Monday, September 22, 2008
How will this work ?
Darling announces that he will not be reducing public services, and that taxes will not rise. He conceded public debt will rise. So Darling must think that government borrowing is at no cost. Well, I think he is going to be borrowing a massive amount. This borrowing will crowd out mortgage funding and I am sure we will be paying borrowing costs. Public sector workers need to understand that they are killing the economy, and that we just cannot afford such a huge state sector. Also, the government, because of chronic stupidity, ignore the fact that you need to consider total UK debt, not just government debt. Wait... Oh yeah, house prices ! Ummm. Going down like the poor old private sector.