Cameron admits failure to slay the "debt demon"

The warning comes as the global economy stands on the brink of a “chronic” debt-driven recession.

The Prime Minister on Monday conceded that tackling Britain’s debts was “proving harder than anyone envisaged”, raising the prospect that the Coalition would be unable to close the deficit by 2014-15.

That would rule out any significant tax cuts before the next election. It also raises questions about the Coalition’s fundamental purpose.

Departing from the deficit-reduction timetable could raise fears that Britain will face rising borrowing costs as bond markets take fright.

Debt is “a drag on growth”, Mr Cameron told business leaders. “We are well behind where we need to be,” he said....

Read the rest at The Telegraph (UK)

David Cameron: our plan to cut debt is failing

by James Kirkup, and Robert Winnett

MMT to Cameron: "Told ya so."

Mr Cameron insisted that he would not deviate from the plan to cut spending, insisting that slowing growth “undermines further the case for adding to the national burden of debt with even more borrowing”.

Daft, as they say over there.

It's the sectoral balances, stupid.