Thursday, July 28, 2011
Thinking the unthinkable: Might there be no way out for Britain?
A bear feast. George Osborne's Plan A is nonsense, because it depends on growth of 2.5%, 2.9%, 2.9% and 2.8% in 2012-15. Which sectors does Osborne think are going to grow exactly? Construction? Financial services? There were six major growth sectors in the 2000s, but they all depended on ever higher public or private borrowing. All are therefore now ex-growth. Since the electorate will not accept the necessary 20%+ cuts in state spending, we are inevitably going to follow Greece, Italy and the rest down the plughole. Large falls in property prices are forecast.