For how much longer are we going to be forced to tolerate the King Canute mentality of the Prime Minister and the Chancellor of the Exchequer?
David Cameron is reported today 19th July 2012, as saying he does not see a time when the Government’s austerity programme will end, that Public Spending cuts will be extended to 2020. Well at least he is getting something right, because his forecasts are all too likely to be true.
Why will he not face up to the truth? He is playing with a busted flush. A failed financial system that is now so far down the road it cannot be repaired. Only radical changes will restore a semblance of prosperity in the future.
How many times does he need to be told that an economy built upon debt is an economy built upon sand?
Why is debt considered to be the predominant way for new money to be brought into the economy and that commercial banks provide the best major source for the creation of new money?
Please do not blame Europe or the global economy, because you hold the remedy in your own hands.
If properly regulated, there is no justifiable reason why the Bank of England should not be able to create new money debt free enabling the Government to adequately fund its activities. That should not in anyway detract from a programme of efficiency cuts, or reductions in our present extremely damaging welfare packages.
Had, for example, the £375bn created through QE been fed into the Government’s bank account, debt free, then our economy would now be well on the way to recovery, which in itself would not only be setting an example, but would be going some way to aiding a global recovery.
What with the overall cost to the economy of debt and the excessive demands of Government for ever more taxes, any light there may be is very far down a very long dark tunnel.