Finally! Exposed! The Deficit Myth! So, David Cameron When Are You Going to Apologise?

This is an interesting read that exposes the lies relating to the U.K's deficit, which has been used by the Tory Government to win a General Election.

Below are the three deficit claims - the mess. The evidence comes from the IMF, OECD, OBR, HM Treasury, ONS and even George Osborne. The claims put into context are:

Here are the BIG 3 claims that the Tories sold the electorate and fooled many into believing it is the truth.

CLAIM 1 The last government left the biggest debt in the developed world. After continuously stating the UK had the biggest debt in the world George Osborne admits to the Treasury Select Committee that he did not know the UK had the lowest debt in the G7? Watch: Also, confirmed by the OECD Those who use cash terms (instead of percentages) do so to scare, mislead and give half the story. Its common sense, in cash terms a millionaire's debt would be greater than most people. Therefore, the UK would have a higher debt and deficit than most countries because, we are the sixth largest economy. Hence, its laughable to compare UK's debt and deficit with Tuvalu's who only have a GDP/Income of £24 million whilst, the UK's income is £1.7 Trillion. Finally, Labour in 1997 inherited a debt of 42% of GDP. By the start of the global banking crises 2008 the debt had fallen to 35% - a near 22% reduction page 6 ONS Surprisingly, a debt of 42% was not seen as a major problem and yet at 35% the sky was falling down?

So, cash terms instead of percentages scare people. Of course it does, especially where the economy is concerned, simply because the figures used are so large, everyday folk cannot get their heads around it.

CLAIM 2 Labour created the biggest deficit in the developed world by overspending. Firstly, the much banded about 2010 deficit of over 11% is false. This is the PSNB (total borrowings) and not the actual budget deficit which was -7.7% - OBR Economic and Fiscal Outlook March 2012 page 19 table 1.2 Secondly, in 1997 Labour inherited a deficit of 3.9% of GDP (not a balanced budget ) and by 2008 it had fallen to 2.1% - a reduction of a near 50% - Impressive! Hence, it's implausible and ludicrous to claim there was overspending. The deficit was then exacerbated by the global banking crises after 2008. See HM Treasury. Note, the 1994 deficit of near 8% haaaaaah! Thirdly, the IMF have also concluded the same. They reveal the UK experienced an increase in the deficit as result of a large loss in output/GDP caused by the global banking crisis and not even as result of the bank bailouts, fiscal stimulus and bringing forward of capital spending. It's basic economics: when output falls the deficit increases. Finally, the large loss in output occurred because the UK like the US have the biggest financial centres and as this was a global banking crises we suffered the most. Hence, the UK had the 2nd highest deficit in the G7 (Not The World) after the US and not as a result of overspending prior to and after 2008- as the IMF concur.

So Labour did not spend more than they created, they actually reduced the deficit they inherited, from a Tory Government who were in power for 18 years. The slow down caused by the banks, actually created the increase in the deficit, even the bailouts didn't effect the deficit.

Our borrowing costs are low because the markets have confidence in George Osborne's austerity plan and without it the UK will end up like Greece. Yes, the markets have confidence in our austerity plan and that's why PIMCO the worlds largest bond holder have been warning against buying UK debt. The real reason why our borrowing costs have fallen and remained low since 2008 is because, savings have increased. As a result, the demand and price for bonds have increased and as there is inverse relationship between the price of bonds and its yield (interest rate) the rates have fallen. Also, the markets expect the economy to remain stagnate. Which means the price for bonds will remain high and hence, our borrowing costs will also remain low. Secondly, the UK is considered a safe heaven because, investors are reassured the Bank of England will buy up bonds in an event of any sell off - which increases the price of bonds and reduces the effective rate. Note, how rates fell across the EU recently when the ECB announced its bond buying program. Thirdly, because, we are not in the Euro we can devalue our currency to increase exports. Moreover, UK bonds are attractive because, we haven't defaulted on its debt for over 300 years. David Cameron would like people to believe the markets lend in the same way as retail banks lend to you and I. Overall, when the facts and figures are put into context these juvenile deficit narratives and sound bites ("mere words and no evidence") simply fail to stand up to the actual facts. The deficit myth is the grosses lie ever enforced upon the people and it has been sold by exploiting people's economic illiteracy. So, David Cameron when are you going to apologise?

So confidence is strong because people have decided to start saving their money and not spend it recklessly.

Will the Tory supporters on here please answer honestly and tell us if they actually did any research for themselves or did they simply believe the spin and rhetoric coming out of the mouths of lying CONservatives?

As for the autor asking for an apology from Cameron, who is he kidding? He's off in five years time.

Link - www.huffingtonpost.co.uk...

It makes me frustrated, people who paid attention during the Scottish referendum, I mean everyone, knew the tories made promises they couldn't possibly keep in order to get votes.

