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We'll Have To Go Begging To The Imf, Says Cameron

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http://www.independent.co.uk/news/uk/polit...on-1513416.html

Britain risks bankruptcy and a humiliating bailout by the International Monetary Fund (IMF) because of Gordon Brown's borrowing, David Cameron said yesterday. With official confirmation that the economy has entered recession expected today, the Tory leader delivered his strongest warning yet: "If we continue on Labour's path of fiscal irresponsibility, at some point – and it could be very soon – the money will simply run out."

His speech to the Demos think-tank in London raised the spectre of the 1976 bailout, when James Callaghan's Labour government was forced to make deep public spending cuts in return for a £2.3bn loan from the IMF.

His remarks are bound to provoke Labour accusations that he is running the country down. Mr Cameron insisted he was not predicting a date by which the Government would "end up back at the IMF". But he added: "What I am saying is that we are running the risk of those things happening and those are risks that no government should responsibly run."

The Tory leader added: "We are borrowing, according to the Government's current estimates, 8 per cent of our GDP in the next financial year. That is the same percentage that Denis Healey [the then chancellor] was borrowing when he went to the IMF in 1976."

In his speech on "progressive conservatism," Mr Cameron suggested that an incoming Tory government would not adopt Thatcher-style spending cuts which could "give rise to anger, hurt and social division," but would address the economic problems "in a way that brings the country together, not drives it apart".

As in 1976, investors' concerns are putting sterling under severe selling pressure. So far the depreciation of the pound – down to 23-year lows against the dollar and the subject of discussions within the G7 – has failed to bring in more export orders. UK car production has slumped 47 per cent on last year, it was revealed yesterday.

The human costs of the downturn are being laid bare. Repossessions almost doubled in the third quarter of last year, according to the Financial Services Authority. A total of 13,161 properties were reclaimed by banks and building societies during the three months to the end of September – 92 per cent more than during the same period of 2007, with arrears also escalating. An increasing number of families are turning to their local authorities to house them, with the number on council waiting lists now 1.77 million – up 100,000 on last year.

"With the banks overstretching their credit facilities, it could mean that in the coming months that councils will have to help pick up the pieces," the Local Government Association's housing spokesman, Paul Bettison, said.

I don't think the IMF can turn this mess around now.

I think we'll need a bigger loan that the £2.3 we got last time.

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Camo is being slammed for these comments saying that they are badly timed and are not helping us during these dark days. Yeah lets do a Brown/Darling and say everything is alright and the green shoots of recovery can now be seen.

FFS :angry:

Edited by DoctorJ

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Will there be much of a queue? Given the british love of an orderly queue, there will probably be a lot of pushing in by other countries, and a lot of mumbling complaint from the british delegation. The shutters will come down just as we get to the front.

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"Talking the country down" = Ban dissent as treason.

Did you see how happy Caroline Flint was to hear "Govt of National Unity" and "Pulling together" discussed last night? Anything to suppress exposure of their idiocy.

And, yes, the IMF is for failed small states, not for collapses of top 5 economies. What happens in the commercial world to a failing large business is that it either goes bust, or more commonly a large competitor likes the look of its portfolio and takes it over. I think we might be worth a low-ball bid from China; we have good location and a compliant population who could be easily turned to the right opinions. Admittedly we have a rubbish business culture compared to them but I'm sure their superior management could turn that around.

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"Talking the country down" = Ban dissent as treason.

Did you see how happy Caroline Flint was to hear "Govt of National Unity" and "Pulling together" discussed last night? Anything to suppress exposure of their idiocy.

And, yes, the IMF is for failed small states, not for collapses of top 5 economies. What happens in the commercial world to a failing large business is that it either goes bust, or more commonly a large competitor likes the look of its portfolio and takes it over. I think we might be worth a low-ball bid from China; we have good location and a compliant population who could be easily turned to the right opinions. Admittedly we have a rubbish business culture compared to them but I'm sure their superior management could turn that around.

Err China is in deep doodoo too (overinvested in productive capacity that no-one now wants to utilise). I think if you look at Barc you will see that our fate lies closer to home, Sharia law, here we come!

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Err China is in deep doodoo too (overinvested in productive capacity that no-one now wants to utilise). I think if you look at Barc you will see that our fate lies closer to home, Sharia law, here we come!

It's all relative; China has vast reserves and would benefit from having an EU base from which to work. Our Middle Eastern friends have a collapsing oil price to think about too.

And I did say low ball; with the state of GB finances I think a nominal bid which takes on the debt (easy for China) could have merit. £1 and I'll take it off your hands?

