UK: Our plan to cut debt is failing

Discussion in 'Economics' started by Grandluxe, Nov 22, 2011.

  1. By James Kirkup, and Robert Winnett10:00PM GMT 21 Nov 2011

    The warning comes as the global economy stands on the brink of a “chronic” debt-driven recession.

    The Prime Minister on Monday conceded that tackling Britain’s debts was “proving harder than anyone envisaged”, raising the prospect that the Coalition would be unable to close the deficit by 2014-15.

    Departing from the deficit-reduction timetable could raise fears that Britain will face rising borrowing costs as bond markets take fright.

    In his autumn statement next week, Mr Osborne will cut his forecasts for economic growth this year and next, blaming the eurozone crisis and the darkening global outlook.

    Almost every Western government is struggling with its debts.

    In Washington, a cross-party committee supposed to devise plans to curb the government’s debt was close to collapsing.

    His gloomy tone was echoed by Mohamed el-Erian, head of PIMCO, the world’s biggest bond investment fund.

    “The sense of uncertainty prevailing in the West is palpable, and rightly so,” he said. “People are worried about their futures. Unfortunately, things will become more unsettling in the months ahead.”

    Rejoice USA! You are not alone. No western government is able to cut it's debt.
  2. benwm


    10 yr gilt yields at 2.17% suggest otherwise
  3. UK hasn't been the same since it went from (net) oil exporter to oil importer four years back. It has been downhill since, and that's not going to change.