corrupted borough make their money by manipulating the housing benefits system as landlords or agents for their relatives who are landlords.

      Like

      • 88
        Archer Karcher says:

        The housing benefits fraud is a truly all party affair. That’s why they are all reluctant to really take any effective steps to end the blatent taxpayer theft going on across the entire country.

        Like

        • 103
          HandsomeDavid says:

          And that is why we in the UK pay rents that are double that of Europe. The market is artificial with the amount of state manoey going into housing benefit distorting the market.

          How many houses you got Tony?

          Like

  15. 30
    Phantom says:

    Time for Plan A+

    Slash government spending by another 1% GDP.

    Slash direct taxes by 1% GDP.

    …and downgrade our EU membership to EEA status.

    Like

    • 44
      BillyBob.... says:

      Also, revoke ooman rights legislation, cut benefits, stop wasting money on our beloved asylum seekers, Uncle Tom Cobley and all……

      trim, trim, trim………

      a nice, neatly trimmed bush, nothing better !!

      Like

  16. 50
    Steve Miliband says:

    Who’s the bloke next to Osborne?

    Like

  17. 55
    Mornington Crescent says:

    Any Chancellor in Georgie’s position is going to get slaughtered by Labour/BBC, so he may as well do some serious expenditure slashing rather than fannying about at the edges as at present.

    A politically smart gesture would be to cut the reduced rate of VAT, currently applicable to domestic fuel, from 5% to 4%.

    Like

    • 59
      Slasher says:

      And then cut the BBC to the bone.

      Like

      • 70
        Mornington Crescent says:

        I’m coming up to my first anniversary without a licence (and a TV) – the best way to slash my BBC expenditure… by 100% in one fucking go.

        Did anyone notice any difference in the ‘quality’ of the Beeb’s news output during yesterday’s strike? I didn’t.

        Like

    • 85
      MrAngry61 says:

      Except I believe that there is a minimum level of ‘reduced’ VAT – once again the EU ties his hands.

      Like

  18. 57
    Lobster throttler says:

    We could ask that fucking balloon Cameron to chuck a few billion of our money at the yanks, he gives it to everyone else.

    Like

    • 98
      Archer Karcher says:

      Look, I’ve told you before, you have to feel ‘proud’ about your contributions to third world dictators personal wealth funds aka, aid payments.
      It is your duty to work hard so we can tax you more and tinpot dictators can then buy lovely new shiny personal execuive jets, paid for by taking your tax and spunking it away like there is no tomorrow. Ok?

      Like

  19. 64
    Sir William Waad says:

    Rather than a right-wing government or left-wing government, Labour or Tory, liberal or conservative, Keynesian or Hayekian, I would settle for a competent government, one whose members woke up every morning repeating the mantra “I will not do anything stupid today. I will not do something easy that will cause great problems in the future.”

    Like

    • 108
      sockpuppet #4 says:

      “I will not do anything that will lose votes today. I will not do something easy that will cause great problems next election”

      Like

      • 111
        Engineer says:

        You’d think that even politicians would realise that doing something easy that creates problems later is no advantage to them if they win the election, and then have to deal with the problems.

        Like

  20. 65
    Steve Miliband says:

    BBC 5 liars is doing a bit about the cost of going to football.

    Football will be the next big crash

    Like

    • 101
      Archer Karcher says:

      The game is awash with crooks, asset strippers and money laundering scams and has been for years. If one sport deserves to collapse entirely, it’s professional football along with, the overpaid oafs that infest it’s playing ranks and the crooks in the boardroom.

