IMF endorse coalition spending cuts

[Rupert_Baehr]

Let's hope that the cut's don't have the same effect that they're having in Ireland.

 

Oh we will be sending the world more of our cash, but not in the form of flood aid.

 

Budget 2010: Interest bill on UK government debt set to soar

More than 10p in every pound of tax Britons pay will within four years go straight on the Government's ballooning debt interest bill, according to figures underlying the Budget calculations, it has emerged.

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The UK is faced with hefty interest payments, both on the debts run up by Brown & Co and on those which will be run up by the coalition. - The coalition have promised drastic cuts in expenditure, but those cuts will reduce the rate at which they borrow money, they won't (in the life of this Parliament) stop the overspending and they certainly won't repay any of the debt.

 

A large part of the problem facing Ireland appears to be that the lenders are reluctant to lend more money to that country, because they think Ireland will have difficulty in repaying the loan (or in making the interest payments, for that matter.)

 

Interest rates on loans reflect the level of risk. - The greater the risk, the higher the rate of interest. Ireland pays significantly higher interest on its loans than does the UK. The IMF's approval of the coalition's actions is important to the country, because that will lead to lower interest rates on the considerable sums the government will be borrowing for the forseeable future. Much of the UK's present debt is long-term debt and was arranged at reasonable interest rates. The government will still be borrowing for the life of tis Parliament but at what interest rate?

 

It is because economists see the economy as just numbers - they don't care about unemployment, or people without enough money to live, or anything that makes life worse, as long as it makes the numbers look better. Until the next crisis, then it starts all over again.

 

Because that's their job. The government is responsible for looking after the people. Keynes said that one of the prime responsibilities of a government is to ensure maximum employment. - It's difficult to argue with that, but it's also difficult to see how this government can keep people in jobs - jobs, many of which involve 'make work' - when the previous lot overspent by such a massive amount.

 

If the coalition government fails to reduce the deficit significantly, then perhaps the money lenders will treat the UK in the same way they are treating Ireland. Yes, they will lend money - for the time being, anyway - but they will require very high interest rates (and they will probably require that the loans be insured, which will add further to the cost.)

[RosyRat]

I was replying to Billo's post that jobs are being lost left right and centre which,at the moment,isn't true...we'll need to see how many of the public sector workers can find employment in the private side of things I suppose..

 

What jobs in the private sector? The private sector relies heavily on the public sector for finance and employment. Most Council services are outsourced to private companies. Nationally, the NHS employs and contracts out to the private sector for care packages, aids and adaptations, laundry etc etc. The private sector is going to be massively hit by cutbacks in public spending. There will be no jobs for anyone to fall back on, either in the public or private sector.

[MeMyself&I]

http://www.bbc.co.uk/news/business-11419937

 

 

 

 

So, a ringing endorsement from the IMF. What say you about that you coalition bashing lefties?

 

 

 

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They endorsed some of the actions by the last government as well! That's what the former LibDem getting more left wing by the second says

[Defoe]

The history of politics, financial institutions and governing bodies is littered with its members stating that the easy way out of a dilemma that it has created is to make other less guilty and more honest people suffer for their mistakes.

SO....nothing new there then...IMF.....( actually the dyslexic members of the IMF own MFI)...

[MeMyself&I]

I've thought of how both the Government and the Council can save money.

 

Pay and Grading for Execs. SCC did pay and grading for people under £54k, have promised to do the same for the ones above (we're still waiting for you to do that)

 

But, pay and grade the Chief Execs - comparing one post with another. Chief Exec of Birmingham City Council has 55,000 staff to manage, due to outsourcing John Mothersole only has 13,500, so surely he should get less than one third of the other fellas pay?!?!

[donkey]

http://www.bbc.co.uk/news/business-11419937

 

 

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Did the IMF predict the credit crunch and advise measures to avert it? What exactly is it the IMF has done that gives them any credibility? Isn't it an organisation run by financiers and bankers? and. HELLO, wasn't it financiers and bankers who caused the credit crunch?

 

 

 

 

 

So, a ringing endorsement from the IMF. What say you about that you coalition bashing lefties?

 

 

 

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I say it's a bunch of bankers supporting a government largely consisting of a bunch of bankers in their efforts to make ordinary members of the public pay for the losses incurred by a bunch of bankers.