C. Flower
01-05-2010, 03:28 PM
http://www.google.ie/url?sa=t&source=web&ct=res&cd=1&ved=0CAcQFjAA&url=http%3A%2F%2Fwww.guardian.co.uk%2Fbusiness%2F2 010%2Fapr%2F29%2Fmervyn-king-warns-election-victor&rct=j&q=of+England+governor+Mervyn+King+reportedly+said+ austerity+cuts+will+be+so+severe+that+general+elec tion+winner+will+make+itself+unelectable&ei=FEXcS8i0MpSy0gSoiei6Bw&usg=AFQjCNFgUcgOJmy2qMNKp1-k6NtbAsnW6Q
Governor of the Bank of England Mervyn King (http://www.guardian.co.uk/business/mervyn-king) is warning that the victor in next week's election will be forced into austerity measures that will keep the party out of power for a generation, according to the US economist David Hale.
Asked about the possible contagion from Greece's sovereign debt crisis (http://www.guardian.co.uk/business/debt-crisis+world/greece), Hale cited the high debt levels of the major developed economies, including Britain, and then went on to comment on the British election campaign.
"I saw the governor of the Bank of England [Mervyn King] last week when I was in London and he told me whoever wins this election will be out of power for a whole generation because of how tough the fiscal austerity will have to be," Hale said in an interview on Australian TV reported by Reuters.
The Bank confirmed that the governor had had a private lunch with Hale, but said it had been two months ago. It declined to comment on what had been said.
Mervyn King has been telling the British public to prepare for cuts in living standards for the last two years, even before the crash. Reasons included peak oil, the aging population and the shift to the East.
The whole election campaign has the unreal aura of a dance on the decks of the Titanic, with every commentator accepting that massive cuts are on the way but also letting the candidates off from spelling out in detail what they would cut.
One question not being asked is whether Britain can maintain its massive war budget, which has more to do with its imperial past than its fiscal presence.
There are also big question marks over the situation of the North - the Briish presence has in the past been shored up there far more by public sector salaries than by military measures.
Change is inevitable.
Governor of the Bank of England Mervyn King (http://www.guardian.co.uk/business/mervyn-king) is warning that the victor in next week's election will be forced into austerity measures that will keep the party out of power for a generation, according to the US economist David Hale.
Asked about the possible contagion from Greece's sovereign debt crisis (http://www.guardian.co.uk/business/debt-crisis+world/greece), Hale cited the high debt levels of the major developed economies, including Britain, and then went on to comment on the British election campaign.
"I saw the governor of the Bank of England [Mervyn King] last week when I was in London and he told me whoever wins this election will be out of power for a whole generation because of how tough the fiscal austerity will have to be," Hale said in an interview on Australian TV reported by Reuters.
The Bank confirmed that the governor had had a private lunch with Hale, but said it had been two months ago. It declined to comment on what had been said.
Mervyn King has been telling the British public to prepare for cuts in living standards for the last two years, even before the crash. Reasons included peak oil, the aging population and the shift to the East.
The whole election campaign has the unreal aura of a dance on the decks of the Titanic, with every commentator accepting that massive cuts are on the way but also letting the candidates off from spelling out in detail what they would cut.
One question not being asked is whether Britain can maintain its massive war budget, which has more to do with its imperial past than its fiscal presence.
There are also big question marks over the situation of the North - the Briish presence has in the past been shored up there far more by public sector salaries than by military measures.
Change is inevitable.