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Britain Chided By Brussels For Ballooning Government Deficit

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http://www.telegraph.co.uk/finance/finance...nt-deficit.html

The European Commission has urged the Chancellor to start attempting to cut projected levels of government debt from next year – sooner than is projected in the Budget.

The call echoes those from the International Monetary Fund, Standard & Poor's and others that the UK must put its books back in order as soon as possible.

And in a further embarrassment for Alistair Darling and Gordon Brown, the Commission lumped Britain alongside Latvia and Ireland as seeing the biggest and most worrying increase in public debt levels in the coming years.

In its latest assessment of the UK, it said: "Taking into account the probability of a worse-than-expected deterioration in the UK's budgetary position in the near term and the heightened risks to fiscal sustainability, there is a need for a more ambitious consolidation effort in the medium term."

The near-13pc budget deficit the EC calculates Britain faces next year is the worst in Europe, after Ireland's. The Commission added that the UK, along with Ireland and Latvia, were facing "deteriorations of public finances... reminiscent of some of the most severe fiscal implications that systemic banking crises have had in the past".

The Bank of England's policy of quantitative easing is showing "encouraging" signs of working, its chief economist, Spencer Dale, said. He said it had helped lift the growth of broad money in recent months, and kept yields from rising even higher.

Foreign bar stewards, this is the thanks we get for saving the world.

How can we rescue the global economy if the EU don't get that debt is wealth.

We are run by unelected idiots.

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"broad money is increasing"

Can any of the flationists explain if this is relevant. I cant really be ar5ed to find out the definition of broad money (M?) and then debate for 4 years whether it is money or not

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"broad money is increasing"

Can any of the flationists explain if this is relevant. I cant really be ar5ed to find out the definition of broad money (M?) and then debate for 4 years whether it is money or not

Broad money is all the notes,coins and deposits BUT also "near money/almost money" in other words GILTS.

So what you could say is that the QE has ran alongside the de-leverage holding broad money level or increasing.

It is money in that it can be spent,but of course the economy has contracted 4%,so if it was unleashed at once it would be very inflationary.Depends where it goes.It might go into stocks.If gilts hold it might not boost inflation too much,but if the "money" is pulled from gilts and put into commods etc inflation will shoot up.

Its finely balanced IMO.

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Broad money is all the notes,coins and deposits BUT also "near money/almost money" in other words GILTS.

So what you could say is that the QE has ran alongside the de-leverage holding broad money level or increasing.

It is money in that it can be spent,but of course the economy has contracted 4%,so if it was unleashed at once it would be very inflationary.Depends where it goes.It might go into stocks.If gilts hold it might not boost inflation too much,but if the "money" is pulled from gilts and put into commods etc inflation will shoot up.

Its finely balanced IMO.

;)

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"broad money is increasing"

Can any of the flationists explain if this is relevant. I cant really be ar5ed to find out the definition of broad money (M?) and then debate for 4 years whether it is money or not

Think it's money kept abroad by Johhny Foreigner.

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Broad money is all the notes,coins and deposits BUT also "near money/almost money" in other words GILTS.

So what you could say is that the QE has ran alongside the de-leverage holding broad money level or increasing.

It is money in that it can be spent,but of course the economy has contracted 4%,so if it was unleashed at once it would be very inflationary.Depends where it goes.It might go into stocks.If gilts hold it might not boost inflation too much,but if the "money" is pulled from gilts and put into commods etc inflation will shoot up.

Its finely balanced IMO.

ta very much

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It certainly looks as though the Europeans are trying to crash Sterling. I wonder how they think that will help them?

Really? It's not simply a case of the UK committing hari kari? :rolleyes:

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