I’m putting this on this blog because not many of you look at my economics blog and I want you to understand the dynamics of the public sector deficit crisis. This is from a US blog and shows Obama’s proposed long-term budget path. The US has more or less refused to come up with a credible fiscal consolidation plan. In contrast, the UK has a credible plan. It may not work, it may be blown off course but it least the UK government is serious. Despite the forest sell-off debacle, I’d rather have a government that recognises the problem and tries to rectify it, even if it makes some wrong decisions. For Obama, in the UK, read Ed Balls.
Source: Keith Hennessey