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BBC News - 08/05/12

David Cameron has said there will be no "let-up" in tough decisions on the economy while admitting more needs to be done to help the UK "go for growth".

Article continues ...

There's that word again.

Apparently it was described as a "re-launch". Anything that has to be "re-launched" is, by definition, doomed.

Cartoon courtesy of The Independent - 09/05/12

Even the in financial markets that seem to call all the shots these days, people are coming to the conclusion that austerity isn't working; yet these two jackasses lumber on with their ideological programme of cuts. Meanwhile no one is talking about the real issues of limits to growth, steady state economies and climate change.

They aren't really cutting.
What they are doing is following rule 1, 'get out of debt'.

Paying it off is painful but borrowing more is never the answer.

No?

Maybe it is when everybody else is.

Whenever it is clear that the whole ball game is geared to collapse and that all the big players are never going to pay back their debt.....

Or do you really believe that America will one day pay back their Trillions?

JSD, it is impossible for states to get out of debt (at least, it is if all of them decide to do it at the same time) because there is more debt in the system than there is money to pay for it, and every time money is issued, so is a corresponding amount of debt.

It is possible (and indeed advisable) for, say, Chateau Renewable or Chateau JSD to get out of debt. But if everybody else tried to do it at the same time, by stopping spending as HMG are doing, they'd remove our income stream and hence our ability to get out of debt.

A new system for money is needed. They may have to cut down on the borrowing anyway, but without a change in the way money is issued trying to reduce borrowing will merely result in the classic "economic death spiral".

RenewableCandy wrote:A new system for money is needed. They may have to cut down on the borrowing anyway, but without a change in the way money is issued trying to reduce borrowing will merely result in the classic "economic death spiral".

Agreed.

What we gonna do about it?

Well I personally can't change the way money is issued, but I've joined a LETS and could add to (or start) pestering the G20 or whoever in the run-up to one of those summits at which they discuss such things, that they should look at "Positive Money" or CASSE or some such system, before the collective lack of buying-power among the lower orders (including myself, who now buys practically nothing except food) cuts off their income stream completely (and it will).

From a BAU let's get the economy ship-shape perspective, 'austerity' is utter madness and will lead only to devastation.

As others here have done/are doing I'm cutting back my spending as much as possible. I'm still job hunting but would have been doing this anyway. I think it's rather more widespread than the general public realise. Individually they are more 'careful with their money' but assume that everything will carry on regardless

Following the business news shows that retailers who are a 'step down' from another are doing OK e.g. Sainsbury's versus M&S and Waitrose while those at the expensive impulse end of the market are getting hammered.

Naturally those who operate right at the bottom are already in their second or third year of trouble. Here drop down customers are barely balancing those whose disposable income has completely vanished.

This system is broken.
And
TPTB aren't thinking of another system.
So
Individually we need to reduce, or remove our exposure and damn the consequences.