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George Osborne Warns 2014 'the Year Of Hard Truths'

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http://www.bbc.co.uk/news/uk-politics-25617844

This year will be "the year of hard truths" with more "painful cuts" needed to put the economy on a sustainable footing, George Osborne is to say.

He will say in a speech in Birmingham later that permanently cutting spending is the way to permanently cut taxes.

Labour wants to take the UK back to "borrowing and spending and living beyond our means", he will add.

But Labour says the chancellor should admit his policies have failed and have led to a cost-of-living crisis.

'Long way to go'

BBC political correspondent Carole Walker said that at the start of a new year - a time for many to face some harsh financial realities - Mr Osborne would remind people there was still a long way to go to fix the economy.

"As a result of the painful cuts we've made, the deficit is down by a third and we're borrowing nearly £3,000 less for every one of you and for every family in the country," Mr Osborne will say.

"That's the good news. The bad news is there's still a long way to go."

He said the UK was "borrowing around £100bn a year - and paying half that money a year in interest just to service our debts".

He added: "We've got to make more cuts. That's why 2014 is the year of hard truths - the year when Britain faces a choice.

"Do we say 'the worst is over, back we go to our bad habits of borrowing and spending and living beyond our means and let the next generation pay the bill'?

"Or do we say to ourselves 'yes, because of our plan, things are getting better - but there is still a long way to go and there are big, underlying problems we have to fix in our economy'?"

The trouble is the govt plan is to replace all this govt borrowing with private borrowing, which means higher house prices. That's the Tory economic plan. They still need £100bn+ borrowing they are hoping the consumer picks up the bill rather than govt.

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http://www.bbc.co.uk...litics-25617844

The trouble is the govt plan is to replace all this govt borrowing with private borrowing, which means higher house prices. That's the Tory economic plan. They still need £100bn+ borrowing they are hoping the consumer picks up the bill rather than govt.

Also in Daily Mail: http://www.dailymail.co.uk/news/article-2534337/More-hard-choices-needed-secure-long-term-recovery-says-Osborne-Chancellor-warns-spending-cuts-needed.html

There's "concern" on the Government borrowing front too.... which might halt the VI party times. Maybe they'll have to allow house prices to fall from these insane heights, stop being so generous to pensioner/voters ect. I won't be helping velocity with private borrowing to pay for massively overvalued housing. http://www.bbc.co.uk/news/business-25614095

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If they are going to release the content of speeches before they make them whats the point in turning up. Just send out emails every couple of weeks and save a bit of cash with the press conferences etc.

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If they are going to release the content of speeches before they make them whats the point in turning up. Just send out emails every couple of weeks and save a bit of cash with the press conferences etc.

Their ego's would never allow that.

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It's starting to unravel a bit behind the scenes and faith in Osborne is waning so I'm told.

Benefit bill has increased by double the projected figures. Borrowing has increased more under Gidiot in 3 years than it did under Labour in 13 years.

A lot of this has been pretty well hidden until now but I'm not sure they'll manage to keep a lid on it until the next general election. They will of course try.

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It's starting to unravel a bit behind the scenes and faith in Osborne is waning so I'm told.

Benefit bill has increased by double the projected figures. Borrowing has increased more under Gidiot in 3 years than it did under Labour in 13 years.

A lot of this has been pretty well hidden until now but I'm not sure they'll manage to keep a lid on it until the next general election. They will of course try.

borrowing limited to a percentage leads to exponential growth...in borrowing...

borrowing more than Labour did in such a short time is a severe warning that MUST be heeded.

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It's starting to unravel a bit behind the scenes and faith in Osborne is waning so I'm told.

Benefit bill has increased by double the projected figures. Borrowing has increased more under Gidiot in 3 years than it did under Labour in 13 years.

A lot of this has been pretty well hidden until now but I'm not sure they'll manage to keep a lid on it until the next general election. They will of course try.

Heard him on the radio this morning.

Apparently the state pension triple lock will be kept to 'reward savers and those who worked hard'. And here was me thinking it was a naked re election bribe.

In any case, apparently the problem isn't pensions and pensioner benefits, it's housing benefit for under-25s, and the problem of couples on 60k incomes living in council housing.

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Heard him on the radio this morning.

Apparently the state pension triple lock will be kept to 'reward savers and those who worked hard'. And here was me thinking it was a naked re election bribe.

In any case, apparently the problem isn't pensions and pensioner benefits, it's housing benefit for under-25s, and the problem of couples on 60k incomes living in council housing.

So they will offer a 70% discount for those lucky 60k income couples who have escaped the horrors of private renting to buy a 'giveaway' at our expense.

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So they will offer a 70% discount for those lucky 60k income couples who have escaped the horrors of private renting to buy a 'giveaway' at our expense.

Not your expense. Don't fall for rentier propaganda from a rentier government.

RTB discount is applied to inflated prices

Don't vote for rentiers which means not voting for any of the Westminster scum. Turn the General Election into a joke with mass civil disobedience.

Labour/Tory are the only real 'choice' provided by the land and banking elites that really run this Island and I am not playing this game anymore.

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Not your expense. Don't fall for rentier propaganda from a rentier government.

