In reply to Game of Conkers:
> (In reply to Shani) Whilst I agree that Iceland have turned things around, the hit of nearly 15% devaluation and 20% inflation they took would not be something that the UK could endure particularly well.
>
> Having said that. This will happen to us and is happening right now. Just at a much slower pace, probably taking the next 15 years to play out.
Maybe but I am not sure if anyone really knows. There is re-trenching of the economy going on in the UK which will obviously precipitate some kind of pain, but there are firm signs of growth in manufacturing (cars production in particular), aerospace industries, creative media and so forth.
This is all against a back drop of global re-trenching which confound robust, long-term forecast.
Ed Balls really is an arrogant fool. On statistically insignificant data he makes such firm proclamations. World economics are way to subtle in their integration and dynamic in their ebb and flow for him to state a 'cure' for our ills. Whilst Osborne does seem to be missing some tricks, focus on the debt is paramount, but not the be-all and end-all.