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Realistbear

Koalishon In First Big U-Turn: Cuts Will Be Cut

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http://uk.finance.yahoo.com/news/british-minister-says-cuts-may-be-scaled-back-afp-624418f9df23.html?x=0

British minister says cuts may be scaled back
5:03, Saturday 9 October 2010
Britain's government
could
will scale back public spending cuts aimed at reining in a record deficit
if
when the economy starts to
deteriorate
resume its collapse, a minister said in a newspaper interview published Saturday.
Energy Minister Chris Huhne told the Daily Telegraph the reductions set to be unveiled on October 20 by the Conservative-Liberal Democrat coalition which took power in May were
not "lashed to the mast"
window dressing to impress the IMF.
Finance Minister George Osborne meanwhile said that the cuts, currently due to come into effect in April, would be phased in
over four years,
over the years ahead the Financial Times reported.

No doubt NIESR's report that our economic growth has halved will have influenced this U-turn.

Pity because the IMF were so impressed by our tough austerity measures. :(

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Right now there is zero pressure to cut. Investors are happily buying 10 year bonds for 3%, while inflation is 3.1%. And the trend is to even lower yields on the bonds. There is even growing talk that the UK will need some more QE next year, so that is yet more funding of national deficit.

There is also the painful reality that about 90% of our consumer economy is driven by government spending. Stupid little government offices in the middle of nowhere have like 500 employees. They are the town's economy.

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Right now there is zero pressure to cut. Investors are happily buying 10 year bonds for 3%, while inflation is 3.1%. And the trend is to even lower yields on the bonds. There is even growing talk that the UK will need some more QE next year, so that is yet more funding of national deficit.

There is also the painful reality that about 90% of our consumer economy is driven by government spending. Stupid little government offices in the middle of nowhere have like 500 employees. They are the town's economy.

And the BBC are about to send 25 highly paid government workers to film the miners in S America. That will be one cameraman, one roadie/reporter to carry the camera and 23 directors on a public sponsored free holiday in the Andes or wherever the mine is.

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We want cuts - you can't trust Brown, you can't trust Labour. We want cuts, we want cuts, we want cuts. Vote Tory Vote Tory!!!

WHAT!!! The cuts affect ME?????

No to cuts. Restore Child Benefit! Osbourne is evil.

ROTFLMAO Welcome to comedy Britain.

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That will be one cameraman, one roadie/reporter to carry the camera and 23 directors on a public sponsored free holiday in the Andes or wherever the mine is.

Inverted organisations will feel the cuts too, public or private! :huh:

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We want cuts - you can't trust Brown, you can't trust Labour. We want cuts, we want cuts, we want cuts. Vote Tory Vote Tory!!!

WHAT!!! The cuts affect ME?????

No to cuts. Restore Child Benefit! Osbourne is evil.

ROTFLMAO Welcome to comedy Britain.

That was always a big problem. Everyone agrees someone else needs to be cut back. But obviously their own job is critical and if anything they are underpaid.

Reality is most are surplus labour and their job only exists because the state wills it.

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Cuts would simply add to unemployment and the idea that hundreds of thousands of civil servants will find jobs in the private sector was as mad as Brown's belief in a miraculous end to boom and bust.

I do not know when the piper will actually be paid but so far he has not but he will be.

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Cuts would simply add to unemployment and the idea that hundreds of thousands of civil servants will find jobs in the private sector was as mad as Brown's belief in a miraculous end to boom and bust.

I do not know when the piper will actually be paid but so far he has not but he will be.

My experience of the private sector is most jobs are also (as aa3 rightly says of the public sector) surplus labour. Plus most government spending goes to the private sector. (Cancelling ID cards will not help Siemens much)

The piper will have to write off the debt. That, undoubtedly, is the next stage in this farce.

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Investors are happily buying 10 year bonds for 3%,

By 'investors', you mean the US/UK government and various Cayman Island entities? lol.

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Quite, all talk and no action, now there will be less cuts as the economy recovers (GDP includes public sector) spread over four years and presumably centered around year four ... so since they have been in power what have they acutally done. Cut a few quangos, trimmed the SMI ... that's about it ... and child benefit cuts in two and a half years. The deficit is increasing every day and the debt and interest is spiralling out of control.

But I see a ship ... it's the QE2 come to save us all.

Cunard have just launched the Queen Elizabeth. Is that the ship you see?

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Quite, all talk and no action, now there will be less cuts as the economy recovers (GDP includes public sector) spread over four years and presumably centered around year four ... so since they have been in power what have they acutally done. Cut a few quangos, trimmed the SMI ... that's about it ... and child benefit cuts in two and a half years. The deficit is increasing every day and the debt and interest is spiralling out of control.

But I see a ship ... it's the QE2 come to save us all.

