Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
#1
Christine Lagarde the boss of the IMF has endorsed the government's economic policy.
A direct quote:
'The gain that resulted from the fiscal consolidation that was decided over two years ago has been that result - the credibility of the UK Government and its ability to borrow at extremely favourable rates. Sometimes you feel like you could look back and wonder 'what if'. And when I think back myself of May 2010 when the UK deficit was at 11%, and I try to imagine what the situation would be like today if no such fiscal consolidation programme had been decided. I shiver."
To put it slightly differently, she has a shiver of fear about what our economy would be like now if Labour won the election and implemented their 'even slower' deficit reduction plan.
Personally I think she is a bit over the top in her praise of Osborne as he has only done enough to stabilise the UK bond markets. He has not cut public spending enough for a growth stimulus through lower taxes and less red tape reducing the burden placed on the private sector that is holding it back.
Guest 640- Registered: 21 Apr 2007
- Posts: 7,819
#2
I saw her actually saying that live at her press conference this morning...which was shown on the 24 hour news channels. So it was a good endorsement of Osborne and what he was doing. Although it must be said...Labour are suggesting roughly the same thing as Osborne, but not quite so stringent on the cuts ( 12% Police cutting rather than 20% for example ) and also with an eye of doing more for growth, according to Labour they were delivering growth at the time of the last election and I seem to remember they were.
Guest 716- Registered: 9 Jun 2011
- Posts: 4,010
#3
That was the sweetner,
the immediate caveats are the IMF call on the Government and Banks to do more for the POOR.........to get credit to
Business......invest more in infrastucture.........and if economic growth continues to FLATLINE we must consider to cut
VAT......
.......``some``` people have been saying that for two years.
We are advised to read the detailed report.......the concerns will sour the sweetner.
Guest 696- Registered: 31 Mar 2010
- Posts: 8,115
#4
There are many missing floor-tiles in the Government's path to recovery, Labour may know how to take advantage of this.
The absence of growth and innovative planning in the UK economy is something the two coalition parties may have to pay for dearly at a GE.
If they continue making life unnecessarily hard for the masses, suffocating all desires for tangible employment, ignoring the private debt issue of so many people forced onto shark loans because banks won't give them a loan, and don't address the "rich getting richer" factor, to name a few, then the Government stands a relevant chance of losing support and credibility big-time.
The last council elections a few weeks ago proved this.
They can't just go on protecting share and bond markets through non-stop quantitative easing while ignoring the plight of the masses.
Real economy means productive employment in the UK, it's not going to help just standing up and shouting at Greece not to default or not to leave the euro.
At this point the Gov. UK has to do something worthy of note at home, and stop pounding us with the woes of a Greek, or Spanish or Italian bailout. If they will not or cannot, they will lose support to the extent of being voted out.
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
#5
PaulB - at the time of the election the Euro crisis had not deepened. Look at the report and you will see Legarde's comment on the impact of that on growth.
Labour have no growth agenda, they are opposed to every possible measure of real growth. Their idea of growth is a farce, piling up even more debt for longer, shoving up borrowing costs and running the risk of a downgrade and all the disastrous implication for growth of higher interest rates.
Alexander - I have spoken against QE though Legarde supports it in her report, if the BoE thinks it necessary. A price is being paid now for QE1 and a price will soon be paid for QE2. You misunderstand the purposes of QE as well incidentally, not something I can be bothered to try to explain now. Also it is not 'non-stop' either. I have also said what the government does need to do on this thread and previously in the blog and other threads.
Guest 725- Registered: 7 Oct 2011
- Posts: 1,418
#6
I don't know quite why anyone is paying any attention to Largarde she being the buffoon that she is. Another career technocrat and europhile to the hilt. If she says that the government are on the right track you can be sure that things really are going to go pop. How an alleged right wing tory can possibly listen to her without creasing up is beyond me. No wonder the tory vote is dwindling.
howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
#7
the big guns at the i.m.f can say what they like looking down from their plush offices.
they are not the ones thrown on the dole or struggling to make ends meet.
