TIME RUNNING OUT FOR THE CONSERVATIVES AND THE COUNTRY

George Osborne's strategy for addressing the
catastrophic consequences of the previous
goverment's addiction to increasing public debt
is running out of time.

As became evident this week, the Chancellor's
task has been made even more difficult by the
confusing intervention of IMF chief, Christine
Lagarde. Having backed Osborne's austerity
programme - this year the UK Government's
public spending will still exceed its income
by over £100bn - she now suggests more public
spending to stimulate growth. 

Ms Lagarde also cautions that the US, which the
IMF predicts will expand at twice the rate of the 
UK economy next year, should "fix the pace" of
its fiscal adjustment. She suggests there should be
smaller up-front cuts and that the deficit reduction
needs better planning. The Federal Reserve's
Ben Benanke should take due note and continue
doing precisely what he has been doing. 

The Chancellor is mindful of the truism that you
cannot spend your way out of debt. While
supply-side reforms should be accelerated, the
view of Mark Carney, Governor-elect of the BoE 
that economies need "fiscal anchors"will come
as welcome support, as will Moody's
confirmation of the UK's AAA credit rating.

The views of a lawyer turned economist aside,
the Government's ability to get things back on
track continues to be frustrated by the
disproportionate influence on David Cameron
of junior members of the Coalition Cabinet.
Since it was formed the Lib Dems appear to
have been engaged in the politics of
symbolism, rather than effective measures
needed to raise GDP and rebalance the economy.

The Lib Dems have not been about growing the
national cake, but producing from it the maximum
nomber of crumbs, distributed on the basis of
what they consider is social justice. The country
might be going bankrupt, but at least everything
is fair.
  
Conservative attempts to create a credible
road-map to achieving national solvency and
improved public services are littered with Lib
Dem obstacles to progress. Some obvious
examples are their defence of the 50p tax rate,
Vince Cable's suggestion of an annual wealth tax,
his calls to make EU employment law even more
draconian for small businesses, together with
intransigence over free schools, health and
immigration policies.
 

Having won 57 seats at the General Election

compared with the Conservatives' 307, never has

there been more a case of the tail wagging the

dog. It is time for David Cameron to show Nick

Clegg and Vince Cable who is running the

Government and do what is right. Losing the

next election will be the final nail in the coffin for

the Conservatives and the country.

.