It is Obvious

Chris Rick has got altogether too much to say

A leopard never changes its stripes

Posted by chrisrick13 on March 16, 2016

It is obvious: I can spot a Labour financial ‘expert’ at a 1000 paces

Did you hear the Labour party with its announcement about managing the economy?  They are going to do it in a financially responsible way in future.  So they were weren’t before ?

The words of a Labour councillor, when asked what they should do in the hard economic environment we are in today, still bounce around my mind.  She said that they should go out and borrow as much money as they could and spend it as it was so cheap at the moment.  Missing two points.  What happens when it gets expensive?  Who is going to pay it back?

But Labour said that they will not borrow money to spend.  They even avoided the ‘I’ word.  They did not say that they would only borrow to invest.  If they are not aware, whatever you borrow you still have to pay it back.  The lender does not care what you spend it on.  Investing in infrastructure is not investing.  It is spending.  When you invest you expect a financial return.

So that is an astonishing step for Labour.  They are not going to borrow.  Then they spoilt it by adding ‘in normal times’.  Normal time is when interest rates are 4% or higher.  A 1% interest rate rise will finish off the UK and we will be in anything but normal times.  The chances of a voluntary increase to 4% because the economy is booming and needs stabilising are just about zero.  So Labour won’t borrow in maybe 20 years time when things are ‘normal’.  It got one day of headlines before analysts picked it apart and it was forgotten.  Did they expect it to last until the budget and steal the Chancellor’s headlines with the budget.  Did they expect it to last in your mind?  Did it go down well with people who have and will always vote Labour?

Same old same old.

It is obvious: I can spot a Labour financial ‘expert’ at a 1000 paces – looks just the same as a Conservative one.

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