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Crisis Is Looming In Government


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Last week I posted an article about the fact that the SLC (schools learning council) had suddenly pulled all the projects it had committed to in Sussex (£450 million worth), today I was reading a business giveaway that said that virtually all major transport projects are going to be axed or put on hold (eg Crossrail). There is a lot of cutting going on in the background and this will have a devastating effect on employment and private sector income over the next year or two, but I'm wandering if it's a signal of some serious panic in government after the failure of their bond sale. Maybe they've suddenly woken up to the fact that they can't lend to themselves indefinitely and that since no one else is going to loan them money, they'd better stop planning to spend it on anything except their loyal voters.

I'm starting to smell an IMF begging mission in the air, which will mean swingeing cuts to public services and payrolls. It will also mean a serious devaluing of our currency along with a hike in interest rates. These last days of the heatwave are like the last days of the idiotic spending spree that our nation has been on since 1997. Because of all this I believe that there will be no standoff in the property market after the summer. The private banks will ignore the government as they no longer have authority and will start fighting for any equity they can get their evil mitts on..repossessions will rocket, and forced sales will too. I expect to see record declines in prices in the period from Sep to May next year.

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Wouldn't surprise me at all if the political class leave the most politically explosive cuts (i.e. benefits) to the IMF.

Very astute comment. The cuts that are happening at the moment are not being heard about in the mainstream media, if Brown tried to touch invalidity benefit or single mothers he'd be booted straight away.

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The biggest cut they could make would be the NHS. I think it is still the largest employer in Europe?

I go into NHS hospitals every day. I spoke to someone recently who said that the work done in their hospital could be done by half the number of people employed to do it. I agree that anyone working as a contractor in the NHS is currently very vulnerable.

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Yep,

Gordon Brown was hoping an asteroid strike or UK scientists discovering how to make gold from base metal would save him and staked everything on the last throw of the dice.

Sadly for all of us it has not worked out. Cutting infrastructure projects during a recession is like eating your seedcorn.

Desperate times

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Yep,

Gordon Brown was hoping an asteroid strike or UK scientists discovering how to make gold from base metal would save him and staked everything on the last throw of the dice.

Sadly for all of us it has not worked out. Cutting infrastructure projects during a recession is like eating your seedcorn.

Desperate times

Exactly. Crossrail was a vital part of the future of the Capital.

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Exactly. Crossrail was a vital part of the future of the Capital.

of course, if things really go t*ts up, epochal transfer of skills and wealth to other international finance capitals - singapore, hong kong, then London may not need Crossrail after all as it won't have much of a future anyway.

Edited by Si1
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I thought that, if the current rail system can cope with peak employment, no point spending any money now as we start peak unemployment.

But how will we know that our new dictator is doing his job if there are no trains to run on time?

And how will we send all the brown people to the ovens without a tip top rail network?

The BNPers will want to know!

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July 2 (Bloomberg) -- Gordon Brown’s office said the government is committed to London’s 16 billion-pound ($26 billion) Crossrail project, saying planned future asset sales will help fund capital projects.

That's it, it's game over for Crossrail :angry:

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  • 420 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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