A Daily Telegraph, 13th April 2012 article reads ‘Decades’ of cuts and tax rises ahead.
Britain faces decades of spending cuts and tax increases if the national debt is to be brought under control, economists have forecast.
As any car user knows the distance a car travels depends upon how much fuel is in the tank, reduce the amount of fuel and the car can not travel as far.
When will those who manipulate our economy realise that the fuel Britain’s economy runs on is DEBT?
With no debt, there is no economy.
With over 97% of all the money in circulation being debt based, cutting debt cuts consumer spending, resulting in less demand for goods and services and a shrinking economy. Increases in taxation also has a similar effect, removing spending power from the taxpayers with a resulting fall in demand for goods and services. Overall the effect is less demand and more unemployment. Government funding for unemployment benefits increases accordingly and so even higher taxation is needed to fund that increase.
What has happened to common-sense?
One need only look to Greece to see the effect cutting debt has had. A failing economy, massive unemployment, wage cuts for those still fortunate to have a job and a country that is being driven into the depths of despondency with no sign that it can ever recover.
Over the years the ratio between what is perceived as being real money – coins and currency notes and debt has been widening, with each decade suffering recessions as debt reaches unsustainable levels and has to be reduced. What better evidence is needed than when debt levels rise, so too does the perceived level of prosperity, but as debt levels fall so the economy falls into recession?
DEBT IS THE ECONOMIC CONTROLLING FACTOR
Is that not all too obvious? Then why is it not obvious to those who profess to know how to run our economy? The answer to that question is that though steeped in the complexities of economics, they simple do not understand the very basics upon which our failing financial system is based.
There is no talk about how debt is created. The fact is many do not have a clear understanding of how new money is created. That is why it is essential for us ‘simple’ people to educate them in the basics of an economic system that is no longer fit for purpose and must be changed if Britain is ever to get out of this morass of recession.
It is time for you Mr. Cameron and you Mr. Osborne to come out from under that wall of blinkered, outdated Civil Servants who prevent the light of day reaching you and start listening to those who can see the light of day and think outside of the conventional box.
Yes, without change it cannot be otherwise. There will be decades of cuts and tax rises ahead.