Thursday, December 11, 2008

German finance minister shoots Gordon Brown's fox!

For a long while Gordon Brown has been able to get away with the lie that everyone else is planning some huge "fiscal stimulus" and everyone the whole world over agrees apart from the Conservative party.

Well Germany's Social Democrat Finance minister, Peer Steinbr├╝ck has truly burst his bubble in this interview with Newsweek.

Here is a key quote:
The speed at which proposals are put together under pressure that don't even pass an economic test is breathtaking and depressing. Our British friends are now cutting their value-added tax. We have no idea how much of that stores will pass on to customers. Are you really going to buy a DVD player because it now costs £39.10 instead of £39.90? All this will do is raise Britain's debt to a level that will take a whole generation to work off. The same people who would never touch deficit spending are now tossing around billions. The switch from decades of supply-side politics all the way to a crass Keynesianism is breathtaking.
Ouch. It appears that not everyone agrees that Gordon Brown has saved the World!

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