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Sustainable Economy > Published by Daniel Elton, July 25th 2011 at 11:47 am

Crisis caused by Cable’s “right-wing US nutters” is welcomed by Tory backbenches

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Business secretary Vince Cable attempted to burnish his progressive credentials yesterday, when in an interview on The Andrew Marr Show he lashed out against right-wing ’nutters’ in the U.S. Congress, who are playing a game of economic chicken with President Obama.

He said:

“The irony of the situation at the moment… is that the biggest threat to the world financial system comes from a few right-wing nutters in the American Congress rather than the eurozone.”

Watch it:

The current crisis focusses on the U.S. government’s debt heading towards a ‘ceiling’ imposed on it by legislation from the 1930s and 1940s, but has been raised consistently by Congress as appropriate since 1979. However, these Tea Party crazies have the sympathy of the mainstream of Mr Cable’s coalition partners, the Conservatives.

Arguing for a debt ceiling for the UK on Conservative Home, Tory MP Sajid Javid welcomed the political deadlock which is taking the world economy to the edge of financial turmoil. He wrote:

“America’s debt ceiling has taken it to the economic precipice. This is both deliberate and welcome.

“If political leaders fail to reach an agreement on slashing government spending by August 2nd, then the United States will default on its debt.  Such an event would send shock waves through the global economy, putting the Eurozone’s problems instantly in the shade.”

Hurray for unemployment and stagnating living standards all round! He has introduced a ten-minute rule bill into parliament, which is due for its second reading in January when we will see the extent for its support on the Tory backbenches.

Javid has widespread backing from the Tory think-tank world. Tom Clougherty, executive director at the ultra-free market the Adam Smith Institute, wrote:

“Bravo, Sajid! I’m a big fan of the idea.“

He goes on to say that we should go further than Javid’s bill:

“As Sajid suggests in his ConHome piece, we should cap the national debt at 40 percent of GDP… tied. We should cap the budget deficit - at 3 per cent of GDP - and the overall size of the state - at one-third of GDP. Again, these should begin as legally binding targets, to be achieved by a specified date.

“We should also have clear rules on what the government can borrow for (capital investment) and what it can’t (current spending), and ensure that all government is transparent and ‘on-the-books’.

“Finally, we should limit the government’s ability to raise taxes arbitrarily. I’d say that any tax rise not specifically detailed in a governing party’s general election manifesto should have to be approved in a referendum.”

If these rules had been in place in 2008, it would have been impossible to bail out the banks, and would have led to a far deeper recession than we did indeed experience. If Mr Cable is worried about right-wingers sacrificing the well-being of millions for the sake of ideological purity, he doesn’t need to look across the Atlantic - alongside him on the greenbenches will do.

  • http://twitter.com/karanmude/status/95445334733504514 Karan Mude

    Crisis caused by Cable’s “right-wing US nutters” is welcomed by Tory backbenches: http://bit.ly/os8PnO writes @DanielElton

  • http://twitter.com/isdancing/status/95445726447927296 Mabel Horrocks

    Crisis caused by Cable’s “right-wing US nutters” is welcomed by Tory backbenches: http://bit.ly/os8PnO writes @DanielElton

  • http://twitter.com/condemus/status/95445951648505856 Hammy Cammy

    Crisis caused by Cable’s “right-wing US nutters” is welcomed by Tory backbenches: http://bit.ly/os8PnO writes @DanielElton

  • http://twitter.com/kikimadden/status/95446713757728768 kiki madden

    Crisis caused by Cable’s “right-wing US nutters” is welcomed by Tory backbenches: http://bit.ly/os8PnO writes @DanielElton

  • http://twitter.com/avichai15/status/95447653038559232 Paul McGlynn

    Crisis caused by Cable’s “right-wing US nutters” is welcomed by Tory backbenches: http://bit.ly/os8PnO writes @DanielElton

