Why those cuts aren't optional

[Anthony Butcher]

You can view the page at http://www.democracyforum.co.uk/cont...ren-t-optional

[Millennium3]

To increase our gloom and to help confirm that it was the mismanagement of the economy by Gordon [eliminate boom and bust!] Brown which got us so deeply into debt, the Germans have announced revised forecasts today and expect their economy to grow strongly this year.

[Anthony Butcher]

I am actually quite confused by the deficit numbers. There is a very interesting document here:
Easy-to-browse Spending Review document - HM Treasury

However, it appears to have very contradictory numbers, which hopefully someone will be able to explain to me.

The government will spend £697 billion this year, but receive £548 billion. That means a shortfall of £149 billion. 149/697 x 100% = 21.38% deficit

Yet the same document claims that we have just an 11% deficit.

In this speech:
http://hm-treasury.gov.uk/spend_sr2010_speech.htm
he claims a deficit of £109 billion, which would be a 15.6% deficit. For an 11% deficit, the Government must think it is spending £991 billion.

[ron]

Whether the cuts of this magnitude are necessary now or not, any government that cuts spending on science and technology in real terms while increasing foreign aid need their heads testing. This coupled with increased spending on science and technology in the US and Germany, amongst others, will more than likely result in the few Brits that still make the effort to get degrees in these subjects leaving pretty quick for the decent money abroad.

This was the old Tory policy which worked OK last time because the financial services sector grew whilst the manufacturing and engineering sectors were destroyed. Can't quite see that happening this time...

[henrythefifth]

Your article is so misleading. I wonder whether you actually know who the government borrows the money off? The fact is our government borrows money off private banks who have been given the privilege to create money out of nothing, using the fractional reserve banking system!

The government does not raise enough money in taxes to pay for public services, so borrows the difference each year from private banks, by selling them government debt or gilt-edged securities. The private banks, however, have been allowed by governments to create this money out of nothing to buy the gilts, and then charge us taxpayers interest for the privilege. Thomas Edison said that if a government can print a dollar bond then it can print a dollar bill just as easily, but we wouldn't have the interest to pay to private banks! This is so true.

The fact is our nation's money-supply has been usurped from the government by private banking interests, who the politicians hve allowed to create over 95% of our money-supply as interest-bearing debt, less than 5% is still issued as notes and coins by the government.

The National Debt is illegitimate, and if the government took back their rightful, democratic power to create the money-supply on behalf, and indeed for the british people, from the private bankers, we would have no national debt or budget deficit!

We should be asking the question of our politicians why they have allowed private banking interests the power, and the privilege to create our nation's money-supply as interest-bearing debt?

Our economy runs on money issued as debt, and this is the root cause of our economic/financial/banking crisis.

If you would like to find out more please visit the money-reform campaign at this link Positive Money ?

[Millennium3]

My reading of the overseas budget, much of which is earmarked for India, is that the Tories see the UK's best chance to compete in the now hugely competitive world is in partnership with India - who supply the cheap labour.

Unfortunately India's workers do not quite match the Chinese workers of the nations further East, as we saw in the building of the structures required for the Commonwealth and Olympic Games. I think it would take a considerable change in culture, stemming from beliefs going back thousands of years, for India to be able to supply comparible workers.

[Millennium3]

Your article is so misleading. I wonder whether you actually know who the government borrows the money off? The fact is our government borrows money off private banks who have been given the privilege to create money out of nothing, using the fractional reserve banking system!

The government does not raise enough money in taxes to pay for public services, so borrows the difference each year from private banks, by selling them government debt or gilt-edged securities. The private banks, however, have been allowed by governments to create this money out of nothing to buy the gilts, and then charge us taxpayers interest for the privilege. Thomas Edison said that if a government can print a dollar bond then it can print a dollar bill just as easily, but we wouldn't have the interest to pay to private banks! This is so true.

The fact is our nation's money-supply has been usurped from the government by private banking interests, who the politicians hve allowed to create over 95% of our money-supply as interest-bearing debt, less than 5% is still issued as notes and coins by the government.

The National Debt is illegitimate, and if the government took back their rightful, democratic power to create the money-supply on behalf, and indeed for the british people, from the private bankers, we would have no national debt or budget deficit!

We should be asking the question of our politicians why they have allowed private banking interests the power, and the privilege to create our nation's money-supply as interest-bearing debt?

Our economy runs on money issued as debt, and this is the root cause of our economic/financial/banking crisis.

If you would like to find out more please visit the money-reform campaign at this link Positive Money ?

Just to add to this - is it any wonder that the banks cannot find money for loans to small and medium sized businesses with good track records when they can get 3200% interest on the money deposited with them by the public 1/2% and the amount charged on credit card debts 16% upwards? What a fabulous business!

[Bevois]

I am actually quite confused by the deficit numbers. There is a very interesting document here:
Easy-to-browse Spending Review document - HM Treasury

However, it appears to have very contradictory numbers, which hopefully someone will be able to explain to me.

The government will spend £697 billion this year, but receive £548 billion. That means a shortfall of £149 billion. 149/697 x 100% = 21.38% deficit

Yet the same document claims that we have just an 11% deficit.

In this speech:
Spending Review statement - HM Treasury
he claims a deficit of £109 billion, which would be a 15.6% deficit. For an 11% deficit, the Government must think it is spending £991 billion.

thats because governments deficits are always expressed as a % of national GDP - its ridiculous of course but it makes the deficit sound more manageable and stops the general public from getting worried about it.

[Anthony Butcher]

thats because governments deficits are always expressed as a % of national GDP - its ridiculous of course but it makes the deficit sound more manageable and stops the general public from getting worried about it.

Thank you, that makes a lot more sense now.

[angelman]

I wonder whether you actually know who the government borrows the money off? The fact is our government borrows money off private banks who have been given the privilege to create money out of nothing, using the fractional reserve banking system!

Me. I hold (for better or worse) quite a few gilts (as well as corporate bonds)