Britannia Radio

Another grim warning - especialy aimed at Britain - from the IMF.

This is followed by a real row about the almost incredible news that 
a Labour government of all people is suggesting that, in future, 
Social Fund loans for temporary emergencies, mainly used by the 
poorest in the land, should move from being interest free to a penal 
rate of interest as high as on credit cards.    The mind boggles 
trying to envisage what kind of idiot could dream up such  a lunatic 
policy.  It has received an immediate 'roasting' from all concerned  
in all parties!

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BBC ONLINE   21.12.08
IMF urges spending to spur growth

More spending by governments will be needed to stimulate worldwide 
economic growth, the head of the International Monetary Fund (IMF) 
has told the BBC.

Dominique Strauss-Kahn said he feared measures announced by the Group 
of 20 nations last month would not be enough.

The IMF has already cut its forecast for global growth next year, and 
he said the next projection, due in January, would be even worse.

Mr Strauss-Kahn spoke of "2009 as really being a bad year".
"I'm specially concerned by the fact that our forecast, already very 
dark... will be even darker if not enough fiscal stimulus is 
implemented," he said in an interview with BBC Radio 4.

He said it would take a spending stimulus equivalent to about 2% of 
global Gross Domestic Product, or about $1.2 trillion, to make a real 
difference.

The level of debt in the UK was "disturbing", he said, and although 
he would not have previously recommended that the government borrow 
more, given the severity of the economic downturn it was the lesser 
of two evils.

"The question of having social unrest has been highlighted by 
journalists and I can understand that, but it's only part of the 
problem," he said.
"The problem is that all the whole society is going to suffer."

In November, the IMF lowered its global economic growth forecast to 
2.2% from 3%.

Last week, Mr Strauss-Kahn said the IMF could cut its 2009 forecast 
for China to around 5% amid an "unprecedented" global slowdown.
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HEADLINE NEWS   21.12.08
=Mail on Sunday  Labour MPs revolt over Brown's plan to charge 27% 
interest on emergency loans to poor

=BBC Online  Poor 'may face state loan charge'
Emergency state loans given to the poorest people in the UK could 
cease to be interest free, under changes being considered by 
ministers. - - - - -Shadow work and pensions secretary Chris Grayling 
said: "These proposals are simply outrageous.
"Thousands of people are losing their jobs every week, and it is 
nothing short of extraordinary that the government's answer is to 
propose abandoning interest-free emergency loans, and start charging 
27% a year instead.

=Sky News     'Loan Shark' Hike For Low Earners
People who take out emergency loans from the Government may soon have 
to pay them back at credit card-style rates.
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POLITICS HOME    21.12 08
COMMENTS
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The Andrew Marr Show, BBC One  at 09:20
Cable: Emergency state loan proposals are "completely self defeating"

Vince Cable, Lib Dem Treasury spokesperson

Mr Cable said the government proposals for increased charge on 
emergency state loans were "totally unacceptable".

"The social fund is an aspect of social security in emergency times, 
there is a proposal from the government that very high interest rates 
should be charged on this. This government has revived the social 
fund but now seems to be destroying its purpose.

"It's completely self defeating. It's just driving people who are 
already in difficulty into even further difficulty.

"It's harsh, it's insensitive and it doesn't reflect the needs of the 
day."

He said that the actions of the high street before Christmas had 
shown: "The sound of desperation, this thing about keeping the shops 
open 24/7 is tough on the staff and shows how they are desperate."
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The Andrew Marr Show, BBC One at 09:50
Hague: Govt loan plan "outrageous"

William Hague, Shadow Foreign Secretary

Mr Hague said it would be "astonishing and outrageous" if the 
government levied interest on social fund loans.

Asked about reports of such plans, Mr Hague said: "It's astonishing, 
it's outrageous. Here we have a proposal for interest rates of up to 
27%, of the worst store cards and loan sharks, going to be imposed on 
the poorest people in the country."

Mr Hague also said an incoming Tory government would "hope" not to 
have to raises taxes.

He said the government had given Britain the biggest national debt in 
the world, adding: "Gordon Brown will have wrought greater 
devastation on our public finances than anything other than world war.

"We would hope not to be in a position of raising tax, but we are 
going to inherit a desperate situation."