Monday, January 17, 2005

gordon brown's Miracle

I dont know how he does it, but he pulls the wool over journalists' eyes so easily.
He's managed to do this one for years and I keep reading about his Golden Rule and whether he is gonna keep to it that its really laughable.
I apologise for not drawing a graph to illustrate this joke, but it is quite easy to see without going into heavy maths.
He states that over a 6 year period [ish - its meant to be vague so he can fudge -- but that's another story] that he'll only nick enough of our money to pay for investment and will not nick our money to get the government into more debt.
That said he has a minor fudge cos he says that he wont borrow more than 40% of our GDP - ie the rule is worthless on that front .......
Anyway what did he do ?
At the start of his 'ship he stuck to the Tories spending plans , this kept borrowing down for about 5 years ? and enabled him to pay back debts.
Thus hes quids in at this point........
Then he decided to stick to his promise , ie to spend up to his limit. Fair enough and everyone knows about this - and is the cause of all the discussion.
As he has been accelerating his spending up to now---- assume he is gonna hit his 'golden rule'----- he is going to start the next with spending as at present by definition--- but his rate of spending is increased by his curmudgeonly act at the start , thus its well out of control before he starts .
[ It is awkward to know what he'll do with this problem. My guess is he'll borrow up to 40% of GDP, but also borrow loads more from business 'off the books'
In case you don't know what that means - its another wrinkle he uses a lot- a company pays you to build/run a facility - say a hospital- say £100M to build it. Then they charge the government say £25M/year for 25 years as it's share of the cost. Result ? the government saves £100M of course in borrowings. End result ? one more term of office for Labour . Bless :)
]

No journalist/media guy has looked at the next cycle and what it means cos Brown has managed to keep the debate about this year's spending only.
How does he do it ? The man's a flipping genius in subterfuge ! and he doesnt care neither about the consequences

IT IS VERY WORRYING .....

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