The bizarre state of affairs though is that they are talking today about stuff I had predicted happening over three years ago and the “20 years” people are now talking about for recovery was also previously predicted. But I also believe the recovery will be in several phases as the first bite will affect everyone but maybe if the government are aggressive enough it can force the unemployed who can work back to employment status and off the track of burden. If the first bite is done correctly its ripples will improve the economy within 5 years but the long term affects will be at least another 15 years off. We also have to remember that the UK has been ignorant with China and its industrial revolution the UK has become the middle man of Europe and really needs to start looking within its own borders for development. No country should abandon its farming or industrial sectors as they are simply the backbone of any economy. Great to be in finance but look what happened and look how it spread worldwide who lost and who benefited? the poor and middle classes lost and the rich got richer.
I will be interested to see how the speech goes and how much and how quickly things are put into action. But one thing for sure it looks a lot better being thousands of miles away than about to take years of hardship.
Rob Cole, Sky News Online
Britons must brace themselves for huge spending cuts that will hit "our whole way of life", the Prime Minister will warn today.
In a major speech on the economy at 10am, David Cameronwill say that the action he will take to cut the budget deficit will be worse then originally feared and the effects could be felt for decades.
Mr Cameron will warn that "every single person" will be affected.
"How we deal with these things will affect our economy, our society – indeed our whole way of life," he will say at an event in Milton Keynes.
"The decisions we make will affect every single person in our country. And the effects of those decisions will stay with us for years, perhaps decades to come.
"It is precisely because these decisions are so momentous, because they will have such enormous implications, and because we cannot afford either to duck them or to get them wrong that I want to make sure we go about the urgent task of cutting our deficit in a way that is open, responsible and fair."
The decisions we make will affect every single person in our country. And the effects of those decisions will stay with us for years, perhaps decades to come.
The Chancellor George Osborne will tomorrow publish details on the principles meant to underpin the June 22 emergency Budget, which will tackle the £156bn annual deficit.
He and Danny Alexander, the new Chief Secretary to the Treasury, will announce a process to "engage and involve" the whole country in "the difficult decisions that will have to be taken".
Mr Osborne will speak on Tuesday
Mr Cameron told The Sunday Times that the debt problem facing the Government was "even worse than we thought" and the implications could be "more critical than we feared".
He suggested that high welfare and public sector pay bills were high on the Government’s list for cuts.
Child tax credits for better-off families are also expected to be curbed.
Capital gains tax is likely to rise, although there is speculation that there could be generous exemptions for certain groups of people, including entrepreneurs and pensioners.
And Ministers have refused to rule out a rise in VAT, from its current level of 17.5%.
However, the Government wants the bulk of its savings to be made by reducing current expenditure rather than raising taxes.
Nick Clegg, the Liberal Democrat Deputy Prime Minister, insisted at the weekend the cuts would not mark a return to Thatcherism.