osbfingerptWhat Osborne didn’t tell you before the Election, No. 71

And when he said up he meant down

but it didn’t mean a thing

and now he’ll take the finger

and then ram it up your ring

Big hat-tip to Slogger Clive for spotting this fascinating article using McKinsey data on the absolutely fantastic and unblemished outlook for the UK. The piece is chock-full of eye-rolling charts, but this one below in particular caught Clive’s eye. So let’s just give Draper Osborne a poke in his somewhat jaundiced eye with it:

debtstopchartWhat it shows is the level of growth required by indebted countries to start deleveraging Sovereign debt.

The United Kingdom is now second only to Spain in the acceleration of growth it needs to reduce the National Debt.

In better shape than us by miles are the likes of Greece, Japan, Italy and Belgium. Ireland stands out as a brave country that has put itself into a realistic position…by simply flat growth being enough to keep things under control. And bear in mind, Ireland, Spain and Greece have had the Troika’s “help” in order to plumb the depths of depraved red numbers. We did it all on our own.

But also in France – acceleration aside – the sheer size of its debt requires a 167% acceleration in growth to reduce it. And at the moment, France is flatlining.

And as I am now a Brit resident in France – yes folks, as of yesterday with my own personal unique and superbly honed Social Security Number – I have but two points to make:

1. The eurozone in general – and its 2nd and 3rd economies in particular – need to emerge from a quicksand of debt with dramatic growth….of which there are no signs above or below the horizon.


2. The United Kingdom needs a massive acceleration of growth to start repaying its obscene level of National Debt….in the context of reduced consumer spending power, the near-death of its main trading partner, and a global economy beyond that EU which is inexorably spiralling into a slowdown.


You think this to be rhetoric? Read on. In November 2014, UK Chancellor George Osborne brought to bear the most mendaciously bare-faced stunt in British fiscal history to distract from Britain’s ever-more engorged Sovereign debt: he told the House of Commons that Britain had “paid off its First World War debt”. This was a lie: he had merely found somebody to sell it to. That well known Hard-Left Labour website Forbes felt obliged to point out how ‘ridiculous’ the claim was.

In March 2015 he topped even that, emitting the following series of untruths extracted without bias from the transcript of his Budget Speech on that day (my emphases):

“Britain is walking tall again…..We’ll have paid off the debts incurred in the South Sea Bubble, the First World War, the debt issued by Henry Pelham, George Goschen and William Gladstone….I now turn to the national debt….today, the central judgement of this Budget is this: we will use the resources from the bank sales and the lower interest payments and the lower welfare bills to pay down the national debt…..higher national debt leaves our nation exposed, harms potential growth and costs taxpayers billions of pounds in debt interest…..Five years ago, national debt was soaring…Out of the red and into the black – Britain is back paying its way in the world….”

These are the facts: the falsehoods that render George Osborne a depraved liar:

We have not paid down any debt. It is ‘soaring’ today more than it was when the Conservative Coalition came to power. Britain is deeper in the red by £600bn than it was in 2010, and its longer term liabilities have doubled. Britain is not paying its way in the World: Britain is the second most badly placed nation after Spain in terms of the economics required to pay back it’s debt.

The Chancellor talked of £50bn here and £90bn there being saved: but most voters are unable to grasp the difference between ongoing deficit and long-term debt, let alone that between billions and trillions.

These are the facts:

A trillion is A THOUSAND TIMES BIGGER THAN A BILLION. Austerity savings that now stand at £73 bn over five years are 3.2% of the National Debt.

But the National debt has increased by nearly 42% in the last five years.

So Osborne’s policy is fourteen times smaller than the savings required to keep the National Debt static.

We do not need a savings piss in the Channel here, we need solid EXPORT growth to massive new markets in Asia and beyond. But the Conservatives don’t know how to achieve that. So what they’ve done is persuade the average voter that 1000 = 1.

That really is a lie of Goebbels proportions: but it won the Tories the Election….over a Labour Opposition that lacked the commercial perspective to even challenge it.

In the UK, in the US, in China and in the EU, the truth will out.

And when it does, I increasingly feel that Western governments will have to indulge in massive censorship in order to slow down that emission of truth.

In the meantime, I leave you this morning with the link below to a piece I penned over a year ago.

I respectfully suggest that it is highly relevant to our current cultural, economic and constitutional mess.

Related at The Slog: Is George Osborne fit to be in Government?


  1. Sadly the central truth can never be escaped. By building a huge tower of hypothecated and illusory ‘wealth’ based on imaginary tickets and sophistry pre-2008 the financial industry dwarfed the size of the productive real world economy of crops, products and machinery.

    When the media hammer on about this or that metric still being 5% short of its 2008 high why are we surprised? – the banking industry is deleveraging as fast as they dare and therefore by contracting the funny money balloon there is little doubt that certain elements of the productive economy will shrink also.

    JW is right, there needs to be a return to manufacturing but this will only be of use if the value of productive output is protected by forcing the banking system to stop undermining production by printing money left right and centre.

    If you make a living by making widgets, how can you price your goods if the currency you use is manipulated beneath you at will by people driven by ideology.

