Man in a Shed: Fiscal irresponsibility

Saturday, March 13, 2010

Lib Dems reverse course on fiscal responsibility to use debt to buy votes

You knew it was unlikely to last. Nick Clegg has just performed a humiliating U turn as the Lib Dems back using debt on future generations to pay for votes for themselves and Labour.

Typical Lib Dems ! ( Perhaps the letter to the Guardian by his MPs to disassociate themselves from his policies won't be needed this time. )

Remember there is no substantial recovery - and the signs are that a second dip of the recession and a credit crisis in private industry are very likely. There is very unlikely to be a recovery strong enough to give a good time to stop mainlining on debt. All the while debt floods the compartments of the ship of state, which shortly may sink suddenly in a financial crisis.

Vote Lib Dem - get Gordon Brown's economic destruction of the country continued !

No Change at all with the Lib Dems then !

See also Do the LibDems want to cut spending or not? Daniel Hannan.
Vacuity That Works For You Burning Our Money
Vince wants it both ways Iain Dale

The pound in your pocket

"We used to think that you could spend your way out of a recession and increase employment by cutting taxes and boosting government spending. I tell you in all candour that that option no longer exists." James Callaghan

“The trouble with theoretical economists is that they don't understand that when you have a deficit, you can only finance it by borrowing, and you've got to persuade people that it's worth lending money to you and that they'll get their money back... there's no way of escaping it.” Dennis Healey during the 1976 Stirling Crisis.

"Lenin is said to have declared that the best way to destroy the Capitalist System was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens ... Lenin was certainly right. There is no subtler, no surer means of over-turning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose." John Maynard Keynes, 1920.

"To preserve [the people's] independence, we must not let our rulers load us with perpetual debt. We must make our selection between economy and liberty, or profusion and servitude." Thomas Jefferson, President of the United States of America,1801-1809.

Inflation is taxation without legislation .. Milton Friedman