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Britain Faces ‘miserable’ Years Of Austerity

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Britain Faces ‘Miserable’ Years of Austerity, HSBC’s King Says

Prime Minister Gordon Brown’s efforts to rescue Britain’s banking system from the financial crisis has left the country facing “miserable†years of austerity, said Stephen King, chief economist at HSBC Holdings Plc.

“What we’ve already seen is a fiscal policy designed to provide a cushion to stop the kind of ‘Great Depression Mark II,’†King said in an interview on Bloomberg Television today in London. “But there’s a price for that cushion. That price will be higher taxes, cutbacks in public spending over the course of the next few years.â€

The International Monetary Fund last week urged Brown to adopt more ambitious plans to repair public finances ravaged by the drop in tax revenues from the recession and measures to save Royal Bank of Scotland Group Plc and Lloyds Banking Group Plc. Former Bank of England policy maker Willem Buiter said afterwards that Britain now faces a “huge national hangover.â€

“We’ll be living through a number of years, frankly, of austerity,†said King, who is HSBC’s managing director of global economics. “It’s going to be fairly miserable.â€

The Treasury predicts a budget deficit in the current fiscal year of 12.4 percent of gross domestic product, which would be the worst since World War II. Britain had an 8.5 billion-pound ($14 billion) budget shortfall in April, the most for the month since records began in 1993.

“The data are straightforward,†King said.“When we get into 2010, the U.K. will have a budget deficit up to 12 or 13 percent of GDP, which is an incredibly large number. We’ve not seen numbers anything like as big as that in the past.â€

Standard & Poor’s Ratings Services last week signaled that Britain may lose its top credit rating of AAA as it cut its outlook on the assessment for the first time.

Britain is “a country that has over-consumed,†Buiter said in an interview after S&P released its report. “The economy that the next government inherits will be a real poison pill.â€

Housing data is irrelevant in the shadow of this dark cloud.

2010 is going to be the year of pain. Rocky Balboa v Clubber Laing pain.

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The state is not infinite, only its levels of stupidity.

Indeed.

This idiot thinks that the state has to exist, all the bills have to get paid and we'll all just sit here paying 97% taxation or whatever it is voluntarily to pay off the bankers debts.

Not a chance in hell.

State failure - 100% guanrateed.

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Indeed.

This idiot thinks that the state has to exist, all the bills have to get paid and we'll all just sit here paying 97% taxation or whatever it is voluntarily to pay off the bankers debts.

Not a chance in hell.

State failure - 100% guanrateed.

Dunno about that, the UK taxpayer has a long and ignoble history of biting down and squealing like a pig as the incumbent chancellor applied the sand and performed the pelvic thrust.

The state made an example of Guy Fawkes (a particularly gruesome public execution) and the British haven't squeaked since. Nowhere else either really, unless you regard a bunch of dipshit pinko-commie creative arts students lobbing a few Molotov cocktails around in Paris in 1968.

There's a UK saying for it: "Put up or shut up".

How many protested against the Poll tax? or the Iraq invasion? And what good did it do?

"Government" is really just another name for "protection racket". And like the racketeers, you gotta accept dire consequences for your safety if you defy them. Freedom and justice are just smoke and mirrors. 'Twas ever thus.

Even if there is a state failure, another bunch of arseholes will take over. Meet the new boss, same as the old boss...

I think I'll become an MP. I will laugh and rub my genitals whilst voting for my next wage increase.

Edited by THEBIGMAN

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Britain Faces ‘Miserable’ Years of Austerity, HSBC’s King Says

Housing data is irrelevant in the shadow of this dark cloud.

2010 is going to be the year of pain. Rocky Balboa v Clubber Laing pain.

Didn't you see the Nationwide data today - who said there is a correlation between house prices and GDP?

www.economics.ox.ac.uk/members/andrew.farlow/Farlow%20House%20Prices%20and%20Consumption.ppt

undefined

Edited by threetimesdead

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Indeed.

This idiot thinks that the state has to exist, all the bills have to get paid and we'll all just sit here paying 97% taxation or whatever it is voluntarily to pay off the bankers debts.

Not a chance in hell.

State failure - 100% guanrateed.

I find your posts very interesting and entertaining

But it isn't going to happen

Because the State have all the guns

Do you have a plan B?

:)

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I find your posts very interesting and entertaining

But it isn't going to happen

Because the State have all the guns

Do you have a plan B?

:)

Plan B is to pull up the draw bridge

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I find your posts very interesting and entertaining

But it isn't going to happen

Because the State have all the guns

Do you have a plan B?

:)

The russian state had all the guns. So did the argentinian state.

by definition states have all the guns, they still collapse.

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The russian state had all the guns. So did the argentinian state.

by definition states have all the guns, they still collapse.

MVD -> NKVD -> Checka -> GPU -> KGB

Tsarist ... Stalinist

State collapse is always illusory. You should know that Injin.

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MVD -> NKVD -> Checka -> GPU -> KGB

Tsarist ... Stalinist

State collapse is always illusory. You should know that Injin.

I do.

What it means si that the teachers, pensioners, unemployed etc don't get paid.

The "core" remains, in one form or another.

There is a default and rollback coming, completely inevitable - a state failure.

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The russian state had all the guns. So did the argentinian state.

by definition states have all the guns, they still collapse.

There still appear to fully functioning 'states' in both Agrentina and Russia.

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Plan B is to pull up the draw bridge

So Injin has a moat?

Is he a Conservative MP? ;)

Edited by Game_Over

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Is that the same '100% guaranteed' as hyper-inflation in June? :lol:

we are have hyperinflations, it's just the figures being fudged.

Oil being 55% cheaper than last years $150/barrel peak is massively throwing the figures.

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