    Liked by 1 person

  2. Shame that the limits to growth are appearing at an ever increasing rate. It is hard to manufacture more when the resources you need are depleting ever faster.
    If only we could find another Earth (or two) then all our problems would be solved. For a couple of generations at least…exponential growth will see to that.
    But for now, ever increasing numbers of humans are squabbling over a shrinking pie.
    The Long Descent has started – hold tight, it’ll be a bumpy, long ride to the bottom…


  3. Stupid question-what about the countries that owe us money? Couldn’t some deal be done to swap debts? Apologies ,not my field


  4. I don’t know what to say. ..I am gobsmacked…we in Ireland are hand in hand with Germany ….a term I don’t use very often is F.F.S but I feel it is warranted here…


  5. IP +1 few seem to understand what money printing does to values & i repeat the difference between true value & it’s actual price is the damage it does to the economy & changing that value by the second only creates more damage,everything needs re-evaluating


  6. It starts with a little lie then, if you get away with that, a bit bigger lie then, if you get away with that one, a bit bigger lie and so on and so on until everything is a lie because, that’s all there left to tell, and one little tiny incident of the truth coming out will destroy all the previous lies.
    So, how far along this chain of events does anybody think we are then?

    Liked by 1 person

  7. If we examine the imposition by stealth of measures designed to corral people into the bank/fiat/reserve monetary dystopia then I would say that we are closer to the end than the beginning. The war on cash is starting in earnest with now many senior figures demanding an end to cash transactions completely – why this is not front page news is beyond me. Basic freedoms are being eroded at an ever faster pace to channel the productive output of people into supporting the crumbling debt based system which is consuming itself.

    If the system was healthy and serving people instead of enslaving them there would be no need for all this subterfuge would there??

    Liked by 1 person

  8. ‘If the system was healthy and serving people instead of enslaving them there would be no need for all this subterfuge would there??’
    The simple answer is no. There wouldn’t be any need at all.


  9. A naive question I know, but who benefits most from racking up larger and larger sovereign debt, and where is this money going if a policy of austerity is cutting public provision? It is clearly not going to keep Trident serviceable.


  10. What about MMT? MMT says public debt doesn’t really matter in our 100% fiat world. I used to laugh at that idea until I heard the argument. So long as the debt is spent on funding halfway productive work, it won’t cause inflation.


  11. It will soon be against the law to question the lies. Cameron has more or less said so himself! “In the past we said if you obey the law we will leave you alone, but that now is not enough” Prepare to be rounded up as the sheeple go tut tut!


  12. Well finally. Someone has realised that the Tories spoke the same rubbish that New Democracy party did in Greece, slavish followers of the EU’s Troika / IMF.

    The national debt has risen because of welfare reform, which has cost more admin and saved nothing. Starvation it caused put more cost on the NHS by malnutriton hospital admissions and the great increase in Rickets, a hunger sympton in kids that threaten heart health and bone development.

    And that was with 40 per cent of the austerity cuts the Tories wanted to do.

    60 per cent will come now.


    So being half Greek and a SYRIZA fan, I wrote up a new party, the Swans new party.

    So what you might say, now the Tories will be in government forever as all the mass media only speak in right wing ways, you might say?

    Labour is so Tory it has lost its reason to exist. And anyway will never get the 323-326 MP minimum threshold to rule London’s UK parliament again.

    There is a movement in the north of England to either become part of Scotland or to leave London rule and become a separate nation. But it stops just about Manchester.

    What about the Midlands? Equally as working class a region.

    Now this seceded new nation of northern England is a Labour idea, as otherwise they will never rule anywhere again.

    But it is Labour voters who vote the least and who do not bother to keep registered to vote.

    The Swans new party are the party that could pay off debt, increase growth and be compassionate, Feed All, House All.


    Shut down all the benefits admin altogether, work programmes, workfare, Jobcentres, the whole kit and caboodle.

    Those hundreds of billions of wasted taxpayers money converted into money in people’s hands, without all the admin costs.

    By replacing all conditional benefits, with all its admin and staffing with:

    automatic and universal
    to a level at least to what it should be under the EU Social Contract.

    to men and women at 60
    to at least the full SERPs pension of £276.10
    for current and new pensioners
    same for all
    irregardless of National Insurance history.


    End of National Insurance, so giving people an instant 10.4 or 12 per cent wage rise.
    And with no employer NI contribution, helps boss pays you the Living Wage.


    With money in peoples’ purses and wallets, you get this:

    More money in the economy, generating business, creating jobs.

    As 75 per cent of all tax comes from stealth taxes and VAT, this means this is funding neutral in this round robin of money, as we are all 100 per cent taxpayers.

    Because working tax credits and housing benefit (90 per cent going to people in work) are a benefit scrounging BOSS, not the low waged worker or the unemployed on workfare.

    As one celebrity once said.
    Money is manure. It’s not worth anything until it’s spread around.

    Even some of the richest people on earth have realised that:


    Press the Red Button.


  13. Being a mere pleb peasant and old with it, once slight word of caution.

    Don’t talk up Britain’s debt. It will give the financial vultures the red light to swoop from on high and wipe us out just as the EU has done in southern and eastern Europe.

    Just because Labour could only talk Tory as fighting for Tory voters alongside the Tories, does not mean we have to fall into the trap of saying the inescapable truth.

    Welfare reform CAUSES national debt from its costs of massively increased admin and the knock on effect to the NHS by increased starvation causing illness, hypothermia in the old, and increased mental health problems.

    We know the Tories are purely feudal and cannot comprehend the basics of commerce (an old O Level would do that for them).

    The funniest sight I saw was Osborne trying to tell a Professor of Economics – Varoufakis – SYRIZA’s Finance Minister – about economics.

    Then in parliament could do the mental arithmetic of 7 x 8.

    Nice to see that us plebs who did not learn English grammar nor arithmetic in school, did not do any worse than those whose parents paid huge sums for private schools education.

    So be cautious in the truth. It is a two edged sword :-(


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s