Posts Tagged ‘17.5%’

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Super Gordon Saves the World

December 10, 2008

Well one of the things about the English is that, supposedly, we are quite humble, polite people; with of course the exception of the swathes of people who listen to ‘da hip-hip moosik’ and wear “caps n ‘oodies” whilst running around shopping centres after dark going “brup brup!”

But I mean our adults, they are pretty humble right. Well seems our Prime Minister disagrees.

In Prime Ministers Questions this week, Gordon Brown declared “We have saved the world”. Check it here.

So. Since Gordon has saved your sorry little ass, you better read on to find out how he did it.

Cutting VAT by 2.5%

Genius. At least that’s what Gordon will tell you. I actually found an envelope, which on the back I found the mathematical and economical basis of this decision, which the government announced recently, which sees EVERYTHING in the ENTIRE country get 2.5% cheaper.

Recession = Unemployment = Less money = Less spending = Less Jobs = Less Money

Ergo

Recession = Unemployment = Less money BUT + approx £12.5billion of money diverted away from the treasury back into the pockets of the consumer = Everything is going to be fine and the people will be demanding for a statue of me in Trafalgar Square.

Problem

£12.5 billion! That’s alot. I could definitely get a PS3 with that, which would be sweet. But, how does Gordon Brown know that’s how much money the economy needs? Uh oh, he doesn’t.

Thanks to knutjobs.com!

Thanks to knutjobs.com!

But that’s just an arbitary point really, the real point is that the £12.5billion isn’t something Gordon found behind the sofa in Number 10. Nope. It’s just tax. Which Gordon isn’t going to take. The money isn’t really being pumped into the economy at all, it’s just not being sucked out.

So it’s a random amount of money and it’s not even being pumped in. But the ultimate error is Gordon has already spent the £12.5billion because he was pretty sure he was actually going to suck it out.

So the £12.5billion which isn’t being sucked out has already been spent, so instead Gordon is borrowing £12.5billion so the bailiffs don’t come to the Commons and rip out that lovely green trim they have going on there.

So, Gordon’s VAT cut is him not sucking out £12.5billion from the economy, but just sucking it from somewhere else. But we’ll have to pay them back. And we’ll have to pay them back around £20billion, because of interest.

So Gordon Brown has mortgaged the country for no reason, causing our currency to crash to record lows, as most investors in the UK have decided to all collectively fuck off very quickly,  making all our stuff cheap for the entire world to enjoy. With that deflationary event, the rest of the world can ride out the recession as Britain returns to being the sweatshop of the world.

And that’s how Gordon saved the world.

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