Reply to post: Re: Accumulated debt

NEVER MIND the B*LLOCKS Osbo peddles, deficits don't really matter

Doctor Syntax Silver badge

Re: Accumulated debt

And not just PFI.

There was the abolition of tax relief for pensions funds. No, dammit, let's call it a tax on pension funds - if the left can get away with calling reduced benefits a bedroom tax then we can certainly refer to a pension tax. That's left a pension deficit that big companies are going to be paying off for years to come and an end to final salary pensions for the foreseeable future.

Then there was all the personal debt encouraged by keeping interest rates artificially low (ignore a housing bubble so as to get a false measure of inflation). That left a whole lot of personal debt to be paid off at some time in the future - or written off if it couldn't be paid off. And when it couldn't be paid we had QE lowering interest rates well below inflation devaluing the savings of those who hadn't fallen for the original scam. Meanwhile the govt had spent the VAT & Stamp Duty collected from the spending that the debt had financed.

Gordon Brown's genius, if I can call it that, was to find hidden ways of making the future pay for his now. Tony Blair's genius, if I can call it that, was to step aside just as the first traces of that future were about to hit the fan.

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