QE2 retired from active Cunard service on 27 November 2008, where it was planned for her to begin conversion to a floating hotel which would have seen her eventually moored at the Palm Jumeirah, Dubai.[2] However,
as of March 2010 she remains moored at Port Rashid awaiting an uncertain future.[3]

All looked rosy in 2008 but 2 years on and the future is very uncertain. Looks like we and the QE2 have much in common.

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The temporary stability we're enjoying has allowed the coalition to become complacent.

They've shovelled the costs onto the poor who have begrudgingly accepted it, why risk giving themselves a headache when they've found a magic cash cow that they can keep on milking.

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No, this one will be launched by Boe and is called Quantitive Easing 2, much bigger and better than QE1 ...

:lol: I was just looking at the new Cunard vessel. Looks very Titanic. I see no icebergs.

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By 'investors', you mean the US/UK government and various Cayman Island entities? lol.

Exactly, banksters and hedgefuks front-running QE is not a sign of anything other than the central craphouses continuing their policy of economic dislocation and injection of malinvestment into increasingly every aspect of normal life.

This will end even more badly than the property bubble. Every bubble inducing episode is spreading the danger wider and deeper into the economy.

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Taxy taxy. Told ya.

Huhne is apparently ex Westminster school, the Sorbonne and Oxford. Allegedly a multi-millionaire entrepreneur from his City business providing sovereign debt ratings. La creme de la creme.

Yet his negotiating stance is to cave in before he's even published his proposals.

This just isn't going to work fellas. They haven't got the collective cojones.

Edit: Btw, anyone know if Huhne still has his BTL portfolio? "I have investments in five homes for rent, which is basically my pension fund from my time in the City; and we have two homes we actually use, which is one in Eastleigh and one in London." (ex-wiki)

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My bigest fear has always been the Condems talking a good game but not actually playing

Well I'm not so bothered about the depth of the cuts, just so long as they can achieve that without taxing me further.

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Pity because the IMF were so impressed by our tough austerity measures. :(

. . . Stuff the IMF and the rest of the banksta apparatus. :angry:

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The Con- Dems are either a bunch of muddling through fools, or they are unrecognised geniuses.

They had a Brown moment as soon as they got into power, promising to increase pensions in line with wages, RPI or 2 1/2 percent, whichever is greater.

Now, given that the biggest item of expenditure facing the nation is pensions, and they are going to increase them, then just how did they every expect to move towards balancing the budget?

I remember an article talking about the problems with Equitable Life. It said that 3 people had each been promised 4 smarties. Trouble was, there were only 8 Smarties in the tube. We have the same problem here, everyone has been promised 4 smarties, except we have now promised the Pensioners a fifth Smartie.

That of course means that any cuts will have to be all the deeper on the remaining areas. Except you cannot cut the other areas quite so easily, as they do actually serve a function. Those on benefits dont actually serve any function at all, so you would have thought this area would have taken a larger percentage share of any cuts.

After having made this foolish move, the Tories must now be realising that they simply cannot achieve their aim of balancing the budget and keep the rest of society functioning properly enough to stay in power, they are clearly having second thoughts. Such is the curse of rash promises. You can almost smell the desperation when they cut a Universal Benefit for only the highest rate tax payers, creating a new poverty trap of their own, rather than removing them as they had promised to do.

Balancing the Budget isnt really that tricky. Just work out how much you can tax the private sector. Ensure that wages in the public sector are lower on average, to compensate for the greater job security and benefits that the public sector provides. Create a list of priority areas to spend money. Defence and tax collection are at the top of course, any state has to have the ability to finance itself and defend itself. Child Protection for our children, Law and Order probably come next, we at least want our criminals pursued and locked up. Then a roads system, perhaps education for our children. Then a health system.

Hmm, noticed that I havent reached Pensions and other benefits yet? Anyon disagree with my priorities?

One odd one is debt repayment on the national debt. If you want to borrow cheaply now and again, you had better repay this. The UK and the US have been triple A rated for many years, due to the fact that they have never defaulted. Borrowing money and not paying it back is a once only gain the Treasury can make, the longer term costs of not repaying are normally far higher.

So what does the government do? It has a plethora of obligations, and thanks to the EU and unelightened judges, no easy way of getting out of these promises. In total they are simply not payable.

Perhaps the Tories are geniuses after all, and see that a state default is the only way to resolve the problem of unpayable obligations. If this theory is true, then be prepared for a very disappointing round of cuts on October 20th, and expect what is announced to be cut back shortly afterwards as a result of a maelstrom of luvvy leftie media attacks.

State Default appears to be the only way out.

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Well I'm not so bothered about the depth of the cuts, just so long as they can achieve that without taxing me further.

You will be disappointed. VAT is to rise, a regressive tax.

'Fairness' and spreading the pain will mean more direct taxtion like night follows day.

The Tories always thought Government was easy, that the public sector was massively inefficient with huge savings to be made.

They are now finding out that cuts in spending mean cuts in services which will cost them votes. Since a Coalition is inherently unstable, they have to keep an eye on how the electorate will react.

DOOMED and good riddance.

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  • 145 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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