Comments on: Apocalypse Now: A return to high borrowing, high taxes and weak growth http://blogs.reuters.com/great-debate-uk/2009/04/22/apocalypse-now-a-return-to-high-borrowing-high-taxes-and-weak-growth/ Wed, 16 Nov 2016 01:37:11 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Haroon Abbasi http://blogs.reuters.com/great-debate-uk/2009/04/22/apocalypse-now-a-return-to-high-borrowing-high-taxes-and-weak-growth/comment-page-1/#comment-3202 Wed, 22 Apr 2009 22:15:44 +0000 http://blogs.reuters.com/great-debate-uk/?p=891#comment-3202 Isn’t it funny how the BoE is buying up £150bn while the Treasury will be issuing £220bn. The government could end up buying up most of its own debt! Is the government trying to confuse us out of recession?

To those economists who supported QE you are utter clowns, the equivalent of court jesters employed to entertain kings many moons ago. How can a daft policy of buying back your own debt while issuing it in record amounts ever work?

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By: David http://blogs.reuters.com/great-debate-uk/2009/04/22/apocalypse-now-a-return-to-high-borrowing-high-taxes-and-weak-growth/comment-page-1/#comment-3201 Wed, 22 Apr 2009 21:44:21 +0000 http://blogs.reuters.com/great-debate-uk/?p=891#comment-3201 Absolutely right. The country has been thrown to the dogs. Now tell me one major economy that is in better shape which you could consider to be worthy of mention? France, Spain or Italy? Don’t make me laugh it will hurt too much; Germany? That’s a cracker when it is currently on life support and not expected to make it. The mighty U.S. – don’t think so. A huge proportion of their population already lives below the poverty line so no change there then.

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By: Haroon Abbasi http://blogs.reuters.com/great-debate-uk/2009/04/22/apocalypse-now-a-return-to-high-borrowing-high-taxes-and-weak-growth/comment-page-1/#comment-3200 Wed, 22 Apr 2009 18:56:34 +0000 http://blogs.reuters.com/great-debate-uk/?p=891#comment-3200 This budget is not a plan to get the nation out of a terrible mess but just a shot in the dark built on hope rather than belief.

There is simply no way Britain can borrow so much without causing a gilts strike i.e. investors refusing to buy government paper. For years our consumption has been fuelled by foreign investors willing to lend to us cheaply but surely no longer. These horrific borrowing figures mean no serious investor will touch sterling denominated paper for years to come. The end result will be a crash in the value of sterling and a massive rise in interest rates to entice borrowers into buying our sovereign debt.

Even after the crisis started we should never have got into this position. You simply cannot tackle the implosion of a credit bubble by borrowing even more. We should have let the banks fail with shareholders and creditors rightly losing their shirt while ring-fencing the deposits of savers and selling these on to healthy institutions.

Today Labour threw the Country to the dogs and it will go down in history as a defining moment in Britain’s rapid slide from a first world power to a third world banana republic. Seems Brown and Mugabe have a lot more in common than they thought!

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By: Motzart http://blogs.reuters.com/great-debate-uk/2009/04/22/apocalypse-now-a-return-to-high-borrowing-high-taxes-and-weak-growth/comment-page-1/#comment-3197 Wed, 22 Apr 2009 15:56:56 +0000 http://blogs.reuters.com/great-debate-uk/?p=891#comment-3197 This government should be tried for ‘Economic Crimes’

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