HOW bad?

As the clock counts down to the General Election, and the parties and politicians frantically set-out, then demolish and re-re-re-set out, their stalls, we're hearing a lot about what they have - or at least, what they say they have - planned for us.

The foul-smelling and destructive elephant in the room is the gigantic recession we've all been enduring for the last Christ knows how long, and the horiffic levels of debt caused by Broon's big bust.

So far, two of the three main parties would like us to believe that everything will be OK, and there won't be any need for anything nasty like - ewww -  'cuts', at least not during 2010. Only CallMeDave's Tories are talking about immediate, deep cuts, and naturally, the media and the other parties are jumping all over them.

But do we need cuts? Do we need increase taxation? How bad is it really? From Wat Tyler (via the Devil) comes chilling information. He got his hands on some advice to clients from eevil Bankers Citi Global Markets.

The pointy heads have calculated - here comes the science bit - the 'fiscal tightening' needed by each of the major economies in order to get government debt back to the maximum safe sustainable level relative to national income.

And guess what? Apart from poor old been-fucked-forever Japan:

"..we in the UK have a bigger mountain to climb than anyone else. According to Citi's analysis we need to tighten fiscal policy by a whopping 12% of GDP. In plain English, that means the next government needs to cut spending or increase taxes by £180bn pa (in today's money)"

Oh, these big numbers do yer fuckin' 'ead in, don't they? What does that mean? Tyler helpfully explains some of the things the next Government could do to get us back on an even keel:

£7000 pa extra taxes or lower spending per household;

increase in the basic rate of income tax to 65p; or

increase in the standard rate of VAT to 57%; or

25% off total public spending;

Ouch. Ouch. As Tyler points out

"..there is no room for hesitation. And no time either. The longer we leave it the worse it's going to get, as mounting debt interest compounds the problem"

And what have we got? We've got two parties pretending we shouldn't fiddle with the situation at all for fear of somehow making things worse, and one party that can't be open about what needs to be done, for fear of being hammered by the Mirror and the Financial Times, losing crucial votes in the process.

We are, are we not, fucked?

.

14 comments:

Joe Public said...

Gordon will go down in history as this country's greatest fiscal-fucker-upper.

marksany said...

The most powerful force in the universe: compound interest

Charlotte Gore said...

Yes

Jill said...

Yes.

We cannot cut to those levels or increase taxation to those levels, or we will end up in a depression so bad we'll never get out of it - see Ireland's example, far less radical than the stuff you've typed, for proof. We cannot go on spending as we are, or we will go bust.

So yes. We're fucked.

As I keep saying, I do wonder if Labour's 'leave the banks alone until we have a nevergonnaactuallyhappen global solution' mantra is in fact the gamble to get out of it. Let their profits and stocks soar, then sell and pay down debt.

Can anybody see another solution?

JuliaM said...

Sadly, I think May 7th is only going to be the start of our troubles, not the end...

Dark Lochnagar said...

There is another option. We tell the Rothschilds et al, that we are not going to pay our debts and they can fuck off. If we do that internationally, what have we got to lose, some skint, evil superbankers.

Captain Ranty said...

I'm with DL.

Can't pay, won't pay. It worked for the Icelanders.

What can they do? Round up all 61 million of us and fling us in gaol?

Fuck 'em.

CR.

Anonymous said...

Yes we're in a bit of a pickle. Whatever way we turn we're fucked. Rasing taxes by that much would cripple the economy, and lower government spending by that much would err, cripple the economy.


They could impose severe austerity measures and lower taxes which will give the private sector a boost.


There's nothing else we can do, we need to work off all this debt all the gov't can do is get out of the way.


chefdave

Anonymous said...

Does this mean that Gordon Brown has been a really Stupid Cunt with the Economy ?

Anonymous said...

McGloom will do just as bliar has-fucked us royally,rake in millions from the speech/openings circuit and laugh his bollocks off at the hated English.

King of Scurf said...

Can we declare third world status and then that nice chap Bono will ask for all our debts to be written off?

Anonymous said...

Nice one king of scurf,mind you there are parts of this great land that resemble the 3rd world already-lets just enjoy the bits that havnt been ruined dont you think?

killemallletgodsortemout said...

And yet we still spunk loads of money away on overseas aid, where the darkies are doing very well for themselves, thank you very much.

Thatsnews said...

It will not do much good, but a surcharge on Brown and Blair and the rest of the Labour ministers would be just.