There Have To Be Consequences

SUNDAY, NOVEMBER 16, 2008

There Have To Be Consequences

Hack it back to basics

All weekend long we've been listening to the People's Broadcaster reporting the grave news about George Osborne.

As we know, Osborne has been criticised by the government - the government,mark you - for daring to suggest that their policy of fiscal incontinence might possibly blow sterling apart (see this blog). And the BBC has dutifully followed the government line that Osborne is a dangerous halfwit who is single-handedly undermining the financial salvation offered by the Great Helmsman.

WTF do the BBC think they are? The main story of the weekend is quite simple and very different to this partisan nonsense. It is that the G20 has firmly rejected/ignored Brown's half-baked proposal for internationally coordinated fiscal reflation. Coordination that was absolutely vital if Brown was to stand any chance of getting away with his giant tax "giveaway" here.

Maybe the BBC journos haven't bothered to read the communique. So for their benefit, here's the sole mention of fiscal reflation:

"We will... use fiscal measures to stimulate domestic demand to rapid effect, as appropriate, while maintaining a policy framework conducive to fiscal sustainability."

Translation: we have specifically not agreed to Brown's coordinated fiscal reflation (I know you don't need it spelled out, but just for completeness - "as appropriate" means that no member government is agreeing to do anythingunless they themselves decide to do so; "while maintaining a policy framework conducive to fiscal sustainability" means many of the other members think Brown-style fiscal reflation would jeopardise hard-won stability... and probably their own currencies).

What happens if we go ahead on our own? First, much of the boost will leak straight out overseas, failing to lift our own economy substantially, but adding to our already massive current account deficit. Second, it stands a good chance of spooking the currency and bond markets... just like George says.

Look, we know we keep going on about the pants lefty tax-funded BBC, but we've just had enough. On a personal level we are seriously thinking about joing the telly tax rebels who refuse to pay (especially now we know the BBC has backed away from prosecuting). And on a national political level, there have to be consequences for the way they systematically undermine our future well-being by supporting Big Government Labour and bashing any Tory who even hints at believing in smaller government.

Come the Revolution, this time the BBC must at the very least be hacked back to that one TV channel and one radio station. There must be no mercy.