Embarrassment for Britain's Darling as IMF immediately punctures his rosy predictions of growth by 2010
Alistair Darling's prediction Britain will emerge from the recession next year was immediately slammed by the International Monetary Fund today. In a second humiliation by the IMF in less than 24 hours, the Chancellor's forecast was dismissed as too optimistic. Mr Darling, in his bleak Budget speech, predicted the economy will shrink by 3.5 per cent this year before rising back in 2009 with 1.25 per cent in growth. The Chancellor added that growth would climb to 3.5 per cent by 2011. But the IMF, which oversees the global financial system, countered with a projection that output will in fact drop by a massive 4.1 per cent this year.
Note EU-Digest: the fact is that the IMF and national government predictions, specially those of Britain, have been wrong many times. What ever way we might want to spin the story, the key lies in the hands of the consumer. This means that economic stimulus programs must primarily focus on the bottom of the economic ladder. History has shown us that so called "trickle down" policies are flawed and that continued support for those that already have helped themselves to what was in "the kitty" does not work. The formula is 2+2=4 (not 5). Its as simple as that.
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