      Like

      • 113
        Hipster says:

        900 notes for a Liverpool season ticket, that will be sustainable when the Guardian decides its no longer ‘in’

        Like

  21. 69
    Anonymous says:

    it’s funny how the public can know the names and details of UKs top fraudsters below

    http://news.sky.com/home/uk-news/article/16041566

    although there appears to be a distinct lack of MPs on this list

    that is because it will be illegal for the public to know which MPs are defrauding the country – nice one IPSA – shitheads

    Like

  22. 71
    Dunderhead says:

    I know a lot of business owners, mainly small and medium companies, across may sectors

    everybody, without exception agrees there is no incentive AT ALL to stick your neck out to expand

    everything is fraught with legislation and extra cost – employing new people, eveing buying a company car

    most people I know are keeping their heads down and paying off debt

    Like

    • 106
      Engineer says:

      Which in the medium to long term, will help the economy. Having companies that are cash-rich, or at least not mired to the eyeballs in debt, will be a competitive advantage for the UK when the global economy does start to pick up.

      Doesn’t necessarily help much with the immediate crisis, except that it’s better for companies to tick over steadily than spend themselves into receivership when interest rates start to rise again.

      Like

  23. 72
    I don't need no doctor says:

    So what’s to do. Borrow more and run up a bigger labour defecit, or take the medicine and reduce the borrowing.
    We know what Miliband and Balls would say, but they, thank goodness, are not in government. Anyway labour speak, labour lie.

    Like

    • 104
      Archer Karcher says:

      Cameron & Co, are spending more than shithead Brown. There have been no real term cuts at all.

      Like

  24. 76
    Empty Child Ed says:

    I will wevolutionise Bwitain

    Like my father and his fwend Tony Benn… my idols…

    Like

  25. 78
    Trevors Den says:

    In fact – Ronald Reagan asked the American public in a 1980 presidential debate with Jimmy Carter, “Are you better off than you were four years ago?”

    So your starting premise is bollox. Osborne has not promised to leave people better off – in fact he has only promised austerity.

    The current economic circumstance and inheritance has nothing in common with America in 1980.
    it was appropriate in 2010 – but of course in 2001 and 2005 thanks to spend spend spend and borrow borrow borrow the public DID feel better off. its that spending mania which means that we are now paying for.

    So maybe Mr F you will amend your post accordingly

    ha fat chance.

    Like

    • 100
      sockpuppet #4 says:

      Its a great political stunt to say “are you better off”.
      Many people get older, accumulate more stuff, pay off their mortgage, get promotions.

      They said such things about 10 years of thatcherism, which was very true for me because in 1979 my personal wealth was limited to a few conkers, a goldfish, and a badly constructed airfix Gazelle.

      Like

      • 118
        A bloke of a certain age says:

        I see what you mean sockpuppet when Thatcher was elected my personal Wealth consited of several “well thumbed” copies of “Fiesta” and “Whitehouse” .Ah the memories 1970′s bush mmmmmm

        Like

  26. 82
    politics says:

    We keep telling you, tax cuts won’t be effected till nearer the next election, even though that may be way too late to have an economic effect.

    Like

  27. 93
    Engineer says:

    Osborne does have a tricky problem, at the moment. Public spending significantly higher than tax receipts, inflation higher than desirable, American and European debt crises stagnating the world economy to the point where growth looks likely to be slow or non-existent for some time.

    He needs to cut public spending (with the aim of eliminating the deficit), but cutting it faster than the private sector can take up the employment slack is undesirable. He needs to control inflation, but he can’t do much about world commodity prices, at least until the pound strengthens and reduces the cost of imports – but that would hinder exporters, who he needs to encourage now.

    Tax cuts would help to encourage the private sector, but he needs all the tax revenue he can get at the moment. We know from the 1980s that reducing some tax rates can increase tax revenue by stimulating economic activity. A gamble – but a far better bet than trying to stimulate growth by increasing public spending.

    Like

  28. 96
    Ah! Monika says:

    Germany buying up Greece as it privatizes. Now there’s a surprise.

    If at first you don’t succeed with guns…

    Zunächst?

    Like

  29. 97
    YorkshireLad says:

    Forgive me for being a bit dim, while accepting deficit reduction is of paramount importance, what about DEBT reduction? Or doesn’t this matter any more?

