Thursday, June 25, 2009

Bank of England Governor slams government borrowing!

The Governor of the Bank of England, Mervin King said today that the governments plans to reduce the governments deficit were not ambitious enough.

In other words, spend less or borrow more. Possibly both.

Considering that Labour's published plans, based on possibly optimistic growth forecasts are not fiscally tight enough. The problem is that the governments plans on spending are harsher than Thatchers as it is.

Meanwhile the OECD thinks we are going to have a deeper recession than they previously forecast and much worse than the governments own assumptions.

In short, there are grim times ahead.

The BBC has this.

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