Borrowing, you pay

If you borrow something from somebody at some point you are going to have to give it back. If it is a book, you read it you take it back. When you borrow £11.4 billion again you need to pay it back. Read the extract below taken from today’s Times
“Pressure for tax rises and public spending cuts has intensified as it was disclosed that the Government was forced to borrow an extra £11.4 billion to pay its bills last month, the worst October figure since records began.
Tax receipts collapsed by £4.1 billion, compared with October last year, while spending was £4.5 billion greater as the recession depressed normal sources of tax, such as corporate profits and consumer spending, and as welfare payments surged. Total public sector net debt grew to £829.7 billion by October 31, equivalent to 59.2 per cent of total national output, the highest level since 1946. That compares with £695.1 billion and 48.6 per cent a year earlier.
The extra borrowing was almost double City expectations and led to fresh doubts that Alistair Darling, the Chancellor, could keep total borrowing this fiscal year to his target of £175 billion. Economists predict a total borrowing figure for the year of up to £220 billion.
The dismal snapshot of the public finances came as the Organisation for Economic Co-operation and Development (OECD) urged the Government to come up with a credible plan for cutting the massive public debt, and cut its growth forecast for the UK economy.
It said: “The consolidation announced by the Government means that fiscal policy will be a drag on the economy from 2010 onwards. Once recovery takes hold, further consolidation is imperative as public debt, which was relatively modest before the crisis, is reaching very high levels””
So what is my point?
The above data is horrendous, my point is that to balance the books there will be in the not to distant future:
(Note here: The only reason we have not done this yet is there is a small matter of an election coming up next year and Labour wants to carry on with their fantasy economics until May).
· Massive spending cuts, with consequential massive job losses
· Wage freezes
· Tax rises
· Disposable income will be erroded
Unemployment will go above 3 million next year.
Even if the economy picks up it is going to take a decade to sort out this mess, this is the reality.
Is your job safe? Is your pension safe?
People now unlike never before need to take control of their lives. Its your life, take responsibility. Guys, you need to extricate yourself from the Matrix.