Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
27 September 2010
16:2872725One in the eye for Labour and the deficit deniers....
Quote from the latest IMF report:
"The UK economy is on the mend. Economic recovery is underway, unemployment has stabilized, and financial sector health has improved. The government's strong and credible multi-year fiscal deficit reduction plan is essential to ensure debt sustainability. The plan greatly reduces the risk of a costly loss of confidence in public finances and supports a balanced recovery.
"The government's strong deficit reduction plan will ensure fiscal sustainability. The fiscal mandate of balancing the cyclically-adjusted current budget by 2015/16 is appropriately ambitious. The plan's credibility has been bolstered by a frontloaded path that achieves the mandate one year early and by a suitable mix of concrete spending and revenue measures. The consolidation plan and implementation of early measures to tackle the deficit—one of the highest in the world in 2010—greatly reduces the risk of a costly loss of confidence in fiscal sustainability and will help rebalance the economy. These benefits outweigh the expected costs in terms of adverse effects on near-term growth. Indeed, market reaction to the adjustment plan has been positive."
This is an important endorsement of George Osborne's approach.
27 September 2010
16:3572727Phew. Misread that as IVF Boost Osborne! Doesn't bear thinking about....
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
27 September 2010
16:5172729LOL Bob...
howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
27 September 2010
17:4672739i saw that report, any recovery is down to the policies pursued by the last government, i am surprised that the i.m.f. have made such comments when no measures have actually been put in place,we are awaiting the november spending review.
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
27 September 2010
18:4772750Howard - do read the report properly.
The IMF have backed George Osborne's defict reduction and been very positive about it. They state that """The government's strong and credible multi-year fiscal deficit reduction plan is essential to ensure debt sustainability. The plan greatly reduces the risk of a costly loss of confidence in public finances and supports a balanced recovery""""
That is an endorsement of Osborne, not the half hearted Darling plan to merely halve the deficit over 5 years.
It also says """The consolidation plan and implementation of early measures to tackle the deficit—one of the highest in the world in 2010—greatly reduces the risk of a costly loss of confidence in fiscal sustainability and will help rebalance the economy.""""
Note the words 'early measures' and remember the rows during the election, Osborne saying we must cut now while Darling and Brown were saying delay cuts a year.
This IMF report totally vindicates Osborne's approach.
note also the last comment ''These benefits outweigh the expected costs in terms of adverse effects on near-term growth. Indeed, market reaction to the adjustment plan has been positive."''
This also endorses Osborne - not Darling.
The rug has been pulled from under Labour's deficit deniers.
howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
27 September 2010
19:1972754barry
i have read the report, they said the same to the irish republic who have already instigated their austerity measures, result stagnation not growth.
are you also saying that the i.m.f. are praising the present government for the present healthy state of things?
not how i read it, they referred to "plans" only.
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
27 September 2010
20:1572762They are praising the present UK government for the deficit reduction plan and acknowledging that it has already given the markets confidence.
Its there Howard - in black and white, fully endorsing Osborne.
Even the BBC agree...amazing that!
Quote Stephanie Flanders, the BBC Economic Editor "It couldn't be better timing for George Osborne. On the day that Labour's old and new guard debate just how outraged to be about the government's deficit plans, the IMF has given them a resounding thumbs up."
Yes Howard she uses the word: resounding.
She also says: "In the body of the report, the staff warm to their theme, and make clear that they consider Mr Osborne's plans an improvement on Alistair Darling's."
Then she says: "In the public relations battle over the deficit, Mr Osborne's team has won an important, and surprisingly unqualified, endorsement."
Unqualified, thats what she said.
I suspect her leftie BBC bosses will be outraged by her and will get her knuckles rapped....But for once the BBC are actually saying it as it is...
Ireland has its own serious problems relating to their Euro membership. If freed from the constraints of the Euro and being to let their currency float they would spark recovery (alongsdie their deficit reduction, a less serious problem than the UK incidentally).
You need only look back to White Wednesday when the UK broke away from the constraints of ECU sparking a recovery as a precedent.
