Cameron tries to blame foreigners for UK ‘recovery’ fizzling out

It’s a bit rich for Cameron, in his statement toriseday from Brisbane, blaming the world out there, particularly the eurozone, for the fading UK recovery when those countries are pursuing almost exactly the same economic policies as he is.   That is relentless and unending austerity, which he conspicuously failed even to mention.   Now that the blip in UK economic growth between Q2 2013 and Q4 2014 is manifestly deflating (was this part of the long-term economic plan that Cameron-Osborne continually talk about?), the prime minister needs an alibi.   It’s easy to pick on the eurozone which has indeed only avoided falling back into recession because of a surge in the French government’s public spending (please note, Mr. Cameron), but the reason the eurozone is in such a bad way is that Merkel has enforced unrelenting fiscal austerity – exactly the Osborne programme.   That euro-austerity has crippled the euro southern periphery and has now undermined the German economy itself which depended on that same euro periphery for its export-led growth.

Ironically Cameron is now making the same complaint, that the fast-fading euro market is damaging the UK economy by undermining UK exports.   That is indeed beginning to happen, but he can hardly blame foreigners for pursuing identical policies to his own.   The origins of the rise in UK growth in early 2013 lay in flooding the economy with £375bn of quantitative easing (printing money) plus 5.5 years of ultra-loose monetary policies (with interest rates at 0.5% since mid-2009), plus also partly the enormous £23bn+ windfall for household incomes from banks’ payback of massive PPI mis-selling and other scams.   But once that had worked its way through, the recovery had no legs.   It was always lop-sided, with manufacturing and construction still well below pre-crash levels.   Moreover, the temporary rise produced in household borrowing has now dissipated, the private investment strike is still in force, net exports (i.e. exports minus imports) are a growing disaster area, and government expenditure is firmly pushing south ever deeper.   There are no other sources of demand to keep the recovery going.

The problem therefore is not the gathering global economic storm that Cameron seeks to portray, it’s here in the UK Treasury.   Austerity has now so far depressed UK incomes for the sixth year running that it’s squeezing the tax take (and therefore the government’s income) so that this year the budget deficit, still around £100bn instead of the £40bn that Osborne predicted in 2010, is set to rise this year and each future year as long as current policies are maintained.   Merkel is now suffering the blowback from her own hideously mistaken policies, and so is Cameron.   No amount of finger-pointing can deflect from the fact that the Western world, the eurozone and the UK will only escape stagnation when they abandon austerity.

13 thoughts on “Cameron tries to blame foreigners for UK ‘recovery’ fizzling out

  1. Yes!
    – and Ed Balls on the TV News tonight also reminded us that he’d previously blamed too much snow and the birth of the Royal baby!!

    I do hope that the electorate will wake up to how badly the Tories are really handling the economy.

  2. In my own view the so called, “recovery,” has never happened, although it’s worst effects have, so far, been somewhat mitigated and obscured by the fact that, (because of socialism,) our society is now better organized to cope with it than it was in 1929, but we are running out of money because of the balance of payments deficit; Blair’s profligacy, and various forms of corruption, (reducing tax revenues,) and antics of companies like G4S and co, toxic debt , (much of which could and should be written off and not sold on to hedge funds)and the historic cost of bailing out the banks and so on..

    What is missing is of course, demand.

    The last time we were in depression this deep it lasted from the wall steep crash, until Germany unilaterally abandoned austerity and rearmed; achieving full employment, (starting from an unemployment rate of about 6-7 million,) and a prosperity that was then the envy of most Europe.

    There are a number of tried and proven tactics other than those adopted by the German National Socialists that might be used to address and mitigate the situation, but it seems to suit too many people, who are still not directly or personally affected by the recession to use the recession further their own, (political,) agenda.

