Forget the Budget. The IMF's Global Financial Stability Report has just produced the figures Gordon Brown didn't want you to read: the cost to the UK taxpayer of the banking crisis. The Treasury's approach is to airbrush banks out of the picture, and kid us on that we'll get the money back eventually. The IMF gives it to us straight. It estimates (p44, pdf) that when this is over British taxpayers will have the largest bill in the G7. The bank crisis will cost the UK some 13.7% of GDP - which works out as about £190bn (see graph below). The figure for the US is 12.1% and Canada just 2.8%. Again: this isn't a paper loss. This isn't made-up money. This is the net fiscal cost to the taxpayer of the bank rescues: money that can only be recovered by raiding our wallets, pay packets or pension funds.Gordon's problem is he thinks that the way to resolve the rapidly deepening economic crisis is via 'stimulus packages' with magic money plucked off the magic printing press.
With the ultimate of getting the banks to lend again and rebuild the very credit bubble and circumstances that landed us in the shit in the first place.
Like holding an alcoholics meeting in the local pub, you get full attendance but they all end up dead.
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2 people have spoken:
This is outrageous, and needs exposing. I'll be linking to this on my blog. We really are in the shit. This idiot has single-handedly dragged this great country into a dirty great big hole which, after he's booted out of office, sitting back on his huge fuck off salary, he won't have to worry about. I despise him.
if you wanted proof that gordoom is away with the fairies, this is it.
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