Osborne takes the stick to Labour legacy

Posted on: 09 June 2010 by Gareth Hargreaves

Chancellor of the Exchequer, George Osborne, has proved the best form of defence is attack after dishing out a whooping to predecessor Alistair Darling in Parliament.

Osborne took his opportunity to stick the boot into Darling over the mess Labour left the country's finances in. Darling bounced back saying it was just Tory politics to blame and then change the things they really wanted to do but were too afraid to the tell the electorate.

Good political banter and fun for all. However, the truth is that Osborne is dead right. We have so much debt it is going to take a decade to clear it. On of the world’s leading ratings agency is warning that we are in such a mess that unless we do something our global credit rating will be marked down – result, we will have to pay more to borrow money!

George is just reinforcing the line his superiors, David Cameron and Nick Clegg have been peddling this past week, that we are in for tough times ahead.

US Federal Reserve boss, Ben Bernanke, is similarly cautious in his forecasts for the economy, “My best guess is that we’ll have a continued recovery, but it won’t feel terrific,” he said.

“Even though technically we’ll be in recovery and the economy will be growing, unemployment will still be high for a while and that means that a lot of people will be under financial stress,” is his sobering view. America recently announced very disappointing employment figures – far worse than was expected and, along with Bernanke, the pundits over there are very fearful of a significant slowing of their ‘economic rebirth’

Spain has protests and disquiet in the streets after cutting public sector pay by 5%. Greece is a basket case and will stay that way. Hungary is looking like it is on the brink of needing serious money to bail it out and the EU has just earmarked 750 billion Euros to buy back Member States bonds.

Sterling is on the floor but there has been no boost to exports! The FTSE 100 is falling steadily and shows no sign of stopping and gold prices keep rising. These are very worrying times.

It will not surprise me one bit if the next set of UK statistics show that we are on our way back in recession by the end of the third quarter of this year.

What will this mean to you and me? Don’t even think about it. Just stay liquid, husband your money and your jobs (if you have one.) and keep you heads down and tell anyone you love to do exactly the same thing.

The financial roller coaster will be starting again very shortly!

Button it, Obama!

I’m really getting fed up with Barack Obama bashing BP and its Chief Executive. Yes, the oil spill is terrible and we all sympathise with the plight of the region and hope it gets sorted soon ... but, first things first – the damned rig that blew up was run by Americans from an American company that owned and operated it under contract from BP. So where is the blame and why is he hitting out at BP. Simple answer - he has elections coming up in November and he has to be seen be a tough guy.

Okay, Barak, we’ve got the picture but I promise you we will not forget or forgive this shortsighted grandstanding. So the next time you want to know 'whose ass to kick', take a good long look in the mirror!

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