  3. Whot recovery there wasnt never one the only profits being made by companies are those chasing the tax payers monies yet they cut jobs to the bone pay is rubish and all profits taken offshore yes the tories have lied but then with another failed banksters in the bank of e George outside fiddling figures and best of all rtu ids taken people of benefits by any means death suicide starvation yes they made the garden smell rosie but the trouble is its all been lies yes we been sold down the river and wonder when those who aint rich wake up to the fact and do whot iceland did yet who ever gets in the monies owed now by this greedie lot has put chains around that government but then if they do a iceland and take back public utilities then jobs will come and that the young could look forward to work has a apprentice or such yet are labour going to do this jeff3

  4. WL:

    It’s interesting, (at least I find it so,) that I wrote my own comment above, (which touches on many of exactly the same problems discussed in your article,) before reading the link you posted; but am nontheless in almost complete agreement with the article’s author about many of those same issues.

    Personally I think we, the UK, urgently need to consider a contingency plan, “B,” in the event of things going as completely pear shaped as is being envisaged therein.

    In Greece, (much further down the line,) they currently estimate that every person in work is now supporting at least 9 other people and remember also what happened in Romania, (under Nicolae Ceaușescu,) when they made paying down foreign debt their overriding priority.

    I doubt anyone has forgoten the harrowing and sickening accounts of way that their country’s orphans, the otherwise disposed and their mentally ill were so horribly mistreated and abused in the name austerity.

  5. This from the Guardian, sums it up perfectly:

    Two Bald Men, Fighting Over a Comb

    Miliband and Balls.

  6. Bugger; the above should of course have read:

    “Two Bald Men, Fighting Over a Comb.”

    Cameron and Balls, (not Miliband and Balls, although either will do.)

  7. I saw the boy Osbourne being ‘interviewed’ ob the Beeb last night. He cautioned that borrowing to spend would put the UK right back where it started. I was hoping the follow up question would be ‘so how much have you borrowed Mr. Osbourne?’

  8. Please explain to me why there has not been a motion put forward for a vote of no confidence in this “Government”? Surely the performances of Cameron, Osborne and IDS, either collectively or individually, should have been enough. Why have they been allowed to ruin the country even though they have shown themselves to be the most corrupt government in British modern history?

  9. David Cameron is very good at convincing us – even if only for a short time (a few seconds) – that black is white and white is black.

    David Cameron blamed President Putin personally for shooting down Malaysian Airline MH17 – despite the fact that 30mm Calibre machine gun holes (lots of them) were seen on the Captains side of the cockpit. Machine gun holes with a very good grouping which would make the “Russian Separatives” the best shots in human history seeing as they don’t have any Aircraft and the plane was 10,000 metres up in the air (miles away). Fighter Jets were also seen in the area when the plane fell out of the Sky. A BUK Missile System was active in the Area but it was never proved that it was in the hands of the Eastern Ukrainians, it was in the control of the Kiev Government despite the fact that the Eastern Ukrainian Rebels DON’T HAVE ANY AIRCRAFT!!!!

    I would disagree with Michael Meacher when he implies that he just likes blaming people. He was very tolerant of the mess Vince Cables made of the Royal Mail ‘bargain basement’ sell off to their Tory Investment Firm chums, when Vince basically lost ONE BILLION POUNDS, and David Cameron didn’t criticise him for this. David Cameron did not blame Vince Cable for wasting ONE BILLION POUNDS of the public’s investment and did not criticise the obvious vested interest shown by Vince Cable’s undervaluing the Royal Mail inorder to carry favour with the Tory Party’s campaign contributors in the rat infested criminal syndicates of the City of London.

    It just goes to prove that David Cameron can show restraint and does not blame everybody, even if a particular colleague of his has shown almost criminal negligence at wasting the public’s money.
    Vince Cable must be very grateful to his friend David Cameron.

  10. Accoridng to the Daily Mail, our Leader, David Cameron said: “‘I’m not a forecaster of house prices but I do know this: The choice at this by-election is between whether to vote for Kelly Tolhurst – a strong, local candidate who backs our economic plan – or to vote Ukip, where you’ve got instability, insecurity and the danger of Ed Miliband being a step nearer Downing Street.'”

