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Even deeper spending cuts and a rise in interest rates would risk a depression. Tory apologist Fraser Nelson in the Spectator thinks that I am wrong. I am not. I am afraid his critique is entirely unconvincing, showing no knowledge at all of basic economics. Following his suggestions would plunge the economy into depression. Let's deal with his comments in turn.
1. "Gordon Brown may have gone, but advocates of his calamitous policies remain."
Exactly which calamitous policies are you talking about Fraser? Making the Bank of England independent, staying out of the euro, saving RBS, Lloyds and Northern Rock from failing and preventing the British economy going into depression? As I asked Michael Fallon in an earlier blog, exactly what policies would you have implemented...