Thursday, 23 August 2012

I was, of course, entirely right

Well, not quite in all particulars.  But way back in 2010, I offered this hostage to fortune:
... the austerity drive, if it is followed through on, will probably make any double dip worse for Britain, as it will make the recession deeper, and longer. And the big risk is that the government will have too much political capital invested in its cuts and austerity to resile from them and provide stimulus when it's needed.

Even if it does, it's likely that this will be seen as panic, desperation, and disaster as they've made such a big deal of how the cuts need to be applied immediately and the debt and deficit were out of control. Investors won't listen, the bond markets will spook. Then, absurdly, we'll be in precisely the position the Tories claimed we were in prior to the election - weighed down by debt which we can't re-finance, a widening deficit due to the receding economy, and facing a credit downgrade.
And verily, it did come to pass:
Four months into the financial year the government has borrowed £44.9bn, £9.3bn higher than the same period in 2011. That excludes banking interventions and the one-off boost in April from a transfer of Royal Mail pension assets to the public sector. 
The OBR had predicted that borrowing on the same measure would be £120bn for the whole of the financial year, down from the £125bn borrowed last year.
Add to that all the other stuff that is coming to pass that is too long to list.  Which I think contains a fairly impressive amount of Right Stuff for someone with no economic credentials what-so-ever.  Why can't I be chancellor?  I don't think I am any less qualified than the goon who currently holds that office.

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Nasty little shit

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