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It's all relative; China has vast reserves and would benefit from having an EU base from which to work. Our Middle Eastern friends have a collapsing oil price to think about too.

And I did say low ball; with the state of GB finances I think a nominal bid which takes on the debt (easy for China) could have merit. £1 and I'll take it off your hands?

In my experience of these things (admittedly in a business context rather than an intergovernmental one) that only works if there are assets to strip, or liabilities that can be renegotiated down; most of our assets have already been sold off to the highest bidder, so its the liabilities then..........public sector pensions probably the lowest hanging fruit, I would think.

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It's not often I agree with anything Cameron has to say, however I find it difficult to disagree with anything in that article. :ph34r:

Well you can start by disagreeing with the utter tripe about some supposedly socially superior method of spending cuts cf. Thatcher's days. Everyone on here knows that this crisis is far, far worse than the early 1980s and will call for commensurately deeper slashing of big government.

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http://www.guardian.co.uk/politics/2009/ja...ordon-brown-imf

Gordon Brown today dismissed as "ridiculous" a claim from David Cameron that Britain's economic plight was so dire that the government could be forced to go to the IMF for a bailout.

In an interview on BBC Radio 4's Today programme to coincide with the official confirmation today that Britain is in recession, the prime minister hit back at Cameron for suggesting that the government could have to make a humiliating appeal to the International Monetary Fund in the way that Labour did in the 1970s.

In a speech yesterday the Conservative leader said that the IMF option was a possibility because Britian was at risk of running out of money as a consequence of Brown's policies.

But Brown dismissed this idea strongly.

"I think this is ridiculous behaviour on behalf of opposition parties. The situation in Britain is this, that we have low public debt, that we have low inflation, wages are under control," he said.

Stressing that the recession was caused by international factors, the prime minister went on: "I do feel that it is only if you properly understand what the situation is, if I may say to our opponents, that you can actually deal with it."

Brown said that the government had taken action to stop the banks collapsing, to get more money to families and to get the banks lending again.

"We are fighting this recession with every weapon at our disposal. We are building the foundation stones of a recovery plan that is specifically designed to get Britain through these difficult times."

In the course of his interview, Brown also:

• Insisted that the current recession was "a completely different kind of event" from previous recessions, because other British recessions were caused by domestic inflation whereas the current one was caused by a global banking crisis.

• Said that the length of the recession would "depend on the degree of international support" provided by other countries. The measures taken in Britain would have "twice the effect" if matched by similar fiscal stimulus packages elsewhere around the world.

• Played down suggestions that the bank rescue plan would place an unreasonable burden on the taxpayer, saying it involved "loans that have to be repaid" and "fees that are taken [by the government] for insurance services'.

• Dismissed the comment by Jim Rogers, the high-profile investor who this week urged people to sell sterling, saying: "If you think we are going to build our policy around the comments of a few speculators who want to make money out of Britain, you are very, very wrong indeed."

• Described the Financial Services Authority as "one of the best regulators in the world, not one of the worst".

• Repeatedly refused to admit that he was wrong when he said as chancellor that there would be no return to boom and bust. He said the current recession was caused by a global financial crisis and therefore "quite different from anything we have dealt with before".

During the interview Brown was asked if he accepted that he had made any mistakes during his time as chancellor. He said that his priority had been to get inflation down, and that this had been successful, but he acknowledged that he had not anticipated what might happen in the event of a "complete market failure" of the kind the world is experiencing now.

Brown repeatedly stressed that global factors, particularly the "lax standards that were allowed to develop in the United States of America [in the sub-prime market]" were to blame for the crisis.

He went on: "The lack of transparency in some of the non-banking institutions was such that no one could spot what was happening."

And he rejected the suggestion that he should have imposed tougher banking regulation in the UK. "For the last 10 years people have been telling me there's too much regulation, not too little."

Only fair to have Ponzi Browns considered response.

Cameron is an idiot after reading what Brown had to say.

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Well you can start by disagreeing with the utter tripe about some supposedly socially superior method of spending cuts cf. Thatcher's days. Everyone on here knows that this crisis is far, far worse than the early 1980s and will call for commensurately deeper slashing of big government.

It is most refreshing to hear someone in parliament calling for spending cuts and not further borrowing, printing or heads in the sand. I agree that even larger cuts are needed, but it would be suicidal to announce that to the general population right now, after all we are only just officially in recession and our great government see green shoots ahoy as reported by lookout Vadera in the crows nest.

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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