Monday 3 October 2011


So now we know that, although there is no Plan B, there's a Plan A+.

And this is it: The Bank of Britain England is going to print more money to buy up government debt, which is a cause of inflation and a devalued pound, and because the banks that we own will not lend money to small and medium sized companies, the government, or rather we, will do the lending. 

Well, I suppose you couldn't expect the government forcing the hand of the banks and the City, given how much money the Tory Party got from them, and will probably continue to get from them now.

Credit Easing, as it appears to be called, will inject tens of billions of taxpayers' money into businesses. It will not add to government debt, because the government will get assets in return for its money (sounds a bit like nationalisation to this untutored mind). However, if the money is not paid back, and clearly some of it won't be, the taxpayer will pick up the losses.

However, much though I may pour scorn on Mr Osborne's plans, Standard & Poor, which some would say has a little more experience in matters economic than I do,  has said that it will keep the UK's credit rating at the highest level because of its ''wealthy and diversified economy''.
You have to wonder if they have ever been here, don't you?

The good news is that Osborne has seen fit to follow the example of John Swinney, the better man by miles, and extend the council tax freeze. £70-80 on average per year may not see a massive amount, but £6 or 7 extra at the end of the month when fuel, food, clothes and other basics are rising, and wages are not, has got to be welcome.

The even better news is that because the English government (yes I know QM, there isn't one, but the de facto English government), has found £850 million to do this, our freeze will now be funded, as there will be a consequential. 

Pic: "Ah, I knew there was an extra £850 million, plus some for the colonies, up here. Nice shirt, eh? You lot couldn't afford one like this."


  1. Always good to find some money in a cave that you didn't know you had. I wonder if George is a bit like Scotty from Star Trek who always made things look worse than they really were so he could get a reputation as a miracle worker!

  2. The new recession

    Government is just carrying on as normal transferring the wealth of the many into the hands of a few of their banking friends.

  3. Nah, Munguin. He just has piles of dosh up his sleeve, actually his shirt is probably made of Swiss Francs.

  4. I love this bit, CH

    A recession occurs (2007-2008)
    Demand falls due to the recession (2008-2009)
    Oil/gasoline prices fall (2008-2009)
    A recovery begins (2009)
    The recovery self-sustains for a short period of time (2009-2010)
    Oil prices rise due to increased demand (2010-2011)
    The recovery falters due to increased oil costs (2010-2011)
    A new recession begins (2011)

    We go round in circles.