Paul Wilmott, over at his blog, suggests that given the fiscal problems that face Her Majesty’s Government in the UK, HMG has only a few policy options:
- Raise taxes;
- Cut spending (difficult for a Labor government);
- Sell the family silver; or
- Inflate
Which do you think is the most politically painless?
Bloomberg also reports that the U.S. more than quadruples borrowing as tax revenue drops. How will they finance this debt? How will they crawl out of this debt hole?
If you didn’t see it already, read the Confessions of a TARP wife in order to keep an eye on how social attitudes change.
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