Tory's finally spot the real economic crisis!
Even a modest dose of Keynesian spending – say increasing it by an additional 1% of GDP - means that in the end taxes will have to rise by the equivalent of almost 4p on income tax.
That’s not just a tax bombshell, it’s a cruise missile aimed at the heart of a recovery.
And in extremis, it can mean you lose the confidence of the international markets.
Gordon Brown doesn’t understand that there are limits to borrowing, even after he’s abandoned his fiscal rules.
They are not his limits.
Today everyone assumes the only question is ‘how much more does the British government want to borrow from the markets?’
Talk to former Chancellors and they will tell you that at some point the question becomes ‘how much more are the markets prepared to lend?’
That’s why there are limits to borrowing – not political limits, but actual limits.
Limits to what can be lent and limits to what a country can carry into recovery.Finally some words of sense from this woeful opposition!