His tax increases and spending cuts are all scheduled for the FUTURE. What he's doing NOW is running huge deficit spending which props up the GDP figure, but does not create real genuine growth.
He cannot cut the spending because the GDP would drop sharply and that would be BAD just before an election.
Yet he can't fund it with borrowing, UK is already at the stage where nobody wants its debt and Bank of England is buying government debt by printing money.
He cannot fund it with taxes, because that would kill what little business the UK currently has.
So he needs to convince people that this is temporary, and that, yes, they will fix the deficit problem SOON, in the near term (2010/11) or he risks a run on the pound.
His numbers don't add up, and his actions don't even match THOSE fake numbers.
Myself I would like them to JUST CALL THE F***ING ELECTION and stop making decisions that have more to do with getting elected than fixing the economy.
As for patents, perhaps he imagines the next bubble as a patent bubble. Instead of the city buying and selling betting slips on mortgages, they'll buy and sell millions of overlapping claims to be an inventor of whatever passes for inventions these days.
Who knows, perhaps they'll create derivatives of these, leveraged up 38 to 1. Bets on whether the patent lawsuits will payout or be duds.
A nation of patent trolls and gamblers who bet on patent trolls.
A deeply unpleasant prison country , where people are treated like criminals, watched with CCTVs, monitored, receive secret background checks, the guards can search their cells at any time for any reason, background checks, and pat down searches in public, lock down at 11:30. An evil, sad, diseased, society.
CALL AN ELECTION!