The Video Ref wrote:
Anti-austerity was always a hopeless doctrine.
The idea you can spend your way out of major debt it, quite frankly, ridiculous.
It's a bit like defaulting on a loan and then asking your bank to give you another £5,000.
The argument for austerity doesn't make sense in a fragile economy, with huge private debt.
If both the public sector, and the private sector are both paying down debt at the same time, then banks stop lending money, and, money stops circulating into the economy causing it to shrink - which is what's happened in Greece.
In the UK, we've just been lucky so far that we've been able to print currency to keep ourselves afloat. In reality, as soon as interest rates rise and, demand for oil catches up with the current over supply and oil prices start to rise again, and the grave reality of our economic situation will hit home and, we'll probably be in a worse position than the Greeks.
Currently our debt is 80% of GDP, when you factor in all the private debt its 900%. This won't be repaid, either the bubble bursts, and our living standards plummet, or we write off a huge amount of private debt, and break up the too big to exist banking system and restore some balance and reality to our economy.