Gordon Brown accused of “fantasy” over public debt as changes tack

“There are two ways to conquer and enslave a nation. One is by the sword. The other is by debt.” – John Adams

The elite puppet Prime Minister Brown is looting the taxpayer all of the time with dire consequences:

Fitch warns: Britain and France risk losing their AAA rating

Moody’s warns of ’social unrest’ as sovereign debt spirals … because of bankster bailouts

UK taxpayers face £2 trillion unfunded pensions liability, more than £80,000 for every household

Moody’s: Top US And UK Debt Ratings May ‘Test The Aaa Boundaries’

Treasury Pre-Budget Report Warning: UK ‘Faces Decades of Debt’

Morgan Stanley: Britain risks sovereign debt crisis in 2010

OECD warning: Britain risks ‘debt spiral’

Prepare for the worst, because it’s coming!

See also:

French public debt hits record

Moody’s Downgrades Greece’s Credit Rating


gordon-brown-accused-of-fantasy-over-public-debt
Mr Brown made clear that he will portray Labour as the party of investment in the general election

Gordon Brown was accused today of indulging in “fantasy” over the state of the public finances after he promised that Labour would continue to invest in skills and schools in spite of demands that he reduce Britain’s record deficit.

The Prime Minister used his first interview of the new year to warn that the Tory plan to cut debt would damage the economic recovery.

He made a series of new spending commitments to boost science and education and insisted there was still money available to invest in Labour’s priorities.

But Mr Brown risked re-opening bitter internal divisions by claiming that public spending would rise by 0.8 per cent a year. This figure was denounced when he used it last year because it includes debt interest payments and social security, leaving government departments expecting real-terms cuts of between 10 and 20 per cent.

Mr Brown claimed that the rises in national insurance and the ending of pension tax reliefs, along with lower- than-expected unemployment, would bring down the deficit. Now was not the time for a comprehensive spending review, which would lay out the scale of departmental cuts, he said.

This drew fire from Vince Cable, the Liberal Democrat Treasury spokesman, who said that cuts were already being implemented in Whitehall spending.

“This is a rather unconvincing attempt to draw an artificial dividing line. It’s simple fantasy to imagine painful decisions can be avoided in public spending, with some departments already talking about 10 per cent,” Mr Cable said.

“Lord Mandelson has already undermined the Prime Minister by making very deep cuts in the university and science budgets, with some of the best scientists in the country losing their job. This leaves Mr Brown looking very foolish.”

All parties have stepped up their campaign efforts this weekend, ahead of the general election, which must be held by June.

Tomorrow the Tories will publish the first chapter of their election manifesto on the NHS. Ken Clarke, the Shadow Business Secretary, faced intense scrutiny for suggesting that the Tories may raise VAT if they win the election.

The Liberal Democrats dismissed aggressive courting by Labour this weekend. The Prime Minister held out the olive branch to the party, saying that there was an “agreement on ideas” with them over tax and public services, adding: “There is obviously the possibility of people working in common harmony.”

Lord Adonis, Labour’s Transport Secretary, said in an interview with The Sunday Times: “Nick Clegg is a very capable leader and ideologically I am on broadly the same page as him, as I believe is Gordon Brown.”

Sam Coates, Chief Political Correspondent

January 3, 2010

Source: Times Online

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