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  PaulB - the double dip was not a hard prediction given the depth of the 'Brown stuff' we were in after 13 years of Balls-ups. I have covered that in my blog after all and explained why a double dip was likely.
  
  What is absolutely certain are the clear and obvious economic mismanagement that got us into this position.
  
  Look again at my blog.
  
  One example: When should a government deficit spend and build up debt?
  Should it be in the growth phase of the economy?
  Or in the contraction stage of the cycle?
  
  Follow that on and using common sense and logic again.
  When should a government reduce and balance a deficit, the growth phase or the contraction phase?
  
  This is not rocket science. Anyone can understand this. You cannot spend more than you have income indefinitely and debt has to eventually be repaid. People will not lend to you either if they are worried about that ability to service debt, they will charge more to offset their risk and may refuse to lend if it goes too far. Governments are not immune to this as we can see in the Eurozone.
  
  Brown and his mate Balls did exactly the opposite to what common sense dictates.
  
  The result of what they did was a massive debt and a massive deficit right at the start of the economic slowdown. From that starting point you are in difficulty and people will not just keep on lending you money to carry on deficit spending and borrowing - it has to be cut. Again, not rocket science, pure logic.
  
  Balls and his like lie through their teeth and pretend they can work miracles spending money they do not have without suffering consequences.
  
  That is a cruel deceit that places politics before the economics and reality.
  
  Of course we know why they did that. Brown's massive illusion that he somehow pulled off King Canute's trick and defied nature, or in this case overcame the basic laws of economics - the economic cycle itself - Brown said it - he thought he had 'banned boom and bust' and ran the economy as if he had done so.
  
  Having left us in the weakest ever position at the start of the slowdown it is hardly surprising that we have the worse economic conditions just about ever. Specially when we add the consequences of his messing around with banking regulation that left them vulnerable at the start of the slowdown.
  
  We were living for years on a bubble of debt and the bubble has burst. What we are seeing is what we call in financial services a correction. You do not improve things by pumping air into a burst bubble as Balls seems to advocate.

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