UK economic growth in the 3rd quarter has fallen to just 0.4% from the 1.2% in the previous quarter. A two-thirds reduction in growth is likely to bring about another lot of "quantitative easing" i.e. printing another £50bn of fake money by the Bank of England. As on previous occasions when the Government did this, it will undermine the pound, causing yet another fall in the value of sterling.
The cuts and one million job losses (estimate by accountancy firm PWC) that will be caused by the Con Dem coalition's £81bn annual reduction in public spending, is already "damaging household confidence, weakening investment intentions and depressing the economy" (Independent 25/10/10). Along with a devaluation of the currency, the coalition is well on its way to causing yet another recession.
We should be spending money saved from cancelling Trident and withdrawing from the Afghanistan on investing in Green Jobs making our homes, hospitals and public buildings more fuel efficient and saving much more money (and lives) in the long run. All things the Lib Dems promised, but reneged on once elected.
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