    Like

    • 109
      stun says:

      Well, obviously you need a surplus to do that. Once the annual deficit is paid down (Ha!) then an annual surplus will be needed to actually eat into the debt. Can anyone see politicians of any hue allowing a surplus, instead of embarking on their next costly vanity project? Regrettably, I can’t.

      Like

    • 110
      Engineer says:

      True – but you can’t start to erode the debt until you’ve got the deficit eliminated.

      Like

  30. 105
    pissed off voter says:

    O/T not a whisper in MSM about the ‘dear Freddy’ letter. Was it a hoax or are our would-be masters keeping it under wraps?

    Like

  31. 112
    Astrologer says:

    It’s easy, a coward’s approach, to cut rather than be responsible & make good investment which leads to growth & prosperity for all. From a good education comes a better chance to earn & contribute more to growth. From affordable housing & “retirement villages” releases capital into the economy without locking it in back-breaking terrorizing mortgages & pensioners with nothing more than a roof to take care of them or relying on “charity” is a loser’s cause. From good, efficient, health care, prevention rather than cure, comes less sickness waste.
    The knife is no long-term solution & will only severe some good ties & benefit a few who want something for nothing & that just won’t do in the 21st century.

    Like

    • 116
      Hipster says:

      If this were all true then the amount Brown spent in the last 10 years would have turned the UK into a paradise, its youth all leading scientists and geniuses, so why can’t half of them even read?

      Like

    • 121
      Engineer says:

      So where does all this ‘investment’ come from? High rates of tax on ordinary people and private sector companies, slowing their economic activity; or from borrowing – and we already have a debt crisis.

      It’s a complete myth that public spending syimulates the economy. It stifles it. If you don’t believe me, go away and think about it.

      Like

  32. 124
    wideangle says:

    Hmmm Tory tax cuts largely helped the rich get richer and shifted the burden of taxation onto indirect taxes which hit you and me unless we live in a hut and spend nowt. Labour of course with their complicated tax credits just squeezed the middle even more. Both parties have no agenda that helps your average Joe and Jolene.

    Like

  33. 125
    non believer says:

    Reagan eh Guido?

    Would that be the same Reagan who increased govt spending for 7 of his eight years in office, grew the size of federal government, negotiated with islamic fundamentalist terrorists and lied about it, gave an amnesty to 2.8 million illegal immigrants and managed to double the US deficit during his time in power?

    what great medicine that was…..

    Like

  34. 131
    Junius says:

    Guido,
    I cannot see the guidance I gave you on the proper uses of ‘compliment’ and ‘complement’ on this page, though I notice you have corrected your initial error. You complain that others do not acknowledge their debt to you. Are you not in this instance guilty of the same offence? Please re-instate my original comment.

    Like


Seen Elsewhere

BBC: It Was Guido Wot Won It | MediaGuido
Nick Robinson’s Britain First Selfie | Metro
Dyson: Leave German Dominated EU, Join EFTA |
How UKIP Won Rochester | Seb Payne
Labour’s Islington Problem | Harry Phibbs
Ed Lost More Than a By-Election | Labour Uncut
Labour the Biggest Losers in Rochester | Speccie
Thornberry a Gift to Farage | Nick Wood
Is Left Finally Turning Against EU? | Dan Hannan
Labour Votes Going Green | Guardian
UKIP Winning Class War | Tim Stanley


Find out more about PLMR AD-MS


Ralph Miliband on the English…

“The Englishman is a rabid nationalist. They are perhaps the most nationalist people in the world.”



Left on Left says:

The lefties are attacking because the panellist is a millionaire and lives in a London home worth upwards of two million. Someone had best tell them he’s called Ed Miliband.


Tip off Guido
Web Guido's Archives

Subscribe me to:






RSS




AddThis Feed Button
Archive


Labels
Guido Reads
Follow

Get every new post delivered to your Inbox.

Join 1,598 other followers