King contra Brown
Peter Hoskin 2:26pm
Ben Brogan's got it right. Mervyn King has just "blown a hole" in Gordon Brown's strategy for the next few weeks and months, by telling the Treasury Select Committee that there's no case for another fiscal stimulus. Here are the BoE governor's exact words:
"Given how big [UK fiscal] deficits are, I think it would be sensible to be cautious about going further in using discretionary measures to expand the size of those deficits.The level of the fiscal position in the UK is not one that would say: 'Well, why don't we just engage in another significant round of fiscal expansion?'"
If Brown now does push for a further fiscal stimulus at the G20 and in April's Budget, then he's now doing so against the advice of King, some prominent organisations and perhaps even his own Chancellor - in which case, you hardly sense the media and public will be behind him. But if he backs down, then Brown's flurry of activity over the next few weeks will certainly result in the damp squib it always promised to. All will not be well in Strasbourg today.
Previous
Roger
March 24th, 2009 2:39pm Report this commentDoes anyone really believe that McBust's flurry of activity is anything other than smoke to obscure the truth from anxious voters?
Publius
March 24th, 2009 2:55pm Report this commentJust wait for the Number 10 thumbscrews to come out. Will King then suddenly discover that he "misspoke"?
... Either that, or Plod will suddenly discover 100kg of cocaine in King's office in the BOE.
Wilhelm
March 24th, 2009 3:04pm Report this commentBroons nothing more than a street thug, according to Chris Mullins book, Broon was phoning up people at midnight effing and blinding to people who dared to disagree with him in 2001.
Pathologically flawed, psycho more like.
Sir Graphus
March 24th, 2009 3:06pm Report this commentGiven that Sir Merv is pretty cautious with his public statements, even by banker standards, he won't have said this unless there is significant political pressure from somewhere (?) for "another significant round of fiscal expansion".
It means that Gordon can't order it done unless he completely scraps any final pretence at BoE independence.
Rhoda Klapp
March 24th, 2009 3:25pm Report this commentLeaving aside the question of whether the stimulus, waht stimulus. What measures have been taken which might actually lead to a stimulus to the economy? The VAT thing? Don't make me laugh, that was always a crock. What they've spent money on is buying a share in bad businesses. No stimulus there. We've discussed at length how putting money in people's pocket, if it were to be done, would only result in paying down debt and saving the rest. Check out the credit card repayment figures.
The stimulus is a con. Each nation is pretending that it has a running stimulus package, while waiting for the others to stimulate and then export to them. I cannot understand why the discussion in politics world is so detached from reality.
Tiberius
March 24th, 2009 3:27pm Report this commenthttp://www.youtube.com/watch?v=ATz3AdbjyRI
Sally Chatterjee
March 24th, 2009 3:31pm Report this commentEven Gordon Brown knows this. He is trying to make his fiscal stimulus look impressive but in actual fact it is one of the smallest (as a % of GDP) in the G20.
Above all, the Treasury's own numbers show fiscal *tightening* from 2010 onwards.
So Brown is saying one thing but actually doing the very opposite. Someone needs to shine more light on the gap between his rhetoric and his own government's numbers.
Diswiss
March 24th, 2009 3:38pm Report this commentExcellent. A little honesty at last, though a little late.
Paul B
March 24th, 2009 3:39pm Report this commentWell said Sir Merv. The emperor is naked, he has no clothes on. Thank you for pointing it out to the country
Oscar
March 24th, 2009 3:42pm Report this commentHopefully the grown ups will now make sure the Prime Mentalist stops playing with his fiscal stimulus and quantitative easing packages, putting them safely back in the bathroom cabinet.
Pete
March 24th, 2009 3:51pm Report this commentQuick! Order some new phones...
TrevorsDen
March 24th, 2009 4:00pm Report this comment"Plod will suddenly discover 100kg of cocaine in King's office "
Why are the police so quite about the Damien Green affair?
How long do these things take?
GeoffH
March 24th, 2009 4:08pm Report this comment"Either that, or Plod will suddenly discover 100kg of cocaine in King's office in the BOE."
You mean the consignment that Brown will presumable 'mule' back from his South American trip?
John Page
March 24th, 2009 4:18pm Report this commentSecond headline in Five Live Drive, so it's going to get a wider audience.
johnny come lately
March 24th, 2009 4:28pm Report this commentBrown now has sold his soul to the EU!! His speech was an absolute disgrace.
The British Parliament voted overwhelmingly to endorse the Lisbon Treaty.
BUGGER THE PEOPLE. We are now in a totalitarian state!
A.F.
March 24th, 2009 4:40pm Report this commentUnlike Merkel and Zarkozy Brown feels he does't have time to await the outcome of recent stimulus,he's facing an election in a year or a leadership challenge even sooner.In addition, deep down he knows he carries a huge burden of responsibility for our present circumstances.
George Laird
March 24th, 2009 5:04pm Report this commentDear All
When Brown proposed the first fiscal stimulus I thought it was a mistake, events proved it was.
The strategy should be what to save, what leave to go to the wall and what areas to move into promote growth.
This stratgey should be transparent for the public.
Yours sincerely
George Laird
The Campaign for Human Rights at Glasgow University
Rhoda Klapp
March 24th, 2009 5:10pm Report this commentWould anyone like to tell me what the stimulus was? I've heard of it, but I have no notion of what it is. The VAT cut was delivered, but that's the govt foregoing money it probably wasn't going to get anyway. Of course it didn't apply to any company spending in net terms.
I do know that other bits of the so-called stimulus have been delayed, but that things like funding for colleges are stuck in limbo, the aircraft carriers are delayed, PFI firms can't get credit etc etc. That all adds up to no stimulus and quite a bit of anti-stimulus.
So what are they talking about? It's just a con, right?
richardj
March 24th, 2009 5:32pm Report this commentI smell a governer's resignation if further irresponsible measures are made by the unelected one.
Oscar
March 24th, 2009 5:37pm Report this commentTop headline on PM with priority given to an interview with George Osborne. "This is a defining moment". Yes it is.
Publius
March 24th, 2009 5:58pm Report this commentJust on Brown's disgraceful address to the EU Parliament -- "I've delivered you the British people on a plate, so now you owe me" -- I am glad to see that the first-rate Daniel Hannan has managed to tell the smirking Brown what many of us would dearly like to tell him.
mac
March 24th, 2009 6:23pm Report this commentDaniel Hannan's skewering of Brown over at Guido
is masterly.
Bernard O'Connor
March 24th, 2009 6:37pm Report this commentBrown has been rumbled
Euphorbia Bean
March 24th, 2009 7:17pm Report this commentI think you have to remember that Gordon Brown comes from Scotland.
Scotland is existing on money from England's tax payers.
Is Brown the right man to tell not to borrow money? Can you expect him to listen?
Wilhelm
March 24th, 2009 9:02pm Report this commentEuphoria Bean
Gordon Broon doesnt come from Scotland, he said to Diane Sawyer of ABC News last year '' I come from North Britain .'' and the cock crowed 3 times when Gordon Broon denied his own country.
Ever heard some one saying'' I come from west Britain '' meaning Wales or '' I come from south Britain'' meaning England ? NO one says that.
Broon is in deniel of his own country because he wants the top job in England so he can strut around like Mussolini.
Tankus
March 25th, 2009 12:21am Report this commentnotice that retail prices have now creeped back up to --.99p ... so retailers are trousering the VAT cut to improve margins and not now passing it on .
choice !
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