Thursday, December 6, 2012

Cuts Didn’t Work: National Debt and Deficit Rising Exponentially

Keelan Balderson, Contributor
Activist Post

Chancellor George Osborne has his tail between his legs today as the coalition has failed to reach their deficit reduction targets.

Despite crippling cuts, overall the government is actually borrowing more than ever. In fact, mathematically speaking, there has been NO reduction in government spending at all, and the deficit is rising by around £120 billion per year [1].

Initially the Conservatives claimed the deficit (the amount of extra debt that’s added on to the total national debt each year) would begin falling by 2015-16, thanks to their austerity drive to slash public services and the welfare bill. However, today Osborne announced that this forecast will have to be pushed back to 2016-17, and independent analysts say even then it’s highly unlikely that a reduction will be reached [2].

What this means is that successive governments have borrowed so much that the cost of interest payments on the debt and maintaining front-line public services has reached a level where it is virtually impossible to prevent further borrowing and further debt. Britain has fallen off the deep end.

The reality is that we’re £4.8 trillion in the red (including unfunded pension costs [3]). Any rhetoric from the coalition or Labour is simply hot air. While George Osborne accepted today during his autumn statement that there are ‘no miracle cures’, he proceeded to pretend that he could actually do something about the problem.

Really there are only two options. A real cut to public spending, which would completely decimate the middle and lower classes. Take the current level of cuts and multiply it by oblivion. Or a systematic change to the financial system and the method by which the government raises finance.

So far the big three parties have all chosen austerity, despite it being abundantly clear that the current method of taxation and borrowing does not work.

The amount raised by taxation comes nowhere near the amount needed to fund the ideology of our modern leaders, who are hell bent on European integration, perpetual war and corporate collusion. The borrowing they undertake to make up the difference is also out of control and is ultimately the burden of the general public anyway.

Ignoring this reality, Osborne outlined plans to push forward with around £15bn in extra cuts [4]. This will apparently come from the welfare budget, which has already been cut by an unrealistic £10bn. Other pitiful ideas being tossed around are a Mansion Tax, putting pressure on tax avoiders (a meaningless proposal unless the law is changed) and cutting tax relief on pensions. He also suggested a further 1% cut to corporation tax, to get businesses moving again.

Whether it’s cluelessness, denial or conspiracy, the journey to 2017 is not going to be a fun one.

Keelan Balderson is an independent journalist, documentary filmmaker and Internet radio host from the UK. You can listen to his WideShut Webcast every Monday at 8pm GMT on Resistance Radio. Please support his work by visiting his website:


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Anglo Saxon said...

What is the real level of unemployment in the UK these days? The MSM keeping quoting 3-million unemployed. So what planet are they living on?

Could 8-million be the more accurate figure for the true number of those unemployed in the UK today?

This rot goes back a long way. But decline was greatly accelerated by that Anglo-Jewish Administration headed by Margaret Thatcher, the former MP for Barnet (a North London political constituency thoroughly dominated by so-called 'Jews' who had slithered into the country from the Pale of Settlement prior to the First World War).

If (when) the Derivative Bubble bursts then it is "game over" for Britain, and especially England. I mean, it will truly be the total end ... Finito. And sheer hell for those finding themselves still inside that nation's grubby cities.

Anonymous said...

Austerity does not work. Only job creation will bring the economy back to life. If the middle class and poor have no money to spend, the economy continues to decline. The rich cannot make up the difference in spending.

Rebuilding vital infrastructure is the key to job creation. You put people back to work and you rebuild. In the end your spending increases as well as your revenue, and you end up with necessary things rebuilt new for the future.

Trickle down is total BS and starving the beast only brings more grief and pain for all.

Anonymous said...

This financial and economc crisis is scientificallly created by the Elite Globalist Banking CABAL of the NWO that are members of the Illuminati. This objective is being best attained by outsourcing of manufacturing jobs off-shore and the devaluation of the U.S. dollar. It is a trick of monopoly capitalism and high finance. The bottom line is fraud. The people that are most accountable are: 1-The 2/3rds majority of the congress that voted to repeal the Glass Steagal Act that deregulated the banks and caused the sub-prime mortgage collapse. 2-Passed NAFTA and GATT under the guise of free trade. The U.S. is an oligarchy ruled by plutocrats that do not have the best interest of the majority of working men and wormen. To add insult to injury, they come begging with out-stretched hands to the people that pay the majority of the taxes to bail them out when their is a financial crisis. There is absolutely no method to pay off the national debt because it is growing exponencially due to compound interest. Eventually this is all going to come home to roost. When they deregulated the banks the political hacks let the fox into the hen house. They have administered a series of economic shocks. The next bubble to burst will be the derivitives bubble which will be the final death stroke.

Anonymous said...

Annonymous is right. The illuminati have engineered all this to get a total collapse on top of an alien attack from space so to unite all mankind as one and they be the global rulers insisting on Luciferian worship after the destroying of christianity.

Anonymous said...

if i knew how to use the comment identity choice, i wouldnt be anonymous. Its rather unexplained as to what those choices are.

JCII said...

select profile - name/url has been the best I've been able To do...

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