“deficit – the difference between tax income and spend.”

And that, as you rightly point out is the key phrase but you omitted a small but crucial point. If your salary goes down but you do not reduce your spending your overdraft will rise. You can soften the blow by borrowing but then you have pay that back inclusive of interest.That is exactly what happened on the grand scale – government revenues went down but they continued to spend and in fact increased the spending thereby producing the spiralling deficit to which you referred.

GA – yes, I totally agree with your first sentence. Someone said “there are no easy solutions”. It is a cliche but it is true, largely because the causes are complex.

Beveridge, one of the last great political reformers would be appalled by the evolution of his original and brilliant idea. It never occurred to him that people would renounce the old and traditional ethos of hard work and provision for old age in favour of state dependency. He saw the welfare state living alongside the traditional values and both would be mutually supportive.

That they no longer are is one of the traqedies of the 21st century.

Arthur – One of the triggers, yes, but although I am no economist despite having studied it ,many years ago, recessions always have multiple causes, some of which are not home grown. And as you say no government has ever wilfully brought on a recession but often have contributed to it by their actions.

Tornado – I have read your posts but am not sure if you have answered my question.

Arthur – it takes two to tango. No one was forced to overborrow, so the blame for the financial mess is on both sides. But that mess pales into insignificance next to the steadily increased government borrowing over the past few years.

DCK – not really. There are many ways of using the internet and some suit some and some suit others but there is no necessity to have to have use all of them.

Have a great day, Blue!:D:D

Why pay for a heli when you’ve got a couple of madmen to climb up the mast??

I saw the film a few months a go and passed it around a few friends none of whom would do it for ANY money! Extreme rockface climbing falls into the same category and it’s the relaxed ease that these blokes go about their business that impresses me. For them it’s just a job, I suppose.