    David Cameron said: “I’m not a forecaster of house prices” – No!!! really? you could have fooled us. Despite admitting that he can’t forecast House Prices he let his public school servant or “Fag” George Osborne launch the “Help to Buy” scheme (kown more accurately by Steve Keen as “Help to Sell”). If they can’t predict house prices and they’ve no idea about what affects house Prices – why did they create so drastic a measure to affect house Prices?

    Who the hell is Kelly Tolhurst – one good reason NOT to vote for her is that she backs the Tory government’s Economic Plan which reeks of ignorance about how the financial system works. Douglas Carswell MP (UKIP) has already demonstrated that he has a much clearer understanding of how the economy works than David Cameron and whoever Kelly Trollhurst is, which is a reason NOT to vote Tory.

    Tory Policies:
    1. Destroy Libya – succeeded
    2. Increase house prices – succeeded (pricing people out of the market)
    3. Rip off students by trebling tuition fees
    4. Start Privatising the NHS – 2012 Social Care Act.
    5. Do nothing to make the Banking System more stable and keep buying toxic investment excrement from the City of London and sending the UK public the bill.
    6. Destroy Syria – failed becasue Russia didn’t want another Libya.
    7. Destroy Iran – failed becasue Russia didn’t want another Libya.
    8. Create a new Cold War with Russia to punish them for not playing ball with Syria and Iran policies.
    9. Unexpected Tory achievements – Destruction of Ukraine, downing of MH17, Expansion of NATO and the creation of a whole new Terror Organisation that is as big a State and controls several Oil Fields.
    10. Destruction of the Justice System and Privatisation of Prisons creating despair and hopelessness by prinsoners and prison guards alike.

    Teflon Tony has now morphed into Teflon Dave – no matter what disasters his incompetent colleagues create, Teflon Dave get’s wheeled out in front of the Mainstream Media in his greased down hair and sharp blue suit and trys to convince us that the Deficit and National Debt are reducing – white is black, and black is white.

    Vote Tory in Rochester and you’ll get instability, insecurity and the danger of Teflon Dave being returned to Downing Street.

  11. David Cameron also said:
    “The danger is if you vote Ukip, the value of your house will go down.”

    David Cameron admitted that he’s NOT a forecaster but here he is stating that THE VALUE OF YOUR HOUSE WILL GO DOWN. what crystal ball did he see that in then?

    there’s several points to make about this new Cameron statement:
    1. It’s not the VALUE that will go down (if he’s right of course) it’s the PRICE in Pounds Sterling – FIAT Money. The house will still be as valuable unless it get’s struck by a tree and the roof falls off.

    2. If the PRICE does in fact go down – why is that bad? It means that some fat Tory won’t get the pleasure of seeing his children struggle to get on the Housing Market as prices may drop enough to allow people to buy affordable homes.

    3. David Cameron can’t forecast waht is going to happen with House Prices as if he could, it would mea that thye knoew “Help to Buy” and other debt inflating policies would done with the intention of making Houses more unaffordable.

    Vote Mark Wreckless just to annoy David Cameron – it’s worth it and he’s an MP with more Courage than the average spineless Tory MP. Anything to get that smnug expression off David Cameron’s face.

  12. France is supposed to be a “medium basket case” so where does that leave Britain? French goods export value is up 25% since 2009 bringing 640 billion Euros in income. Britain’s is up 14.7% (360 billion Euros). Our largest export sector is jewellery and precious metals and a large trade in oil (selling our reserves).Luckily Scotland voted no for devolution. This year France’s deficit is 4.4%, Britain’s 5.6%. French debt is 1.94 trillion Euros (88% of GDP),Britain’s 2.4 trillion Euros (90.6% GDP. Whitehall civil servant pensions and City bankers represent 63% of all UK debt liabilities.

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