Gordon Brown To Keep Spending High Despite Recession, Ed Balls Indicates

[interestrateripoff]

http://www.telegraph.co.uk/news/newstopics...-indicates.html

Mr Brown's determination to boost spending on frontline services will be underlined with the launch of his much vaunted national plan for public services on Monday.

His Building Britain's Future document includes a number of proposals which will require significant Government spending.

This will include the announcements of new funding for social housing and the recruitment of 100,000 personal tutors as part of an education White Paper.

Mr Balls, the Children's Secretary, has defied suggestions from Mervyn King, the Governor of the Bank of England, that immediate action was required to check the levels of public borrowing.

He indicated increased spending on front line services such as schools and hospitals, and hinted for the first time that the police may also be protected from the cuts.

The disclosure that ministers have little intention of reigning back on spending in the short term came as the Centre for Economics and Business Research warned that public spending was set to rise to 50 per cent of gross domestic product by the end of the next financial year.

Alistair Darling, who narrowly avoided being replaced as Chancellor by Mr Balls in this month's reshuffle, was said to be planning to shield the true condition of the economy from the public in the run-up to the election by cancelling the Comprehensive Spending Review, the Treasury's biennial economic report card.

The last CSR was in 2007, but Mr Darling is said to feel that detailed forward-planning on the economy was impossible while the full impact and extent of the recession remained unclear. It is expected this will be after the next general election.

The Conservatives accused the Government of performing an about turn over the CSR, and claimed that ministers were failing to tackle a growing black hole in the public finances.

Last week, Mervyn King, Governor of the Bank, gave warning that the country was experiencing: "An extraordinary level of public debt, which would require some pretty extraordinary things to be done."

A poll for The Daily Telegraph at the weekend showed that three-quarters of voters believe that spending cuts would be necessary in the next few years in order to balance the economic books.

David Cameron, the Tory leader, last week accused Mr Brown of misleading the public over spending cuts, saying that Treasury figures showed capital expenditure would fall after 2010.

The CEBR calculated that government expenditure would rise to 50 per cent of GDP by 2010/11, up from 41 per cent in 2007/8.

Interviewed on the BBC's Andrew Marr Show, Mr Balls admitted that government departments would need to be "defter and smarter" in their spending decisions in future years, but added: "We must ... also sustain our increases in investment in public services.

"I think if we are deft and we get the economy right, we can keep investing in schools and hospitals, in our police at the frontline, keep the money going up

"Of course we'll wait and see what happens to the economy. We are doing the right thing to get us through a downturn, so that the growth will be stronger, we'll have fewer people unemployed, and we will be able to continue ... our investments in frontline public services. That is the right thing to do."

He looks as trustworthy as Brown.

His Building Britain's Future document

Surely this should read His Bankrupting Britain 's Future document?

We have no money, already maxxed out on debt and our dear leader thinks the best thing to do is to create even more jobs which are self sustaining to try and buy votes at the next election.

This nation cannot afford this lunacy and we've got to put up with him for nearly a year.

I wonder how many more insane plans involving him spending more money we haven't got we'll get in the next 12 months.

Delusional tw@

[Deckard]

Debt is wealth.

Sorry, I just couldn't resist

[SarahBell]

And the last two weeks of parliament they are planning to pass about 50 acts?

seriously someone should stop them.

Proper government is about debate and creating the best laws possible for the country. Not pandering to the court of public opinion about issues and chopping and changing his mind ...

Government is more than one man.

[interestrateripoff]

Debt is wealth.

Sorry, I just couldn't resist

At least you have learned, now you just have to believe.

If you believe hard enough you will see the truth.

As I've said before Brown has learned that the more he borrows the bigger the economy gets. Debt = growth.

All he needs to do is borrow enough to get this magic formula to work again. I mean it's not working at the minute because he's not borrowed enough, he's failed which means he needs more ideas to allow him to borrow even more money to get the debt = growth equation working again.

Have faith, believe Ponzi Brown does.

[interestrateripoff]

Government is more than one man.

