The Organisation for Economic Co-operation and Development says that the UK national deficit will increase, and in 2010 rice up to 14 %, (highest in the western world).
Mr. Ferguson argues this with that the interest rates on government bonds to rise, that will make a inflation. The people who have pensions and saving will lose a lot here.
The author says that he does not believe that Growen Brown will survive the next election, and are saying that «the new government will have to show how it proposes to stabilise British public finances before we face a major crisis of confidence in our institutions and our currency.»
I agree with Mr. Ferguson that the government has made many mistakes before the crise. The british economy,
is sustainable by consumer spending, driven by record levels of personal debt that is secured, (most of it) against house prices that the Bank of England calls well above equilibrium in the market. However, the financial minister of the UK, Brown, gave no answer, and said only that there was no solution to this.
On the other hand, no government has made it perfectly and it is not easy to sit in government in such a period, because they do not know how to handle all the problems that comes up, and the time is running so fast.
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