This afternoon Ed Balls MP, the Shadow Chancellor of the Exchequer, the man who would like to run the economy of the United Kingdom, promised to send the UK economy into recession by 2020 at the latest.
That is in addition to promising to subsidise the profits of large corporations via his Six Month Guaranteed McJob scheme. No choice offered obviously.
The UK economy runs an external deficit of 2 to 3% of GDP, and corporations have been net saving at least 2% of GDP since 2002. That is unlikely to change. Which means with a balanced government budget, either the financial sector or the household sector is going to have to be borrowing at least 4% of GDP more than they are saving to keep things going.
The sectoral balances are quite clear on the matter
Even if Balls is giving away mortgages on the back of cornflake packets, that is unsustainable. The level of leakage is too high, and it will drive the economy into recession if sustained.
Balls is the MP for Morley and Outwood. His constituency contains the graves of my forefathers. A good part of it is old mining country and it is by no means a wealthy area. The people that now live there will, once again, suffer needlessly due to the promised 'cuts' and the subsequent recession.
They are being deliberately lied to by the man who would be king.
They deserve better than that.