Wednesday, October 01, 2008

"Sound money" is back, at least with the Conservatives

There's a bit of a campaign over at Conservative Home for tax cuts come what may, borrowing money like George Bush if necessary.

I don't agree, and neither would my heroine Lady Thatcher.

She believed in "Sound money".

And we are all about to find out why as inflation starts to destroy our savings and the stealth bank failure tax ( depositor protection racket ) cuts in to reduce it further.

Real inflation is already ahead of the intrest rates you can get, and the government is probably going to turn to inflation to help get out of the hole its in now.

Finally people will long for "sound money".

Thanks goodness George Osborne and David Cameron seem to get this.

When the then Mrs Thatcher became PM taxes had to go up to put the governments finances on a sound footing after a reckless and irresponsible Labour government. History looks like repeating itself.

PS
1) I now think the general election will be in 2009 - Brown can not afford to go into Winter 2009/2010 with the industrial unrest his policies are certain to create.
2) I wonder how the Lib Dems economic fiction is going to stand up - or will it just get no scrutiny as usual ?

Further: I think the Conservatives and David Cameron should make every effort to own the phrase "Sound money", so that Gordon Brown won't be able to utter the words.

2 comments:

The Great Simpleton said...

The only way there wil be an election in 2009 is if England football win the World Cup and the cricket team thrash the Aussies in the Ashes series. Gordon will then try to bask in the reflected glory and snatch at the colective euphoria that will ensue. he will even claim that it was his policies "wot done it".

No, Gordon will ook at his chances, realise he has none and cling on to power like grim death. He will wait in the vain hope that a mirale will occur or the Tories do something stupid and implode

The Great Simpleton said...

Sorry senior moment - world cup is 2010 :-(

Looks like he's reall had it thn - good.