I'm all for escape from the rentiers, but I'd prefer to see an escape tunnel open to everybody rather than a chosen few who, once safe, can start telling pollsters about their new-found love for HPI.

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It's starting to unravel a bit behind the scenes and faith in Osborne is waning so I'm told.

Benefit bill has increased by double the projected figures. Borrowing has increased more under Gidiot in 3 years than it did under Labour in 13 years.

A lot of this has been pretty well hidden until now but I'm not sure they'll manage to keep a lid on it until the next general election. They will of course try.

The benefits bill will continue to rise fast.Thats what happens when they put someone like IDS in charge who doesn't understand welfare and how it works.

He has spent his time trying to bring in UC that will cost more money if it ever worked.Instead of reforming the big areas.Housing benefit,Tax credits,DLA (now PIP).

If you link inwork benefits to inflation or increases larger than pay increases the benefit bill keeps going up.

If you allow employers to make working for a lot of people a living hell,benefits are a far better option.

This government (like ones before it) look at the welfare bill as standing alone,when it is anything but.Its also an indication of failing government policy elsewhere.

As we all know,housing is a fine example.

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The hard truth is that the elite can't make the economy work by letting big business of £25 billion in tax arrears, and then take £25 billion from the low paid, and still have a growing economy. Banks paying back mis-sold insurance had a bigger effect to boost the economy than QE, because it went to people not banksters.

Rising household bills, declining wages, and massive private and Government debt spells disaster. The chickens are coming home to roost. Mass immigration and the destruction of union rights to lower wages.Wonga loans taking money out of the economy, high street betting machines and online betting taking more money away, a ponzi housing market sustained by zombie banks not lending to small businesses. Automation about to destroy more jobs, and a generation of young people excluded from any hope of a secure home.

Must be quite a challenge for Osborne given that all his instincts are to take from the many to give to the few. The 'hard truth' is that Osborne isn't up to the job, and his policies are making things much worse.

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How long until it noticeably starts falling apart? He seems to just make the same speeches over and over?

Not long. The credit impulse from FLS/HtB appears to have peaked. Net lending to individuals was barely positive in November and lending to businesses deeply negative. Unless Osborne picks up his deficit spending the GDP numbers are likely to turn soggy very quickly.

Today's 'unexpected' all-sector PMI print is pointing the way.

BdSW0a0CEAAwApD.jpg

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Osborne talks the talk but does not walk the walk. It is fantasy to think he will impose genuine austerity distinguishable from a profligate Balls. They all live for today with re-election on their mind.

The deficit will close imo, but not because of austerity but because we will have circa 3.5% GDP growth in 2014, low inflation because of a turning of the commodity super cycle, and anything up to 10% hpi growth.

In other words he will be flattered by the growth rather than fixing the roof when the sun was shining, just like the **** Brown.

Edited by crashmonitor

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Must be quite a challenge for Osborne given that all his instincts are to take from the many to give to the few. The 'hard truth' is that Osborne isn't up to the job, and his policies are making things much worse.

This.

We have had decades of policy based towards giving rich people/entities more in the hope that they will share a bit. And these same players have spent a lot on propaganda and politician-buying to get these policies. The fact is that the depression will continue unless the rich give up some of their gains in the form of higher taxes, and higher wages for the proles.

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Not long. The credit impulse from FLS/HtB appears to have peaked. Net lending to individuals was barely positive in November and lending to businesses deeply negative. Unless Osborne picks up his deficit spending the GDP numbers are likely to turn soggy very quickly.

Today's 'unexpected' all-sector PMI print is pointing the way.

BdSW0a0CEAAwApD.jpg

Clegg looking very distracted and shaky during his press conference (on now) probably knows there is a lot of bad data to come?

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This.

We have had decades of policy based towards giving rich people/entities more in the hope that they will share a bit. And these same players have spent a lot on propaganda and politician-buying to get these policies. The fact is that the depression will continue unless the rich give up some of their gains in the form of higher taxes, and higher wages for the proles.

Or a proper HPC?

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Or a proper HPC?

That too.

It's a fairly painless way for the genuinely wealthy as well, since a luxury flat in Mayfair remains a luxury flat in Mayfair even if the price halves.

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That too.

It's a fairly painless way for the genuinely wealthy as well, since a luxury flat in Mayfair remains a luxury flat in Mayfair even if the price halves.

Yes, the rich Eton/elite set don`t own property the same way that Billy fae Leith does, but they probably need to keep trying to prop it up to help the banks and get votes?Really surprised they didn`t just let the HPC rip at the start of their term, with the little guy taking all the hurt, can only assume the banks would have imploded if they had done this :lol:

Edited by dances with sheeple

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Yes, the rich Eton/elite set don`t own property the same way that Billy fae Leith does, but they probably need to keep trying to prop it up to help the banks and get votes?Really surprised they didn`t just let the HPC rip at the start of their term, with the little guy taking all the hurt, can only assume the banks would have imploded if they had done this :lol:

I think it's just a 'westminister village' thing - some things (Higher tax rates, house price drops, nationalisation, below-inflation pension rises) are seen as beyond the pale, as in 'If you do this, you'll lose the election'.

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