Please report immediately to the nearest reeducation centre for reprogramming, here in the Peoples Democratic Republic of Great Britain the Govt is one man, our dear leader.

[lulu]

This nation cannot afford this lunacy and we've got to put up with him for nearly a year.

All made even more grating with this "doing the right thing" mantra.

The morons and scroungers must love him. I hate the ba*tard, I pay vast amounts of money in tax every month and to see it all disspear into nothingness is soul destroying - though I am sure it will get worse in the future as it will be soon almost all disapearing into loan repayments.

I dont like to think ill of people but I my thoughts on Brown (and most of the rest of his cronies) are not even to be published on a pubic forum. in case the thought police see them.

[General Melchett]

He's never worked in the 'real' economy: He's never had to grapple with controlling costs, balancing the books, the concept that a pound saved from costs is worth more than an extra pound income, ensuring that contracts are not a blank cheque, giving a service or product that has a need at given price point yadda yadda yadda. Money just grows on trees as far as he is concerned. Or, more correctly, out of our kiddies pockets via the printing press.

How did we end up with someone so clueless as COE then PM? Oh yes, we got what 'we' deserved and voted for.

[Warwick Yellow]

At least you have learned, now you just have to believe.

If you believe hard enough you will see the truth.

As I've said before Brown has learned that the more he borrows the bigger the economy gets. Debt = growth.

All he needs to do is borrow enough to get this magic formula to work again. I mean it's not working at the minute because he's not borrowed enough, he's failed which means he needs more ideas to allow him to borrow even more money to get the debt = growth equation working again.

Have faith, believe Ponzi Brown does.

Brown and the rest of the Zanu authoritarians will be proven by history to be the most incompetent and disastrous regime to blight this once decent country, economically, socially and politically over the last sixty if not a hundred plus years..................

Whatever any of you do in the future never forget or forgive the Labour Party.

[Meerkat]

Pathetic, whatever they plan to do or are doing is counterproductive. If employment is their primary concern, all their attempts are futile and costly: they employ a bunch of bureaucrats and pay them well for wasting resources. Yet another reason why houseprices will land much harder than the consensus. People like Hamish just don't comprehend what terms like "economic waste", "capital" or "productivity" mean. And what's their relation to sustainable real estate prices.

Just to repeat it again: the long term average increase in real estate prices is equal to the growth in productivity within an economy, which roughly equates the growth in wages. That is all in real terms, of course. So, not only house price levels will have to adjust to the contraction in artificial credit supply, they will also take a hit due to wasteful economic policies adopted by the govy.

Edit: spelling

Edited June 29, 2009 by Meerkat

[bogbrush]

Alistair Darling, who narrowly avoided being replaced as Chancellor by Mr Balls in this month's reshuffle, was said to be planning to shield the true condition of the economy from the public in the run-up to the election by cancelling the Comprehensive Spending Review, the Treasury's biennial economic report card.

The last CSR was in 2007, but Mr Darling is said to feel that detailed forward-planning on the economy was impossible while the full impact and extent of the recession remained unclear. It is expected this will be after the next general election.

Here's the most sinsiter bit. Information suppression.

Really, isn't it time Brown considered whether we can afford to have an election during the critical 2010 year of recovery? I mean, it's destabilising while he's concentrating on doing the job we all want him to do, isn't it?

[Timm]

David Cameron and George Osborne [the shadow chancellor] say we shouldn't be acting, and they want to do tax cuts, which to be honest I think are hugely unfair and will be paid for in police and hospitals and schools being cut if you had a Conservative government.

"Do tax cuts?"

He's like a poorly educated seven year old. "Yeah, me an' Gordon are gonna do guvverment innit."

He's illiterate.

[yellerkat]

They're lying.

Fraser Nelson: Spectator LINK.

[Warwick-Watcher]

Brown and the rest of the Zanu authoritarians will be proven by history to be the most incompetent and disastrous regime to blight this once decent country, economically, socially and politically over the last sixty if not a hundred plus years..................

Whatever any of you do in the future never forget or forgive the Labour Party.

