It was only a matter of time wasn't it? An economy based on debt and house price inflation will fail in the end. The problem we have now is that we have nowhere to go. With inflation rising (and real life cost of living going through the roof) any interest rate cuts will only ease the pain slightly.
An ideal opportunity to slash the welfare bill years ago was missed and this is what will drag us down. As unemployment rises, the welfare bill will soar. And still we will hear the ridiculous cries of child poverty. Is child poverty being able to take seven children on holiday to India for seven months with money saved from benefit payments ?
All governments will encounter a serious downturn in the economy eventually. To have G Brown at the helm at the time is frightening !
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