Tuesday, September 15, 2009

Gordon Brown to UK People: "I Must Tell You the Tough Truth..."

It looks like the United Kingdom, which is not run by a duopoly of parties who basically have turned into 1 ruling class actually is bowing to pressure to cut spending.

Gordon Brown to UK People: "I must tell you the tough truth about the hard choices." "Labour will cut costs, cut inefficiencies, cut unnecessary programs and cut lower priority budgets.”


US Politicians to US People: "You can't handle the truth, we have more programs coming to subsidize the economy and if you want a home, car, or fridge - please call your local representative at 1-888-Steal-from-Grandkids"

Loosely translated: "You don't want the truth because deep down in places you don't talk about at parties, you want me spending future generations money for today's generation. You need me spending future generations money for today's generation. We use words like spend, buy, consume. We use these words as the backbone of a life spent keeping Americans believing we are working in their interest while simply trying to preserve our Congressional jobs, with no regard for long term consequences."

"Did you order the new generational theft bill?"
"I did the job..."
"Your #@&*#&@*# right I did!"

[End of scene]


The US is running out of fellow reckless teenagers in the globe - we might be the last one staying out late, stumbling home at 4 AM after a night of drinking and skipping class. Luckily we are the biggest and baddest bully on the block and since the younger generation won't do a thing about generational theft, we can continue down this path for a while more. Prosperity - here we come.

Let's see what is happening in the country that most resembles the US in terms of actions the past decade.
  • Prime Minister Gordon Brown said Britain’s Labour government will have to cut spending in order to reduce its debts, bowing to pressure from the Bank of England, Standard & Poor’s and opposition politicians.
  • “I must tell you the tough truth about the hard choices,” Brown said in a speech to union leaders in Liverpool today. “Labour will cut costs, cut inefficiencies, cut unnecessary programs and cut lower priority budgets.”
  • It’s the prime minister’s most explicit statement yet on the need for restraint on government spending and a reversal of his position in June, when he pledged more investment in the face of calls from the Conservative Party for reductions.
  • The time for generalities is over,” Vince Cable, the Liberal Democrat lawmaker in charge of his party’s Treasury policy, said in London today. “We need to debate when, how and where the cuts will come.”
I believe this discussion will come in the US circa 2030, maybe 2050. Most likely whenever it happens it will be only due to a magnificent crisis - it certainly won't be proactive; but reactive.
  • The Treasury plans to sell a record 220 billion pounds ($362 billion) in debt this year and next year expects a deficit above 12 percent of gross domestic product, the most in the Group of 20 nations. Standard & Poor’s has threatened to downgrade Britain’s AAA credit rating.
  • Bank of England Governor Mervyn King today reiterated his concerns about the deficit. “Everyone is concerned that we get back to a position where the public finances are on a sound footing,” King told lawmakers in London today. “The failure to do so might create risks in terms of the cost of financing.”
Mr. King - it is much better to talk about concerns in generalities (to win votes) while acting in completely the opposite manner. We have that down pat.
  • Dave Prentis, general secretary of Unison, said he was concerned by the lack of detail in Brown’s pledge to save money by “cutting lower priority budgets.” “He’s got to put a lot more flesh on the bones,” he said. “We really need talks about what he means by waste, what he means by back-room services, and how deep he thinks cuts will have to go.”
  • Brown said that the spending reductions the Treasury already plans will “cut the deficit in half over the next four years” and that the U.K. is acting with America, Germany and France to keep debt “around 80 percent of national income” and to reduce it as the economy rebounds.
  • While the government plans to reduce the deficit to 5.5 percent of GDP by 2014, the stock of public debt is forecast to more than double to 1.4 trillion pounds, the current value of the U.K. economy. S&P has said that level of debt isn’t compatible with a top-notch credit rating.

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