WHAT DEBT PROBLEM?

Some excellent observations over on our most recent Open Thread concerning how the BBC have treated David Cameron’s suggestion that there is a looming debt repayment on the horizon. Cassandra says..

“Well the toadies invited a couple of well chosen economists whose line was superficially aligned to the newlabour one (funny that eh?) that in fact there is no problem and the markets are confident of the UKs abillity to pay off debt BUT and this is a big but, the confidence is solely based on the firm belief that an incoming new regime will have to drastically cut spending levels and the wholly unexplored implication is that newlabour have utterly failed to spell out a medium/long term cost cutting strategy. Newlabour have gone out of their way to not only not talk about the required massive expenditure cuts they have claimed that they will in fact raise spending levels or at least maintain them!

The BBC is determined to pretend that Brown’s profligacy is “investment” and only house-trained economists are permitted to posit opinion.