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Interesting to read that Bank of England Governor Sir Mervyn King has cleared the way for the Chancellor to ditch one of his cast-iron fiscal rules and miss his target to get the national debt under control by 2016.

The Governor of the Bank of England suggested that it would acceptable for George Osborne to break his pledge on debt reduction due to the state of the world economy. “If it’s because the world economy is growing more slowly, then it would be acceptable,” he said. “It would not be acceptable to miss the debt target if there was no excuse for it.” The Governor’s comments followed Prime Minister David Cameron’s refusal in Parliament last week to recommit the Government to the debt goal, and comes amid mounting speculation that the target will be missed due to the slowdown in growth.

This is truly pathetic stuff. I remember meeting Mervyn King some years ago at an economics event and he seemed an owlish but intelligent cove. Clearly he also lacks common sense. UNLESS UK debt is reduced then there can be no growth. Our economy will languish in the fiscal doldrums. Osborne has been too timid, afraid to do what NEEDS to be done. King has failed to speak up over the utterly disastrous fiscal policies of the last Government and now this one. If ever there was a case for Regicide this is it…

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  1. ” .. and comes amid mounting speculation that the target will be missed due to the slowdown in growth.”

    It’ll be missed because the government’s spending too much. Wherever there are deficits and debts it is always because of that one simple reason. Anything else is a lie and a smokescreen.

    Breaking news for these chumps: China is slowing rapidly. 2013 is going to be a very tough year.

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