The debt and borrowing forecasts in the economy are appalling. The announced borrowing of approxiimately $750 billion over five years is already astonishing, but it is predicated on ludicrously inflated economic growth rates.
Nobody outside New Labour believes in the economic growth projections of 1.25% in 2010 and 3.5% in 2011. So in fact the real borrowing figure is likely to be over 1 trillion dollars.
I am poor and I don’t worry too much about money. But if you have any savings, in sterling or invested in something sterling denominated, get out now and get it into euros. The pound is going to fall spectacularly over the next eighteen months.
Just two other points then I’ll forget the budget. For Darling to pretend that 2.5% is a real terms increase for pensioners is a plain lie. Few pensioners pay mortgages, so the large majority do not benefit from the fall in the RPI due to mortgage payment reductions. Food and energy costs feature disproportionately in their budgets, and real inflation for pensioners is well over 2.5%.
The small increase in income tax for the rich is long overdue, but the bastards nearly all have accountants who will help them avoid it.
Nick Clegg is making a very good speech indeed, but nobody is listening. I will post it tomorrow.