First reaction to budget 2009
I've done my best to follow the budget debate, despite some IT issues in the Shed this morning and here's my initial response.
In summary Darling has tried to put off necessary decisions, which means dealing with his main constraint which is now his ability to borrow money in our name. Therefore he has to give the impression that debt will fall, and fall quickly in the future. To achieve this he has put forward growth forecasts that certainly caused me to have a sharp intake of breath.
The govt efficiency savings aren't worth the risk of RSI in refuting, needless to say no one believes them.
Apparently the city is currently working out that the govt intends to raise over £200 billion in debt soon, and has had to use unusual ways of placing this debt due to the clear threat it won't sell.
The revenue raising measures will be ineffective, and are really there to help cover the political risks of just raising debt with no attempt to raise income. ( Though 5p on beer is going to hurt ! ).
The budget only balances because of the imaginary figures Mr Darling has conjured up. He's far closer to recklessness than prudence, but then it appears he doesn't care any more, at least not for us.
The truth is the economy is crashing at the fastest rate since 1945, and Alistair Darling has decided to put of dealing with the facts till after the next election by humming really loud and sticking his fingers in his ears.
That's going to be really bad for the rest of us and our children as we allow him to mortgage all our futures due to weak political leadership and a complete failure of patriotism in favour of selfish Labour party careerist interests.
Update: Other people have the money to be raised this year at £220 billion and counting ....
PS Its now clear that the 5-% tax rate won't raise much but will piss off lots of people who create wealth. Still it will allow Labour to run a hate filled campaign on a class war basis, so thats all right then ....
In summary Darling has tried to put off necessary decisions, which means dealing with his main constraint which is now his ability to borrow money in our name. Therefore he has to give the impression that debt will fall, and fall quickly in the future. To achieve this he has put forward growth forecasts that certainly caused me to have a sharp intake of breath.
The govt efficiency savings aren't worth the risk of RSI in refuting, needless to say no one believes them.
Apparently the city is currently working out that the govt intends to raise over £200 billion in debt soon, and has had to use unusual ways of placing this debt due to the clear threat it won't sell.
The revenue raising measures will be ineffective, and are really there to help cover the political risks of just raising debt with no attempt to raise income. ( Though 5p on beer is going to hurt ! ).
The budget only balances because of the imaginary figures Mr Darling has conjured up. He's far closer to recklessness than prudence, but then it appears he doesn't care any more, at least not for us.
The truth is the economy is crashing at the fastest rate since 1945, and Alistair Darling has decided to put of dealing with the facts till after the next election by humming really loud and sticking his fingers in his ears.
That's going to be really bad for the rest of us and our children as we allow him to mortgage all our futures due to weak political leadership and a complete failure of patriotism in favour of selfish Labour party careerist interests.
Update: Other people have the money to be raised this year at £220 billion and counting ....
PS Its now clear that the 5-% tax rate won't raise much but will piss off lots of people who create wealth. Still it will allow Labour to run a hate filled campaign on a class war basis, so thats all right then ....
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