Free counter and web stats


..There's a little Samuel Pepys in all of us..

Friday, July 18, 2008

For ten years, while Gordon was the Chancellor, and for this past year while Alister has been the puppet-Chancellor, there was one financial rule that had been set in concrete.
"The Government must not accrue borrowing debt that exceeded 40% of GNP."
This policy, which by the way was a plank in both the Conservative and Labour platforms lo those years ago, has been one of the major factors in keeping Britain's economy separate from those of our European cousins.. in keeping our Government within in bounds of basic solvency.. in maintaining the highest possible credit rating for the Government, and the country.
Now, it would appear that with elections looming, the economy flagging, new polls suggesting the basic poverty level for a single person in this country is anything less than a gross income of £13,400 pa, inflation already at a new high and projections are for even higher consumer costs to come, that Gordon's faced with two alternatives. Raise taxes, or borrow more.
We're at our credit limit, and if government economists haven't learned from such examples as the disastrous New Democratic Party's policies in Canada's Ontario some 15 years ago, then they have only to look at the underlying situation in the United States today, to realise Keynesian economics simply don't work..
Those working to keep their debt load under control, while juggling a family, are going to find it increasingly difficult. The price of petrol, foodstuffs, mortgages, holidays, the toys kids demand as luxuries these days, will stretch their financial situations to near breaking, and in some cases, bring those who have borrowed beyond their means back down to earth, and into a situation they may well have thought they had earned their way past..
But the government cannot..must not..interfere with personal debt situations..
Further, as unpopular as it may well be, tax loopholes provided for industry, and the wealthy, must be tightened..
And if the cry comes from those who have invested well, and who can actually claim to be the movers and shakers of Britain, that they are being targeted, then unfortunately, so must it be. For those that are the wealthy, a temporary dip in their disposable income may mean the loss of a fair bit of the comfort they've unquestionably earned, but we are at war, both literally and economically.
Selling the family jewels to save a business that will eventually allow them to be replaced, is a far better option than watching that business disappear completely.
And if any comfort can be gained by those who will still carp over the gap between rich and poor, for the wealthy, relatively speaking, will still be far better off than the Prole, let the Prole take comfort in the fact their incomes, while somewhat less, are still there because some of those assets of the wealthy which have been taken, have kept them in their jobs..
That everything costs someone something.
But, Gordon will take the easy road, and perpetuate the cycle of 'bust and boom', and will announce no new taxes of any consequence, but a rise in the Government's borrowing ceiling.
At this rate, he's bringing the Euro much closer to this shore, and us all a step closer to losing the autonomy we've fought for, for time immemorial.

No comments:

Search This Blog

Blog Archive