Stormy Weather....

Left Foot Forward had this assessment of Cameron's speech within minutes of its completion. Devastating. Maybe the Tories should be glad that, in the words of a Tory minister quoted in the Guardian, it'll be forgotten in a week....

Anyway, to substance: a criticism from many economists of the speed and depth of the Tory cuts has been that they risk a "double dip" recession, i.e., having been coaxed out of a short recession by an expansion of the money supply, the economy reacts to the sudden austerity by sinking back into negative growth. Recession returns.

The magazine Public Finance reveals figures released today by the National Institute for Economic and Social Research show that growth has slowed dramatically.

"Latest economic figures have shown a marked decline growth in the third quarter of 2010, with the onset of government austerity measures cited as a factor in slowing the economic recovery.


"Data released this afternoon by the National Institute for Economic and Social Research showed that growth for the three months up to September stood at 0.5% – less than half of the unexpectedly high figure of 1.2% for quarter two." 

Under Doctors Brown and Darling, the ailing economy struggles to a frail recovery...but now the there's a new team of doctors. They're cocky and confident, but much less experience, and their Patent Coalition Medicine seems to be choking the patient. Pulse down, circulation sluggish, a double dip beckons the patient...having rallied briefly, it's eyes flutter....

Now more data about a faltering housing market from the Halifax via Left Foot Forward (again). Of course constantly rising house prices is not necessarilly a "good thing". But as a harbinger of the dreaded double dip they are part of a growing body of evidence that those who think that too much austerity is dangerous could be right. And Georgey Boy could be wrong....

The real cuts are still to come by the way....