Tuesday, April 17, 2012

Here we go again.

Looks like the government are about to hive off another £10 billion to the IMF to bail out the €uro as it spirals ever closer to complete collapse. A case of throwing good money after bad, particularly when it's our money and not the governments.
A NEW £10billion handout of British taxpayers’ cash to prop up the failing euro is set to spark fresh anger at George Osborne.
The Chancellor is expected to agree a hike in the UK stake in the International Monetary Fund at talks in the US later this week in the hope of boosting global economic confidence.
MPs believe he will raise the contribution from the current £30billion right up to the £40billion maximum limit set by Parliament last year.
The expected increase in Britain’s IMF contribution is equivalent to £400 for every household in the country.
But any extra British payment for the fund is bound to anger hard-pressed taxpayers and pensioners fed up with seeing their hard-earned cash squandered on supporting the crisis-hit European single currency.
Ok, it's a loan and we will (probably) get it back, though if there is a complete collapse, perhaps not. Again though this is money which should be spent elsewhere, though government over the last 15 years have increased both the size and in some respects the power of the state to such an extent that £10 billion is just small change to them (though sadly not to anyone else)  Currently the government figures on borrowing show it at around £168 billion and the National debt is about to go over a trillion. Government borrowing, to give you an idea of how bad it is, the UK went bust in 1976 running a budget deficit of 6% of GDP. In 2010 that deficit is going to top 11%.
The government is playing with fire, if the €uro collapses the knock on effects to our economy could be catastrophic. Instead of developing markets elsewhere, we're tied into a trade cartel which is likely to take us down with it.
We need to get out of the EU, cut back the state and start finding new markets quickly, though I suspect that we're already too late.

2 annotations:

WitteringsfromWitney said...

As you say QM, government has no money of its own it only has our money.

Not only is he not asking parliament, which is what Carswell wants,he is not asking those whose money it is.

Not only do we need to be out of the EU, we also need to be without the present incumbents in the HoC.

Anonymous said...

Dear Quiet Man

A trillion here, a trillion there and pretty soon you're talking serious money.

How can mere mortal deal with people with that kind of mindset?