Why is the chancellor being savaged for telling the ^truth^ about the economy?

[Monkeytrousers]

I am baffled

especially as I don't think 'talking it up' was working -

The media have decided it's time for a change. That's happily coincided with the start of an economic downturn. So not long till David Cameron now.

I've made the mistake of replying as if GB was the chancellor, and not the PM .

Well, Swedes, when my electric and gas bill goes up, the tax I pay on them goes up, too.

When my car tax goes up, that's an increase.

When fuel costs go up, I pay more tax/duty at the pump.

All that is not a neglible amount.

And still many more were stung by the abolition of the 10p band.

The difference this time (and the reason that we are all f**ked to a certain extent) is a global energy shortage plus a global food shortage. Of course prices fluctuate but the new reality for the UK is expensive food (or perhaps, food that actually reflects its production costs for the first time in a while) and expensive energy, whether it is doing the laundry or gas for the car. No matter what the Govt says, oil prices are not going to come down in the long term and certain analysts are predicting a 'stable' price per barrel to be $200 over the next few years. Of course this makes everything more expensive as absolutely everything is dependant on oil to some extent or other.

A drop in house prices is the least of our worries imo.

If the economy is a based as 60 years ago then that takes us back to 1948, which was when the UK nearly went bankrupt and had to be bailed out by the US.

expat don't forget council tax that went up again this year. I expect it will increase alot more next year now the government has announced we will all be paying for everyone who over stretched themselves on mortgages and are facing repossession.

thatswhatyoucallarecession

The truth is not as nice as pretending that it is all good and the latest splurge of taxpayer money will help "decent" homebuyers rather than those major housing developers with clout.

The absurdity of "helping" our first time buyers by doing everything possible to keep the cost of housing extraordinarily high seems to be lost on most politicians. And the blatant lack of decency on the part of those, like Hazel Blears, who are urging young people to buy now also seems to be missed.

Thing is this downturn is part of the stability of the market - it isn;t static and will have to go down if it is to go up agian.

indeed, that's why it's called a cycle.

but people have short memories and seem to think it should always move in one direction or that somehow they should be immune to any downturn.