Does Ed Balls realise that he didn't get the Chancellor's job at the recent re-shuffle? Is he really that thick or smug (as the photo implies)?

[Deckard]

Does Ed Balls realise that he didn't get the Chancellor's job at the recent re-shuffle? Is he really that thick or smug (as the photo implies)?

both

[Executive Sadman]

He'll keep spending until Larry Chen stops lending.

Then the printing starts in earnest.

Remember, anything is better than the 'do-nothing' tories or any sustainable spending program.

[Si1]

thing is, the bloated public sector NewLab clients stand their best chance of actualluy receiving their pensions if spending is controlled - otherwise, country bankrupt, inflation etc kils their future pensions.

but the stupid idiots don't see it that way, and they seem intent on both ruining themselves and the rest of us in the process. Are they one and the same Borrow-to-Letters - as they seem to have a similar intellectual and moral outlook?

Edited June 29, 2009 by Si1

[EmpiricalBear]

The latest ideas from Labour are potentially destructive to our long term culture as they promote 'rights' over responsibilities.

People will have a right to certain kinds of medical treatment. A right.

More guff about what 'the government' will do for people.

ie: the rest of us, and what we have to pay in taxes to support the entitled.

Personally I think public services should make 'best efforts' rather than promise a right. Otherwise we shall see the costs of delivery spiral ever upwards.

If it becomes a human right for someone to be seen eg: by a cancer specialist in 2 weeks, what is the implication if this does not happen? The legal right to sue the NHS if that person dies? What is the cost implication of this.

I love the NHS... we have to retain it as an essential part of our society... but I can see this sort of thing wrecking it.

Shocking.

[Kilham]

If it becomes a human right for someone to be seen eg: by a cancer specialist in 2 weeks, what is the implication if this does not happen? The legal right to sue the NHS if that person dies? What is the cost implication of this.

Easiest solution would be for you to only receive confirmation you have cancer <2 weeks before an appointment becomes available. The good old laws of unintended consequences.

[Guest sillybear2]

Bankrupting Britain's Future

Edited June 29, 2009 by sillybear2

[sikejsudjek]

Oh dear. Balls and Brown don't have a clue what's coming to the UK - state default. Try spending your way out of that you plonkers. They are following the Argentine model of economic growth. Bloated public sector, unaffordable pension commitments and massive borrowing. I just hope they are still there when the storm blows up. Perhaps they are aiming to put the Tories in such a hole after the next election, they know they will stand a good chance of getting back in later.

[interestrateripoff]

The latest ideas from Labour are potentially destructive to our long term culture as they promote 'rights' over responsibilities.

People will have a right to certain kinds of medical treatment. A right.

http://www.dailymail.co.uk/health/article-...dure-right.html

The number of people having sex-change operations on the NHS each year has almost trebled since the procedure became a ‘right’.

More than 1,000 people have had the surgery in a decade, costing the taxpayer up to £10million.

Eighty per cent of the operations are to change a man into a woman.

In addition to surgery, transsexuals can also get psychotherapy and hormone replacement therapy on the NHS.

This was in the Mail, obviously someone who wishes to mutilate themselves in this way have got some very serious issues, but if your motivated enough to want to do this then why should this be priority over cancer? Save up and pay for it.

Decisions are going to have to be made and some people won't like the fact that their "rights" aren't that important.

[Warwick Yellow]

thing is, the bloated public sector NewLab clients stand their best chance of actualluy receiving their pensions if spending is controlled - otherwise, country bankrupt, inflation etc kils their future pensions.

but the stupid idiots don't see it that way, and they seem intent on both ruining themselves and the rest of us in the process. Are they one and the same Borrow-to-Letters - as they seem to have a similar intellectual and moral outlook?

You just have to remember in ZanuLabour land money grows on trees and a big pixie who looks like The Dear Leader will always be on hand to pick more of it when it's needed :angry:

[Guest UK Debt Slave]

Oh dear. Balls and Brown don't have a clue what's coming to the UK - state default. Try spending your way out of that you plonkers. They are following the Argentine model of economic growth. Bloated public sector, unaffordable pension commitments and massive borrowing. I just hope they are still there when the storm blows up. Perhaps they are aiming to put the Tories in such a hole after the next election, they know they will stand a good chance of getting back in later.

