Tags

, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

borrowing

David Cameron must think we’re all as stupid as his fellow Conservatives and that party’s most rabid adherents, if the latest BBC report is to be believed.

In it, he responds to comments from his Coalition government’s own Business Secretary, Vince Cable, suggesting the government could consider borrowing more – at, let’s remember, the lowest interest rates in British history – to inject some growth into the economy.

Cable’s remarks are eminently sensible – which is, of course, why Cameron is believed to be moving so quickly to counter them. The fact is that austerity never – ever – brought a country out of debt. Investment is the key. Investment needs money. If you don’t have money, you borrow it from someone who does. Then you pay them back – with interest from your profits. ‘Speculate to accumulate’, as the saying goes. It’s how most Conservatives and Tory voters made their money but Cameron – and his sidekick 0sborne, let’s not forget – inherited theirs and therefore, we may reasonably deduce, know nothing whatsoever about it.

Instead, Cameron will reiterate his insistence on following the ‘Starve the Beast’ policy that George W Bush used to such devastating effect when he was President of the USA, reducing a surplus of $128 billion to a deficit of $10.627 trillion within a few short years.

A decent definition of ‘Starve the Beast’ economic theory is that it is a fiscal strategy to create or increase existing budget deficits via tax cuts to force future reductions in the size of government.

This is clearly what Cameron and his cronies are doing – and the Liberal Democrats are helping them all the way, no matter what Cable says about it. It’s why they’ve borrowed more money in the last two and a half years than the Labour Party did in three terms of office (as a recent meme puts it).

And they will cut the machinery of this country’s government down to the marrow, for no better reason than their own personal enrichment and the fact that it will create huge problems for any government that follows them in 2015.

The BBC report contains excerpts of what Cameron was expected to say in a speech today (Thursday). These deserve interpretation, as their meaning is not entirely clear at first glance:

I know some people think it is being stubborn to stick to a plan. That somehow this is just about making the numbers add up.” He’s setting us all up with a false premise. We don’t think he’s being stubborn; we know his real plan isn’t what he has been trying to sell us. It’s about cutting the state to nothing, impoverishing the vast majority of us in the process and enriching his cronies. This is why, crucially, the numbers don’t add up at all.

The very moment when we’re just getting some signs that we can turn our economy round and make our country a success is the very moment to hold firm to the path we have set.” So the present moment, with the loss of our ‘AAA’ credit rating, high street shop chains dropping like flies and his own political party regularly being dropped to third place in by-elections, would definitely not be that time.

And yes, the path ahead is tough – but be in no doubt, the decisions we make now will set the course of our economic future for years to come.” This is absolutely true. The decisions he makes now will set the course of our economic future for years to come. What a shame nobody seems able, or willing in the case of the Liberal Democrats, to stop him.

And while some would falter and plunge us back into the abyss, we will stick to the course.” He is projecting the effects of his own actions onto his political opponents. He knows perfectly well that it is his course that will lead us straight to that metaphorical abyss – if he hasn’t pitched us over into it already.

The BBC article goes on to say that he will point to the creation of a million extra private sector jobs – a claim that has been debunked many, many times since he first made it. Private sector jobs have been created, but nowhere near a million of them! Also the terms under which people are being employed are appalling.

It is typical of the kind of ridiculous babble to which he and his lieutenants have subjected us for nearly three years now – a period in which our situation has never – not once – offered even the appearance of improvement.

This blog reported only a few days ago that Cameron had been put on notice by his own party – improve or lose the leadership.

The sooner those backbenchers follow through on this threat, the better.

For all of us.