Economists to Darling – Get real!

Big government isn’t just expanding in the UK, in the Euro zone and the US as well, the reach of government and it’s control over the daily lives its citizens is reaching Orwellian proportions.

Yesterday, the ITEM club and several other prominent economists sent a letter saying that the chancellor should be lowering taxes, not ramping up spending and risking a hyper inflationary holocaust.

When you try to spend your way out of a recession, the results are as predictable as dropping a snooker ball out of a window….it’s a cause and effect thing…you drop the ball…it falls due to gravity. When you attempt to spend your way out of a recession, soaring inflation, a plunging national currency which we are already seeing and the huge ramping up of national debts, follow. Drop the snooker ball….gravity takes over. Spend your way out of a recession and inflation, increased national debt and a declining currency follow…see how that works? Cause and effect. 

Milton Friedman and his wife have demonstrated this connection clearly and without argument. History has shown this over and over…not one attempt to spend our way out of a recession has ever worked. Jim Callaghan said it in 1976 with his famous quote “in all candour that the option of reversing a downturn by deficit-spending simply “doesn’t exist”.

What is Gordon the Gofer saying? “We are spending more to get the economy moving,” said Brown last week. “That’s the right thing to do.”

It’s not right for the man in the street. It’s not right for future generations, it’s not right for people on fixed incomes…but it is right for a desperate prime minister, it is right for the cities investment bankers and people in the public sector who will benefit from the extra work.

If you’ve never seen someone trying to put out a house fire with petrol….sit back and enjoy a lunatic who believes in fundamentally discredited principles of economic management at work. He’s made some mistakes, but this is by far his most damaging to date….most just don’t know it yet.

---

For More information on specific Banks use these links

• Alliance & Leicester
• Barclays
• Capital One
• Child Trust Fund
• First Direct
• HSBC
• Post Office
• Tesco Savings

Related Websites

• Six Lessons Star Wars Can Teach Us About Money Is Star Wars just a fantasy world or can we...
• Text of President Obama's State of the Union Address [/caption] Remarks of President Barack Obama The State of the...
• Get Up and Dance! I love dancing! There’s just something about a pulsating beat...

Tags: Chancellor, Euro Zone, Hyper Inflationary, ITEM Club, National Debts, Recession, UK, US