Brian Dixon
- Location: Dover
- Registered: 23 Sep 2008
- Posts: 23,940
#8
philip,osbourne is the buffoon in this case,largard is adviseing nothing more nothing less.as for her being a eurofile i dont think so.
Guest 716- Registered: 9 Jun 2011
- Posts: 4,010
#9
Economic Growth will flatline for next two/three years unless.........Plan `B`..............
Guest 698- Registered: 28 May 2010
- Posts: 8,664
#10
I agree Reg. As long as plan B means more aggressive spending cuts accompanied by drastic tax cuts. We must shrink the state. It is a parasite.
I'm an optimist. But I'm an optimist who takes my raincoat - Harold Wilson
Guest 716- Registered: 9 Jun 2011
- Posts: 4,010
#11
Tomorrows Newspapers...Financial Times...The Times..Independent..The I..Guardian..etc..etc....Plan `B`....
......the mother of all `U` turns ........two years late.....
Guest 725- Registered: 7 Oct 2011
- Posts: 1,418
#12
I sometimes despair. It's all too much. We're doomed.
Guest 716- Registered: 9 Jun 2011
- Posts: 4,010
#13
Euro leaders meet today amid warnings that `strict` Austerity programmes ( Osbornes ) risks a vicious circle that could derail
recovery in the global economy.
At last the world and his brother and OECD are saying Austerity does not work.
The rich thought it was OK.The rest of us did not and we were paying for it.
howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
#14
i have taken a proper look at the report from the i.m.f and there are mixed signals.
starts off by praising george then when you read further it talks of the importance of growth and suggests that there should be a plan b.
Brian Dixon- Location: Dover
- Registered: 23 Sep 2008
- Posts: 23,940
#15
should have on plan 18 months ago,might havw seen better growth in stead of double dip resession,but hey osboure/cameron know better.
Guest 752- Registered: 21 May 2012
- Posts: 25
#16
"the big guns at the i.m.f can say what they like looking down from their plush offices.they are not the ones thrown on the dole or struggling to make ends meet." - Sounds more like Dover District council than the IMF to me
"flatline" Maybe DDC will take this into account when setting Council Tax charges.
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
#17
Why is it that some people fall into a trap, as Howard has done in #14 of somehow suggesting that growth is/should be plan B or is an alternative to public spending cuts?
The simple fact is that public spending is so massive, the deficit is so massive cuts to it are essential for growth. These cuts are part of a growth strategy.
Yes, the cuts are not deep enough, yes they are not quick enough, yes they are doing only enough not to scare the lenders into charging us higher interest rates, yes more things need to be done for growth, yes we have to help businesses.
Growth must and can only come from the private sector. The public sector is a burden it carries.
howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
#18
that's not what the lady said barry, this from the independent.
George Osborne must adopt an economic "Plan B" and slow the pace of public spending cuts if the British economy remains weak, the International Monetary Fund warned the Chancellor yesterday. The managing director of the IMF, Christine Lagarde, came to the Treasury to deliver the sobering news: that the Government should consider slowing spending cuts if recovery stalls.
She also called on the Bank of England to do more to support the economy - presently in the grip of a double-dip recession - by printing more money.
Guest 716- Registered: 9 Jun 2011
- Posts: 4,010
#19
Why is it `one`person is trapped in a groove ignoring what the world is now saying,and some, have been saying for two
years.Growth will flatline all the time we are stuck in Plan `A`...Plan `B`is the only way out for the foreseeable future.
IMF are now saying what Ed Balls has been saying for two years,it is only Cameron and Osbourne`s Political Capital stopping
recovery and the ultimate effect of the most embarrassing `U` turn and the momentum of the consequencies.
Guest 698- Registered: 28 May 2010
- Posts: 8,664
#20
Aggressive cutting of tax rates is most vital.
"We contend that for a nation to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle." Winston Churchill.
I'm an optimist. But I'm an optimist who takes my raincoat - Harold Wilson