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http://uk.news.yahoo.com/22/20090422/tts-uk-imf-d1d4700_3.html
This is something we all know, but what interests me is these small paragraphs:
"A key concern is that policies may be insufficient to arrest the negative feedback between deteriorating financial conditions and weakening economies in the face of limited public support for policy actions," the IMF said....
....In offering new economic projections, the IMF said government measures to battle recession should be sustained, if not increased, in 2010, warning that premature withdrawal of stimulus could set back a recovery.
Now I don't believe the IMF folk are the only great experts on these things than any other skeptic: but I do feel they know a bit more about it than, let us say, George Osborne and David Cameron, especially after hearing what George and David have both been spouting in the past couple of days in the lead up and response to the UK's Budget.
They did say that the Budget had condemned the UK to ten years of financial hardship. Hmmm. My inexact back-of-an-envelope calculations when the crisis first happened last year was for much longer: generations even. I wonder how short the financial hardship will be under Cameron and Osborne? Especially given their stance against much [note emphasis] of the deficit budgeting currently being deployed in the fight against recession. I'm sure George Osborne and David Cameron would bail out the banks whatever....I just doubt that they'd continue funding other things like social services, welfare, and provisions for the newly unemployed. We'll see, as they're odds-on to be elected, and some of us have long memories. I may put a fiver on the Tories winning the next election, but that's just business. I don't know how unhappy I shall be when I collect my winnings.
Given we're officially deflationary and with 2.1M unemployed, I'd opt for spending on infrastructure building: jobs out of greener power etc. That's where deficit budgeting tends to work best: fixing the roof and rebuilding the flood-barriers.
Go well and do good things.
This is something we all know, but what interests me is these small paragraphs:
"A key concern is that policies may be insufficient to arrest the negative feedback between deteriorating financial conditions and weakening economies in the face of limited public support for policy actions," the IMF said....
....In offering new economic projections, the IMF said government measures to battle recession should be sustained, if not increased, in 2010, warning that premature withdrawal of stimulus could set back a recovery.
Now I don't believe the IMF folk are the only great experts on these things than any other skeptic: but I do feel they know a bit more about it than, let us say, George Osborne and David Cameron, especially after hearing what George and David have both been spouting in the past couple of days in the lead up and response to the UK's Budget.
They did say that the Budget had condemned the UK to ten years of financial hardship. Hmmm. My inexact back-of-an-envelope calculations when the crisis first happened last year was for much longer: generations even. I wonder how short the financial hardship will be under Cameron and Osborne? Especially given their stance against much [note emphasis] of the deficit budgeting currently being deployed in the fight against recession. I'm sure George Osborne and David Cameron would bail out the banks whatever....I just doubt that they'd continue funding other things like social services, welfare, and provisions for the newly unemployed. We'll see, as they're odds-on to be elected, and some of us have long memories. I may put a fiver on the Tories winning the next election, but that's just business. I don't know how unhappy I shall be when I collect my winnings.
Given we're officially deflationary and with 2.1M unemployed, I'd opt for spending on infrastructure building: jobs out of greener power etc. That's where deficit budgeting tends to work best: fixing the roof and rebuilding the flood-barriers.
Go well and do good things.
