Wednesday, August 19, 2009

David Cameron warns spending could lead to Britain defaulting on its debt.

I really don't understand why Cameron has felt the need to do this. We all know that, barring an utter miracle, he is walking into Downing Street after the next election, so why does he have to say something as inflammatory as this?

David Cameron today raised the stakes in the pre-election battle over government borrowing when he warned that Gordon Brown's anti-recessionary spending could lead to Britain defaulting on its debt.
That actually goes beyond political naivety and starts to look like he will take risks with the entire country's future in order to ensure that he wins the next election. I mean, it's like he's telling the world that we are almost a bankrupt nation.

Maybe this is new political strategy, where one seeks election by telling the country how crap we are.
Cameron said: "You can get to a level of government debt where, not that it becomes certain that people will cease to lend you the money, but you start running risks of them demanding higher premia, higher interest rates. Or you run the risk of not being able to meet your obligations."
Every time I hear the Tories talk of debt I instantly think of cuts in public services; it's an almost gut reaction based on their behaviour during the eighties. It's what Conservatives do. We all know that this debt was caused by the greed of people in the city, but we also know that the Tories are going to claw that money back by punishing the very poorest members of our society.

But to suggest that things might get so bad that we default - especially in the global market in which we all live - is simply suicidal.

But last night an aide to Alistair Darling said: "It was an extraordinarily stupid thing to say which betrays his inexperience and opportunism. Rather than scaremongering, David Cameron should explain why he thinks it is right to undermine prospects of recovery by cutting spending now."

John McFall, Labour chairman of the Commons Treasury select committee, also condemned Cameron: "This is economic policy by innuendo. It serves no one, not least the government and not himself as an aspirant to government, to frame the economic debate in such loose language. He knows himself that this is a global problem." The row broke out after Cameron highlighted the government's record level of borrowing and accused the government of taking unnecessary risks with borrowing and debt levels.

Cameron made these remarks whilst appearing with the controversial American academic Nassim Nicholas Taleb. Appearing with oddballs appears to be becoming a habit with Cameron, with some of his alliances in Europe beggaring belief.

Taleb also has a curious set of beliefs.

Taleb outlined a series of contoversial views today:

• Climate change is not man-made.

• Barack Obama could be blamed for hyperinflation.

• Economic crashes are a good thing.

The oddest thing here is that everyone in Britain knows that Cameron is going to walk the next election. All he has to do is keep smiling and avoid controversy.

Why then does he spend so much of his time forgiving nutcases like Dan Hannan - after he described the NHS as "a sixty year old mistake" - by offering him a chance to address the Tory Conference; and hanging around with European extremists who have voiced support for Hitler’s Waffen SS and made disparaging remarks about homosexuals and President Obama? And why would he now make the kind of comments which he has made regarding Britain's ability to repay her national debt?

I just don't get this guy. He's had great success, based on nothing more than the fact that he isn't Gordon Brown, and yet he just keeps pushing it.

Dr Phyllis Starkey, the Labour MP for Milton Keynes South West, said: "David Cameron seems increasingly keen to associate himself with people who have eccentric views. First he invited Dan Hannan to give a keynote address at a party conference, now he sits on stage with his latest guru who tells us manmade climate change is a myth and glorifies in recessions."

Cameron could still blow this. I know that the Tories are almost guaranteed to win the next election, but that's based on no-one actually knowing who Cameron is or what he stands for.

Every time he opens his mouth, or introduces us to his latest associate, his credibility is damaged further.

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