Monday, February 25, 2013

UK loses it's AAA rating, Osborne loses the argument

...British people losing their future?

 

UK Loses its triple-a status

 

The only silver lining is that now there is absolutely no doubt that you simply can't cut your way out of a recession. Preach doom & disaster, cut public services back to the bone, lay off thousands of workers then act surprised when no-one goes out and buys a new car.

 

Osborne’s economic strategy was, from the beginning, pure arrogance and hubris. Yes, he inherited a massive structural deficit that needs dealing with but he also inherited a growing economy. The thing that damns him and will always be held against him was that he stood-up and announced he’d be that man who would deal with the deficit within a single parliament. This is the proof that his ego was the only thing driving the Conservative economic strategy.

 

Why a single UK parliament? Is it, by some amazing coincidence, the exact same length of time needed to safely and sensibly deal with a deficit of that size? OR was it sneering arrogance and ego and a disregard for the misery and suffering cutting at that speed would cause.

 

The economy is no heading into a treble dip recession and this is going to be one of the longest economic depressions in history. The only idea Osborne has had from the start has been to cutting spending, never even a nod to getting income up. Ultimately you have to conclude he is sitting there staring at the falling GDP and thinking “When will these people start dipping into their trust funds”.

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