QE2 and deleveraging Watch
I myself would be too worried about perverse incentives, so I wouldn't go so far, and I certainly don't agree with writing down mortgage debt right now (maybe in a double-dip) but using it to bring down interest rates seems fine by me.
Especially publicly owned ones which would face a multi billion write down
All of them centre around the idea of getting the economy going. NO. We need to let the economy recover. If I hear another politician/academic talk about how to
KICK START THE ECONOMY
I am going to throw something at them.
The economy is not a car.
But doesn't Osborne's whole growth strategy (as much as you can call it that) rely on the public taking on ever-increasing amounts of debt?
What the OBR has now told them is that as part of their strategy for reducing government debt, we will see a huge increase in household debt - of course this may be easier to sell later on as they can attack households for 'reckless borrowing'.
But have no doubt about this - Britain's households will be far more indebted after 5 years of Tory government than they were under the Labour government, and Osborne knows this, which is why they have stopped criticising Labour for it.
- Political Ambassador