My conclusion regarding Broon's apparent 'Scorched Earth' policy is that both the UK and the USA have some kind of global agreement with their creditors to keep this ball rolling.

Why do our creditors continue to lend and prop up this system? It doesn't make any sense at all in the context of what we might call 'conventional wisdom' or previous comprable events in history.

My guess is that the creditor nations are guaranteed something in return for their continued support. This can be the only logical conclusion.

There were rumours a little while ago that the USA is actually using its sovereign territory as surety against its burgeoning deficits. The rumours were swiftly shot down in flames from numerous quarters.........but it does make you wonder doesn't it?

Assuming the plans for a unified, global financial system are more advanced than we are aware of, then creditor nations don't really exist. That must be one of the primary reasons why they are trying to create world governance and a unified system of commerce and finance across the whole world. Then it doesn't matter anymore if we owe creditor nations. The upshot is that they are globalizing poverty, reducing all people on the planet to a similar level of poverty.

Why are these hedge funds and complex financial instruments tolerated? These parasites are asset stripping the developed nations. Every time a hedge fund manager makes another billion, that money is coming out of company share values and out of peoples' future pension entitlements. There is very little wealth creation involved in these scams. It is pure speculation, casino capitalism. When hedge funds wager that a share price will fall and make billions, how does that provide a service to the economy? Does it improve anything for anyone? Of course not.

We are being systematically asset stripped with the full consent and connaivance of our elected representatives.

As long as the people are blind to what is happening, the will become ever more brazen and ruthless and their plans to monopolize all wealth and resources will accelerate.

Broon is without doubt, a sociopath, a madman. He is right up there with Hitler, Pol Pot, Stalin, Milosovic, Ceaucesu and any other evil dictator you can think of. The big difference is that whereas those people who suffered terribly at the hands of such regimes, the British and American people, and the Europeans, do not understand that their democracies have been hijacked by criminals and madmen. There's no need to murder people and gas people to death in concentration camps yet because the majority of people still believe in this system. They still cling on to the delusion that voting for another political party will turn things around. IT WONT.

Recent events in Iran demonstrate what happens when large numbers of people realize their governments have been ramming their national flag on the end of a broom stick up their collective rectums for decades.

So just for a moment, sit back and consider what will happen if the peoples of the developed world suddenly wake up and realize how badly they have been taken for a ride. Anyone who believes that the governments of the developed nations wont behave in exactly the same manner as their counterparts in Iran is deluded.

If they believe their system and control is under threat, they WILL respond with violence against the people. Be under no illusion about it. This is when the majority will finally realize what has happened and we had better hope it isn't already too late to do something about it.

[gravity always wins]

My children have a right not to be saddled with the debts of the feckless all of whom are adults and should be taking responsibility for their own actions.

But who cares about the rights of my children?

Just to say how sordid and deceitful this Govt is it has just announced an extra 100,000 teaching posts for personal tuition. But I have it on good authority from a number of sources that teaching assistants are having their hours cut dramatically all over the country.

WILL SOMEONE RID ME OF THESE FECKLESS SOCIALISTS? (just awaiting three knights to take me at my word please, please pretty please.)

[Guest UK Debt Slave]

My children have a right not to be saddled with the debts of the feckless all of whom are adults and should be taking responsibility for their own actions.

But who cares about the rights of my children?

Just to say how sordid and deceitful this Govt is it has just announced an extra 100,000 teaching posts for personal tuition. But I have it on good authority from a number of sources that teaching assistants are having their hours cut dramatically all over the country.

WILL SOMEONE RID ME OF THESE FECKLESS SOCIALISTS? (just awaiting three knights to take me at my word please, please pretty please.)

As George Carling so correctly pointed out.

THEY DON'T GIVE A FEKK ABOUT YOU!

AT ALL! AT ALL! AT ALL!

It's BIG club and YOU aren't in it.

You and I are not in the BIG Club