Gordon is Lying

Paul Staines says that British Chancellor Bordon Brown is, to put it bluntly, full of crap

I try not to bore Samizdata readers with shop talk, but the markets are saying that Gordon Brown is a liar, all the research I get (for what it’s worth) is saying blatantly that Mr Brown’s underwear is warm. “Liar, liar knickers on fire” goes the old English schoolground skipping rhyme. Typically:

“Sterling had a weak start in NY trading on a combination of overall dollar buying and the IMF report just released on the UK, expressing the Fund’s cool reception to last week’s pre-budget report on the grounds that it is “weaker than previous reports , causing it to affirm its 2.25-50% GDP forecast for 2003, which is below the government’s own forecast of 2.5-3.0%. The IMF criticized Chancellor Gordon Brown’s assumptions, which laid out the foundation of his revenue projections. The Fund noted an especially skeptical note on Brown’s decision to finance his revenue shortfall through borrowing.

UK November retail sales rose 2.0% year on year at their slowest pace in 2 years, following October’s 4.9% jump. The British Retail Consortium attributed the weak rise to unusually strong November sales last year, adding a hopeful note that that the poor figures may entice the BoE to cut rates. Unlike, the Fed, ECB and BoJ, the BoE has not eased its monetary policy, since last November.”

The British state is, pre-election cycle, going to raise government borrowing to finance a spending binge without raising taxes (too much for voters) and everyone knows Gordon is lying.

Paul Staines