“Britain under its new leadership is going the austerity route. Chancellor Osborne set plans for 81 million pounds sterling of spending cuts, all in an effort to erase Britain’s deficit by 2015. Osborne’s plan will entail the loss of 500,000 jobs in Britain’s biggest austerity push since World War II. Osborrn will require larger pension contributions, and higher retirement age, Conservatives in Parliament cheered Osborn, crying “More, more” as the word of the new austerity program emerged. There was no sense of panic on the part of the British public, perhaps because Brits remember the austerity and pain they lived through during the dark and horrific days of World War II.
Ed Miliband, leader of the British Labour Party opposition, called the austerity plan “The biggest gamble in a generation. — a gamble with people’s jobs and livelihoods. No other leading economy is trying anything like it.”
Mr. Osborne may have the nation behind him now, but in a year with unemployment climbing and living standards falling, sentiments may be a lot different. Osborne claims that the drastic cuts have removed Britain from the “danger zone” that once occupied along side of Greece and Ireland. Osborne told the MPs, “It’s a hard road, but it leads to a better future. Today’s the day when Britain steps back from the brink.”
But it’s very different in Greece and France, neither country known for their work ethic. In both countries, riots have broken out over austerity plans. When the age of retirement was increased in France from 60 to 62, literally the whole nation went on strike. The French famously don’t like to work, they love their vacations and their short work-hour weeks.
With Britain setting the tone, it won’t be too long before the austerity route hits the US. The American folks at home never suffered terribly during WW II, nor have they suffered through Korea, Vietnam, Iraq or Afghanistan. This will change drastically in the years ahead as the full force of the deficits hits Americans since the year 1939, Americans have enjoyed one long party, due to inflation, over-spending, borrowing and leveraging. In my opinion, the party’s about over. And Britain is leading the way for the English-speaking nations.”
Richard Russell Note — I think Britain’s new austerity is going to rub off on the US. This could be one of the reasons why gold is correcting. Gold may be looking ahead to the time when the US will cut out all the QE and stimulus stuff and start facing the pain of its disastrous deficits. Hard to believe that the US could actually choose austerity, but I think Britain is leading the way.
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