Britain to emulate Canada's radical solution to tackle debt

[soloman]

George Osborne is planning to eradicate Britain's budget deficit by emulating Canada, where borrowing was brought under control within just three years by spending cuts of 20 per cent.

Read more here:-

Britain to emulate Canada's radical solution to tackle debt - Telegraph

Thank goodness some positive action is about to be taken.

[Midas]

George Osborne is planning to eradicate Britain's budget deficit by emulating Canada, where borrowing was brought under control within just three years by spending cuts of 20 per cent.

Read more here:-

Britain to emulate Canada's radical solution to tackle debt - Telegraph

Thank goodness some positive action is about to be taken.

Good for him, even though it'll mean a period of hardship for many.

The potential problem is that a great many people simply won't link a time of austerity under this government to the profligacy of the Labour government, despite them being told it time and time again, and the Tories and LibDems will get all the blame. Fingers very much crossed that if this way of tackling the problem is adopted, the end justifies the means.

[manrow]

Good for him, even though it'll mean a period of hardship for many.

The potential problem is that a great many people simply won't link a time of austerity under this government to the profligacy of the Labour government, despite them being told it time and time again, and the Tories and LibDems will get all the blame. Fingers very much crossed that if this way of tackling the problem is adopted, the end justifies the means.

I share that sentiment Midas. However the problem has been that Nero and watched fire come to mind in terms of inaction by governments not only in Europe but around the world. Noice how the moment that our coalition government moved to cut spending that other Euro governments jumped in too!

[Streetwalker]

The Canadian model was built on vast natural resourses and a population with National pride

Im afraid we have niether present in the UK.

[Barry]

There is great confidence in Sterling because of the will to commit to these cuts.
In the eurozone I am 10% better off already.

However I live near an unfinished motorway where work has now stopped and next to a high speed train link, which has been put back to 2016.

Unemployment is huge in Europe and the Euro is very much under pressure.

Cutting benefits in the UK will be *interesting*.

[Major Sinic]

There is great confidence in Sterling because of the will to commit to these cuts.
In the eurozone I am 10% better off already.

However I live near an unfinished motorway where work has now stopped and next to a high speed train link, which has been put back to 2016.

Unemployment is huge in Europe and the Euro is very much under pressure.

Cutting benefits in the UK will be *interesting*.

In income/UK investment returns maybe so. But if you own property in Europe, and value your assets in pounds sterling then you are taking a hit right now. I have property in the French Alps and Portugal and values have dropped like a stone in sterling terms. Admittedly it is a paper loss since I have no intention of selling in the forseeable future, but disquieting nonetheless.

[soloman]

In income/UK investment returns maybe so. But if you own property in Europe, and value your assets in pounds sterling then you are taking a hit right now. I have property in the French Alps and Portugal and values have dropped like a stone in sterling terms. Admittedly it is a paper loss since I have no intention of selling in the forseeable future, but disquieting nonetheless.

You make a good point about paper losses, as presumably you could replace what you own abroad with identical at similar prices. Since we are all so hooked up on numbers any reduction in capital value hurts!

On a similar vein, I note the strikes in Spain today by workers angered at the cuts; do they really think that this will have any beneficial effect? Somewhat similar to the BA position maybe?