That’s the lead story on the UK Telegraph, quoting Mervyn King after last night’s decision to pump an additional GBP75 billion into the UK economy.
What a mess we are truly in. The UK economy is going into stagnation because the UK government is trying to rein in wasteful spending in the public sector, which was being funded by borrowing which is supposed to be for capital account purposes. Europe is in a mess, with the PIIGS insolvent and threatening the future of the EUR. The US is probably in a worse state than any of them, with massive US government debt, which can probably never be repaid, and US private consumer credit card debt, which matches the public debt figure. It really is a case of moving the deck chairs on the Titanic; we’ve spent way too much for way too long and no politician wants to face the hard decisions on their watch. Any magic solutions out there?
