Britain is broke. America is next. http://www.telegraph.co.uk/news/politics/9107485/George-Osborne-UK-has-run-out-of-money.html
I am a committed believer of the Doom and Die scenario , but I would look for the sub text before taking the report too literally .Reports of our death are somewhat premature!! Our start point is that we will not contribute to a global IMF fund which then uses the money to bail out other European countries which are effectively bankrupt . A very reasonable position when we are not even an EZ member . But if we adopt that position , we can hardly say in the very next breath that we are considering tax reductions and so called cash stimuli to promote growth .That is , that we actually do have budgeting flexibility and that there is "spare " cash available . That would look an absurd contradiction . Once attention has moved away from the IMF passing round the begging bowl for slush funds , you will see George continue with the policy that he has already decided upon . The UK is obviously not broke in the conventional sense .If there was even the slightest truth in that , bond market interest rates would tell you quicker than you could run to the bathroom . It's not a real story . Just a space filler .
Just more political talk. Funny thing is when it comes to the budget all of a sudden the Chancellor manages to find some extra money, like pulling a rabbit out of the hat.
"But the Chancellor yesterday said he would stand firm on his effort to balance the books by refusing to borrow money. “Any tax cut would have to be paid for,” Mr Osborne told Sky News. “In other words there would have to be a tax rise somewhere else or a spending reduction." Cutting the size of the UK Nanny State makes the most sense. _
Americans can't seem to grasp events outside of their sea borders .All a bit complex for them --- and invariably they read the Daily Mail on line thinking that it is a source . Quaint .
Being a smart asre , the phrase " American Economic Experts " is an Oxymoron .And talking about Morons takes us back to AEEs
Did the British effect massive tax revenue cuts like we did in the US that starved the Treasury of revenues?
George Osborne said he wont borrow money to fund tax cuts or increase spending in the 2012 budget because the government's priority is budget cuts and the budget deficit still amounts to 93.5 billion pounds. Tories are fiscal conservatives who are against deficit spending. Borrowing more money to increase spending would just exacerbate Britain's financial situation.
