• The post you are reporting:
   
  That is the mechanism that would force the cuts Alexander. The Bond markets in particular are the big problem because it is there where the Government is having to raise the money for its borrowing. The price of gilts could drop forcing up interest rates. Higher interest rates paid by government would mean bigger cuts to pay for it plus we would all end up paying higher mortgage and credit card rates, the economic recovery would be seriously hit forcing us back into recession. This is the counter argument to Labour's claim that we should delay paying off debt . The fact is there is no free lunch, you pay for it one way or the other.

Report Post

Your Name

Reason