Mervyn King, Governor of the Bank of England, is not one renowned for interfering in government policy and yet he has publicly criticised the Prime Ministers desire for further economic stimulus.
In short, Mr. King is saying that UK Plc simply cannot afford any more debt. With the total liability of the taxpayer now more than £2 trillion, when you include our liability for part nationalised banks and current economic stimulus packages, it is clear the Bank of England believe that any further government financial stimulus that requires us to borrow more as a nation will essentially mean we go bust.
And the reaction of government? Well that is difficult to tell. Gordon Brown says there is no disagreement between his Government and the Bank of England, Harriet Harman refused to answer any question put to her on the subject when she stood in for Mr. Brown at Prime Minister's Questions today and the media report that the Chancellor is in general agreement with Mr. King.
That the Prime Minister still believes further economic stimulus is affordable shows just how deeply entrenched within him the feeling of denial has become. If British families have to live within their means so must the British government. What's good for the goose is good for the gander. So it's time to face up to the consequences of our actions as a nation and to admit we are on the brink of bankruptcy as a nation and must stop trying to spend our way out of trouble and get real for the sake of future generations.