Words are cheap and just think, if the tories hadn't lied, would the outcome of the vote been different? I say so

I still don't get how 40 percent (roughly) of the U.K. voted for them.

Because they decided to run a negative campaign by lying about the economic situation they inherited from Labour in 2010 and then personally attacking Ed Milliband. Of course they had the support of most of the MSM and regardless of what we think, sheeple are sheeple.

I and many friends voted for them,take a look at the BBC voting map and you see England is nearly all conservative now conservatives are an English party and if you remove the welsh and Scottish vote labour would never ever have a chance

Guys your beloved ex leader Milliband stabbed his own brother in the back and took his job!

Why would anyone vote for someone like that?

originally posted by: Whereismypassword
Guys your beloved ex leader Milliband stabbed his own brother in the back and took his job!

Why would anyone vote for someone like that?

This right here.

Sheeple, spouting verbatim what the CONservatives were spouting.

originally posted by: Whereismypassword
I and many friends voted for them,take a look at the BBC voting map and you see England is nearly all conservative now

conservatives are an English party and if you remove the welsh and Scottish vote labour would never ever have a chance

The Tories will rip themselves apart over Europe in the next 12 Months. And with Osborne being responsible for the re-negotiations, ha ha a Bilderberger through and through.

So there is nothing wrong in back stabbing your brother for a job then?

I am right am I not that he took his job when the trade union decided that wasn't the brother they wanted

a reply to: Whereismypassword

England is nearly all conservative now conservatives are an English party and if you remove the welsh and Scottish vote labour would never ever have a chanc

13% voted UKIP and they get 1 seat about of a third of the Tory vote
The Tory vote is 40% and they get 331 seats,that looks like the biggest screwjob in history.
UKIP got more percentages of votes than SNP and Lib Dems combined yet SNP gets 56 seat and Lib Dems 8 seats.
Madness.............

All the MPs were voted localy and if they won they have the right to represent their constituency in government

If you don't win doesn't matter how many votes you have overall

The voters chose who they wanted and the majority got their people they wanted

a reply to: Whereismypassword

I know how it works but it means 13% of the population have no say on national and international politics.
On the other hand, i'd rather the Tories got in over Labour.

I'm sorry the liberals lost so many MPs,I would have preferred labour to have been trimmed down more

Yeah it's tough when your local MP doesn't get in,and your right it doesn't seem fair

But as I mentioned every person who voted for their local MP who won should be happy,there has to be losers

What other way is there? At least the local people get who they want

If we assigned MPs into parliament not on winning but by their party percentage in the election surely that could be some people being very upset that a minority party in their region get their voice

a reply to: Cobaltic1978

SNAP!! I was just compiling some numbers to answer back Stumson on another thread with his ridiculous "debt is falling" myth when I read this. Here's the numbers I had quickly collected :

(was going to post on a.n.other thread)
Debt under thatcher-major sat at 50% and was 47% when labour took over

Debt fell under blair-brown labour to 30% and rose slighlty to 35% by 2007. After the banking crisis it rocketed to 60%.

The tories took over and the debt continued to increase until it flatlined at 70% of GDP.

Apparently this "flatlining" is a sign of recovery that we don't want to reverse cough choke splutter.

Apparently reducing debt from 50% to 35% is a sign of pre crisis over spend by labour!!!!!!!!!!!! What utter BS.

Labour lost the election because it failed to counter the downright lies told by the Tories over the past 5 years. The Tories told downright lies about the influence the SNP could have over Labour but for some obscure reason Miliband became defensive....IDIOT!!!

My numbers match. What an enormous coincidence OR.......THEY ARE THE FRICKING TRUTH that the lunatic Tory voters just plain don't understand.

a reply to: yorkshirelad

It's just plain bull shine, but as we have seen, even on this thread, it appears that Tories would rather behave in childish antics as opposed to telling the people the actual truth.

P.S - not all Tory supporters as the author is a Tory supporter. But it has taken him until after the election to write the blog.

originally posted by: Whereismypassword


So there is nothing wrong in back stabbing your brother for a job then?

I am right am I not that he took his job when the trade union decided that wasn't the brother they wanted

I see nothing wrong with standing for the same post as your brother and I don't think he stabbed him in the back either. It's what publications like The Daily Mail, Telegraph, Times, The Sun and other MSM outlets that support the Tories. The very same people who stand to benefit off them whilst they are in Government.

I am not a Labour supporter by the way.

Great info OP.
Like I implied in another thread
'stupid=Tory voter'
One poster here totally ignored your facts & figures & started ranting about....
not worth it really.
Thank you for supplying this valid information.
I'm just waiting for the bash huff post brigade.

a reply to: supamoto

They will be bashing a Tory voter.

I notice a few members have stayed away from this thread. Actual facts cannot be contested I guess?

Nevermind my previous comment, I can't be bothered.

Save and Flag for this thread. Hopefully some naive tory voters can get to grips with what we're dealing with here.