26 March 2009

Brown is defeated and will come home alone


With the cat is away the mice play.  The First Lord of the Treasury finds himself no longer in charge of his own economic policy.  Mervyn King and Alistair Darling have hijacked the show while Moses is on his pre-G20 jolly.  In addition, the markets have made it plain that the gilt sale failed yesterday due to the level of Government borrowing.

Brown waved the while flag that there would be no agreement on a further stimulus at the G20:

Nobody is suggesting that people come to the G20 meeting and put on the table the budget that they’re going to have for the next year. What we are suggesting is that we have together to look at what we have done so far . . . and then say, ‘What should happen next?

Every country will have its own timing for announcing its fiscal and monetary decisions. Nobody is trying to upset that timing.

In other words, Germany and France 5 Brown 0.  And there will no budget stimulus in extra time.

With some saying that the gilt sale failure ‘holes Brown below the waterline’, and the Czech Prime Minister, Mirek Topolánek, calling Obama’s fiscal stimulus package and financial bailout the ‘way to hell’, Brown looks very isolated.

There is more.  The US Treasury Secretary, Timothy Geithner said:

No crisis like this has a simple or single cause, but as a nation we borrowed too much and let our financial system take on irresponsible levels of risk.

In other words Brown and Greenspan got the financial model wrong and we are all paying the price.

Brown is now trapped by the manoeuvring of Darling and King and the markets giving a big ‘V’ sign to the bottomless pit of Government borrowing.  Brown has spent billions, pursued policies that he can’t sell to the world in the hope that it would revive his political fortunes.

The only positive sign of the past 48 hours is that the UK now has a succession plan for the future.  Prime Minister Cameron will be followed by Prime Minister Hannan.

Enoch Powell said all political careers end in failure.  Brown’s is going to end in humiliation.

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