New fiscal rules may mark the beginning of a “scorched earth” policy.
Fraser Nelson writes a damning assessment of the Treasury’s attempt at rewriting the fiscal rules as outlined in the Financial Times this morning, in The Spectator.
He reckons it’s the start of a “scorched earth” policy agreed between Brown and Darling and that they know the game is up, the next election is already lost, and therefore they may as well borrow to the hilt and screw over the economy (and the British public) leaving the Tories a hefty bill when they take over.
Brown has realised that if the Tories win the next election the he is
now spending with Cameron’s Gold Card – every by-election bribe, every
union sellout will be funded by borrowing with the bill sent to D.
Cameron Esq. Cameron will have to tax us to pay for what Brown is today
spending.My take is that Brown doesn’t care, not any more. Like a retreating
army, he doesn’t want the advancing Cameroons to have any advantage at
all. Debt is a boring subject, but it means we’ll all pay more taxes
for longer.
With the whole country tightening it’s belt one might have thought that the government would set an example and lead from the front by reducing it’s spending. Countless billions of pounds could be trimmed from UK Ltd’s. budget without having any meaningful affect on services, government has once again become bloated, over large, fat, and wasteful. Spending your way out of a recession is fine, if you’ve managed to put some cash away in the good years, trouble is Gordon Brown failed to build any reserves or pay off enough debt when he was Chancellor, the cupboard is now bare. He is now faced with three stark choices - raise taxes (which would be highly unpopular), cut spending (goes against the NuLabour ethos), or increase borrowing (something he is familiar with).
Increasing borrowing is likely to have a further damaging affect on interest rates, which the Bank of England will struggle to keep from rising, but why worry, it will only be people’s mortgages, companies’ investments, and the housing market that will suffer! Homelessness, repossessions, and rising unemployment can all be blamed eighteen months later on the wicked Tories (probably by David Miliband by then)!
Yes, Brown appears to be screwing us all over.
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