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The Credit Cruncher was conceived to help you to keep up to date with credit crunch and recession developments, it provides some helpful credit crunch advice and it addresses personal debt. The Credit Cruncher also seeks to explain how the credit crunch started and shed some light on the worldwide recession. Recently, we have begun to look at how BREXIT will affect the UK economy. Please feel free to leave comments where relevant.

10 Jun 2009

The 'unsinkable' Gordon Brown

Gordon has defied the critics by keeping his job this week despite the current intense heat of British Politics, but what exactly has he done wrong, and what are the consequences of his weakened position?
Gordon Brown has apparently ridden the waves of a rumbling storm over the way he has been freely berating his colleagues who have been caught short by the MP's expenses row. He was not however first the one to 'strike a blow for justice' over this issue as David Cameron beat him to the draw mercilessly applying high standards and demanding retribution from errant Conservatives giving him the moral high ground. Gordon is guilty of not only agreeing with Mr Cameron after the fact, but also appearing to go about the task with some relish and gusto. Somewhat piqued at having been caught with hands in the till, some prominent MP's set about starting a rebellion to bring down their illustrious leader - setting a fire which would smolder until the recent electoral results were announced.
Of course, everyone knew the results were going to be bad for labour, so the surfacing of this rebellion at this juncture was always a dead cert. The results were bad for labour and bad for Gordon Brown's support of the policy of spending our way out of the recession. Across European and local elections hard-line right-wingers were gathering votes left right and centre. Gordon will go down in history as the man that gifted the BNP two seats in the European Parliament, yet he retains his position and shows that he has learned something from 'Teflon Tony'.
Nationalists and Conservatives have potentially been handed a mandate by the voters to scupper any further plans for 'Stimulus' packages. The unfortunate thing about these expanding spending plans is that if they are not maintained, then the money is basically wasted. We are caught between continuing to pursue a policy that will cost untold billions or scrapping it and declaring the money we have already spent 'wasted' - even a slowing down of the policy of stimulation could set us right back to square zero!
I feel that the Stimulus packages were at least doing a PR job to show people that something was being done, however I seriously doubt that the taxpayer is getting value for money. My fear now is that getting off the 'stimulus train' without having reached any destination will still cost the same, yet give the momentum back to the dark forces that make up 'recession'.

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