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Britain 'will Be Back In The Black By 2018': Budget Watchdog Praises Tories Record-Breaking Recovery - Blasts Labour's Reckless Spending

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'Britain is on track to deliver the biggest turnaround in public finances by any advanced economy since the Second World War, according to a report.


The independent Office for Budget Responsibility says that if current policy remains in place the public finances will return to balance by 2018-19 – producing the first surplus for 18 years.


‘It would represent one of the largest budget reductions among advanced countries in the post-war period,’ says its report.'




So,basically,we won't be adding to our debt in 2018.Wow.....


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By being back in the black do they mean:

1) If house prices keep going up and the people of the country take on unsustainable debt so that the GDP figures rise quicker than the borrowing then things will look rosy ?

2) We will stop borrowing but still be massively in debt ?

3) There is an election coming so we are just going to lie to people ?

Or all 3 ?

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what are they planning to sell off?

Government loves deficits...if the deficit is too low through real prudence, then they love to spend it back out again.

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UK govt looks like borrowing 6-7% of GDP again this year. added to which the UK household sector has been releveraging at a rate of 3-5% of GDP a year since 2012.

Not even remotely sustainable.

Stay short. Get out of sterling.

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Voodoo economics. These stories are all about gaining confidence from investors and the people. The raw numbers have been manipulated to such a degree that its probably impossible for Britain to ever run a surplus. And actually if we did that would be bad for the economy, we would not be borrowing and paying interest to our Elite friends who "own" all this credit by magic-ing it up in the banking system. Got to keep paying interest its the only way to create an economy.

That's probably why we constantly attack the middle east - with Muslim laws on Usury; not allowing interest; fundamentally investing in a business as a partner so you have a stake on its growth e.g Private Equity style - these would be a fundamental attack on the Elite ideas in the west to control the population through debt interest. Funny how non of these laws are ever mentioned when discussing Islam.

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...not so sure about their predictions ...nobody can see that far ahead in today's world...but they are correct on the mess made by Labour which led us to the bust:

"It heaped blame for hefty budget deficits on reckless spending by Labour in the period that Gordon Brown was Prime Minister and Alistair Darling was Chancellor.

It says the lavish spending plans announced by Labour in the 2007 Comprehensive Spending Review were adhered to despite the onset of the banking crisis, which was heralded by the collapse of Northern Rock in 2007 and the subsequent failure of Lehman Brothers in 2008.

Indeed, Labour actually advanced some capital spending plans – not due to take place until 2010-2011 – to the year before. It also spent heavily on employment support at a time when tax receipts were plummeting because of the depth of the recession."

:rolleyes:
Read more: http://www.dailymail.co.uk/news/article-2751344/Britain-black-2018-Budget-watchdog-praises-Tories-record-breaking-recovery-blasts-Labour-s-reckless-spending.html#ixzz3D0Sp7qTp
Follow us: @MailOnline on Twitter | DailyMail on Facebook

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So it's PM Brown and Chancellor Darling to blame. PM Blair and Brown as Chancellor don't even rate a mention in their contribution to spending in the lead up to the economic collapse.

It doesn't seem to be a very comprehensive report.

It would also have been helpful if they'd put some figures to their claims instead of just making general claims and stating meaningless generalities. Proper numbers with the £ signs would have clarified things - but they never do.

Edited by billybong

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I can't believe that the economists, bankers, journos etc still haven't noticed, that when you run up a debt fueled bubble, the finances always look deceptively good. It's when you actually have to commit at some point to not spending more than you earn, that it all suddenly gets revealed as a ponzi.

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I thought the plan was to cut the deficit in one term? I don't think we're even going in the right direction, never mind being on track. Even if we do by some miracle and end up running a surplus it's going to take a century to pay down the 1.3 trillion of debt they've piled up.

The UK may as well default now - it'll be less painful than the slow-motion hyperinflation they've printed up for us.

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You know, im shocked labour are still ahead in the polls. The media have been getting more and more pro tory over the last few years. Ed has all the charisma of an amoeba. The lib dem vote hasn't gone to Labour, its just 'gone' (or possibly some to greens), UKIP is taking labour votes as well.

The only reason I can think of is, outside metropolitan media land London THERE IS NO GODDAMN RECOVERY!

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So it's PM Brown and Chancellor Darling to blame. PM Blair and Brown as Chancellor don't even rate a mention in their contribution to spending in the lead up to the economic collapse.

It doesn't seem to be a very comprehensive report.

It would also have been helpful if they'd put some figures to their claims instead of just making general claims and stating meaningless generalities. Proper numbers with the £ signs would have clarified things - but they never do.

..they were pointing out in particular the reckless spending just before the election by Brown who was probably 'directing' Darling to win votes...it seems to have worked for the votes ..but not for the country ...nothing new in that from Labour..... :rolleyes:

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I thought Britain was going to be back in the black by 2015? I guess that one went in the memory hole.

Anyway if the independent* OBR says it's going to happen by 2018 then Osbrowne is as good as there. No point in waiting, break out the champers, mission accomplished.

*Chairman of the OBR: Robert Chote. Robert Chote's boss: George Osborne.

The OBR is led by the three members of the Budget Responsibility Committee (BRC) who are appointed by the Chancellor of the Exchequer following an appointment hearing at the Treasury Select Committee.

http://en.wikipedia.org/wiki/Office_for_Budget_Responsibility

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'Britain is on track to deliver the biggest turnaround in public finances any advanced economy since the Second World War, according to a report.

The independent Office for Budget Responsibility says that if current policy remains in place the public finances will return to balance by 2018-19 – producing the first surplus for 18 years.

‘It would represent one of the largest budget reductions among advanced countries in the post-war period,’ says its report.'

So,basically,we won't be adding to our debt in 2018.Wow.....

..and rangers will be back in the scottish premier league by 2017 to give celtic the most horrific hiding after all of the skullduggery that's been going on

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..they were pointing out in particular the reckless spending just before the election by Brown who was probably 'directing' Darling to win votes...it seems to have worked for the votes ..but not for the country ...nothing new in that from Labour..... :rolleyes:

I agree with that but ignoring the time before that is a bit like their current attitude towards house prices (that they all seem to be trying to encourage) that the peak in house prices in 2007/2008 should be the new normal/basic for house prices.

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OTH Chote's forecasts are very predictable: 3% gdp growth next year (when the economy recovers) and every year thereafter monotonically.

Hmmm...

screen-shot-2013-11-28-at-18-50-55.png

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