Georgie O has obviously got the word from the IMF and World Bank that they think he’s just about to stuff the British economy good and proper. I’m sure it was probably put in more polite terms, but strong enough for him to get Mervyn King out of bed and keep him shivering in his wynsiette pyjamas while he pleaded for a little more quantitative easing. Just in case…you understand.
You know that the shit has hit the fan because a coalition cohort in the shape of Chris Huhne has been trundled out to support beleaguered Georgie (obviously chosen because he’s got a bit more gravitas than the boy Alexander). He is now putting the word out that ‘if the economy performs better, spending cuts will be less urgent…and anyway the cuts are scheduled to be over four years’. Someone at the IMF has been reading the tealeaves and they’ve seen a double-dip recession heading our way.
My guess is that Georgie has been told that if he puts his brain in gear fast, goes for growth and scales back the cutting agenda , there’s just about enough puff in the economy to head the double-dip off at the pass.
We’re about to see a totally new language emerging in the next few weeks as the coalition backtracks furiously. Meanwhile back in the embassy in Washington, only the Chancellor and the laundry maid know how scared he really is.