Britain to emulate Canada's radical solution to tackle debt

[fellowtraveller]

It's what the electorate clearly wanted. Everyone knew this months before the election

And it is undoubtedly the worst possible circumstance to getting anything done. A new majority govt would simply pound through essential reform without too much regard for their partners sensitivities, and with far less eye on what will happen at the next election. Isn't that why coalitions are promoted by some, they are renowned for compromise and cionsensus, little legislation and what is produced makes everybpody happy.

None of that is reuired today.

You've been reading too much of Simon Heffer's blather

Never heard of him. I go to the UK twice per year on business and have close family there. IMO, the economic situation and prospects are dire, worse than reported in MSM.

What better thing to do than to try to reach some sort of consensus?

Act, that would be much better. No need to form that blue ribbon panel of learned persons and labpour union reps, that is sure to produce swift and effective results. I expect you have a civil service background with that approach.

The UK has the distinct advantage the smaller political divisions have precisely the power Westminster gives them.

Wrong. The central govt in UK will not be able to pretend they are succeeding by dumping billions of p[ounds of 'savings' like Chretien did here in the 90s. No buffer. The political shitstorm will be immense, the papers there will be full of terrible stories about Aunt Tilly left to die in the gutter. Watch it happen. A coalition govt won't have the spine or political will to carry it through.

I would think the LibDems will be staying that hand any ways.

Scotland will be an acid test for this coalition, with their huge number of people on direct and indirect life support from London.

Does the coalition have the guts? I doubt it, it would be a first.

[ToadBrother]

Does the coalition have the guts? I doubt it, it would be a first.

I don't think they have a choice. It's been done in Ireland, which has a very severe program of deficit reduction. It's either that or have the Mediterranean flu overwhelm the UK. It's no different in Germany, where the coalition there is slashing mode.

You're under the assumption that these guys have some other path they can take. The UK is broke, or right next door to it. If they don't bring down the deficit, regardless of parties or combinations, this time next year it will be a disaster area not seen since the end of WWII.

[msj]

Paul Krugman sheds some non-partisan light on this issue.

Basically, it helps when your central bank has room to lower interest rates (UK is pressing the zero boundary right now) and your currency can devalue against your major trading partners (well, thankfully they stayed out of the Euro so they can try this to some extent).

[ToadBrother]

Paul Krugman sheds some non-partisan light on this issue.

Basically, it helps when your central bank has room to lower interest rates (UK is pressing the zero boundary right now) and your currency can devalue against your major trading partners (well, thankfully they stayed out of the Euro so they can try this to some extent).

I would imagine the Coalition would only devalue the pound if there were no other choice. It would send pretty substantial shockwaves throughout the Eurozone, and would make them no friends.

What we should do is invite Britain into NAFTA.