The British are going! The British are going! The British are going down the drain in an ominous preview of what American can expect if we don’t demand sanity from the crazed socialist heard of democrats who’re now running the show in Washington. As bad as conditions may be in America; the British have seen their currency depreciate by about 30%, their recent attempt to borrow more money fail on the world markets, and their PM lambasted in the European Parliament with such stunning clarity and incisiveness that it takes your breath away.
Briton is in danger of bankruptcy and still its Prime Minister prattles on about giant stimulus plans based on borrowed money and calls on his citizens to follow the government off the cliff and spend like there’s no tomorrow. In Britons case there may well be no tomorrow. Briton faces insolvency and the government of Mr. Brown faces extinction, and the G20 summit in London next week faces the prospect of violent demonstrations. There is a stark prospect of years being required to clean up the mess if not a generation or three and the root of the problem remains quite simple.
Big, Socialist, Welfare Based, Leftist government: simply does not work. You can’t spend your way out of a depression with borrowed money and when you lose your currency you’re in a multigenerational world of hurt. Your Government is not your mommy, your daddy, or your Uncle Sam: and you have to pay your bills. Either you rule the Government or it will rule you: and a very bad job they’ll make of your life too, if you let them.
Prime Minister Brown runs around pitching the greatest stimulus package the world has ever seen with all the heartfelt emotion of a drug addict raving about the ultimate “fix”. As Neville Chamberlain waved his piece of paper declaring it to be “peace in our time” so Brown cuts an equally pathetic figure insisting that more borrowed money will ward off an economic calamity that can’t be avoided. The British need to bite the bullet because the calamity is going to be pain that they’ve not known since the darkest days of World War II and they need a financial Winston Churchill that can restore sanity, morality and honor to the UK.
The British are not alone in this predicament as the Americans are in exactly the same straits and when America falls, like the Soviet Union before it; there’s going to be a very large vacuum on the world stage and anything can happen at a time like that.
Here’s some of what’s being written about Briton this week from Bloomberg:
March 25 (Bloomberg) — The U.K. failed to find enough buyers for 1.75 billion pounds ($2.55 billion) of bonds for the first time in almost seven years as debt investors repudiated Prime Minister Gordon Brown’s plan to stem the worst economic crisis in three decades.
Brown’s government aims to sell a record 146.4 billion pounds of debt this fiscal year and as much as 147.9 billion pounds in 2010 as he tries to pull Europe’s second-largest economy out of its worst recession since 1980. The prime minister’s plan drew criticism yesterday when Bank of England Governor Mervyn King told lawmakers in Parliament in London the government should be “cautious” about spending and deficits.
“This is a warning signal investors are sending to the government,” said Neil Mackinnon, chief economist at hedge fund ECU Group Plc in London, who helps manage about $1 billion in assets and is a former U.K. Treasury official. “Investors are giving the thumbs down to the gilt market.”
“This sinks Brown below the waterline,” said Bill Jones, professor of politics at Liverpool Hope University. Brown’s “whole strategy is based on borrowing and now he can’t get anyone to buy his gilts. This means the prospect of going cap in hand to the IMF hovers increasingly into view.”
The auction failure comes as the Bank of England uses newly printed money to purchase government and corporate debt in an attempt to drive down borrowing costs. The Treasury gave the central bank authority March 5 to purchase as much as 150 billion pounds of securities.
“It doesn’t help to have your central bank say it’s buying government debt and then when you’re selling it you can’t find enough buyers,” Kit Juckes, head of fixed-income research at Royal Bank of Scotland Group Plc in London, said in an interview today on Bloomberg Radio. “It doesn’t impress.”
Here are some interesting bits from the Daily Mail:
Gordon Brown today tried to play down a rift between the Government and the Bank of England over the possibility of another spending spree in next month’s Budget.
The Prime Minister, during a visit to New York, insisted Mervyn King was behind his measures to prop up the ailing economy.
Mr King stunned Downing Street yesterday by warning against a giveaway Budget in April because public finances are already hugely overstretched.
The extraordinary warning not to blow billions on a second ‘fiscal stimulus’ came perilously close to breaching the convention that the head of the Bank does not question Government policy.
Mr King’s intervention was especially embarrassing for the Prime Minister because it came as he was using a speech to the EU Parliament in Strasbourg to call for ‘the biggest fiscal stimulus the world has ever seen’.
The International Monetary Fund forecasts that the UK will rack up the biggest deficit of any leading nation next year, while the pound has tumbled by nearly 30 per cent amid fears that the Treasury cannot afford its massive borrowings to cover bank bailouts and collapsing tax revenues.