How can the treasury predict growth for the uk of around 3% when we are nowhere near that figure now and are about to make huge cuts in the public sector which impacts gdp negatively ? Surely the bigger the cuts the larger the deficit, hence why bottler says no cuts yet, but as soon as they come we double dip.
Cutting will reduce the deficit. We won't double dip because of the enormous reflatioary pressure we've been applying for nearly three years with ever falling interest rates (to wit - ever more counterfeiting paper currency) and a falling currency.
Other major economies have similarly been stealing private savings and pumping them into an inflationary boom, so it will take a bit to slow it up.
Cutting will reduce the deficit. We won't double dip because of the enormous reflatioary pressure we've been applying for nearly three years with ever falling interest rates (to wit - ever more counterfeiting paper currency) and a falling currency.O