  • http://twitter.com/adpucci/status/95447859985522688 Pucci Dellanno

    Crisis caused by Cable’s “right-wing US nutters” is welcomed by Tory backbenches: http://bit.ly/os8PnO writes @DanielElton

  • http://twitter.com/s8mb/status/95450357232181248 Sam Bowman

    Good lord. Left Foot Forward thinks that being unable to bail out banks is an argument AGAINST a British debt ceiling: http://t.co/b0W7TNs

  • http://twitter.com/doublereds/status/95450461284466690 Ruby Chow

    Good lord. Left Foot Forward thinks that being unable to bail out banks is an argument AGAINST a British debt ceiling: http://t.co/b0W7TNs

  • http://twitter.com/asi/status/95450489780576256 Adam Smith Institute

    Good lord. Left Foot Forward thinks that being unable to bail out banks is an argument AGAINST a British debt ceiling: http://t.co/b0W7TNs

  • http://twitter.com/clpf1/status/95451237071331329 Cillian F

    Good lord. Left Foot Forward thinks that being unable to bail out banks is an argument AGAINST a British debt ceiling: http://t.co/b0W7TNs

  • http://twitter.com/therightarticle/status/95451589615157248 Michael

    Crisis caused by Cable’s “right-wing US nutters” is welcomed by Tory backbenches l Left Foot Forward – http://j.mp/oOLrhB

  • http://twitter.com/nhsspy/status/95460307564105730 Watching You

    Crisis caused by Cable’s “right-wing US nutters” is welcomed by Tory backbenches l Left Foot Forward – http://j.mp/oOLrhB

  • http://free-english-people.blogspot.com/ Paul Perrin

    “If these rules had been in place in 2008,” then there would probably have been rules to prevent the banks needing a bailout in the first place.

    But Blair/Brown mis-regulated – not a question of quantity of regulation, but quality. Brown is an incompetent numpty who ‘got away with it’ for over a decade. NB: As much the oppositions fault for not offering an acceptable alternative, as Blair/Browns for causing it.

  • http://twitter.com/shelleyangelie/status/95472388736684032 Shelley Angelie

    Crisis caused by Cable’s “right-wing US nutters” is welcomed by Tory backbenches: http://bit.ly/os8PnO writes @DanielElton

  • http://twitter.com/bristolnuj/status/95479296902168576 Bristol NUJ

    Crisis caused by Cable’s “right-wing US nutters” is welcomed by Tory backbenches: http://bit.ly/os8PnO writes @DanielElton

  • http://twitter.com/boffchops/status/95574169999253504 Jay Thompson

    Crisis caused by Cable’s “right-wing US nutters” is welcomed by Tory backbenches: http://bit.ly/os8PnO writes @DanielElton

  • Leon Wolfson

    The opposition DID offer an alternative, even less bank regulation.

    Really, that one isn’t a winning card for your side.

  • http://twitter.com/adamlangleben/status/95788434127462400 Adam Langleben

    @adamlangleben scarily, Tory MP says US debt ceiling crisis deliberate+welcome and pushing bill to repeat crisis in UK: http://t.co/VBJJcAE

  • http://twitter.com/shamethedevil/status/95840003376160768 John Jackson

    Apparently, some paticularly rabid #Tories will not be truly happy unless and until the global economy collapses !! – http://t.co/RPi3Ltn

  • http://twitter.com/nobiggovduh/status/95899249702744064 NoBigGovDuh

    @adamlangleben scarily, Tory MP says US debt ceiling crisis deliberate+welcome and pushing bill to repeat crisis in UK: http://t.co/VBJJcAE

  • http://twitter.com/karanmude/status/97940106375204864 Karan Mude

    US debt ceiling crisis: Tory backbenchers want to see similar turmoil in the UK :http://t.co/a7XHjQw

  • http://twitter.com/wolfpupjon/status/97944948967620609 Jon (Bambi) Page

    US debt ceiling crisis: Tory backbenchers want to see similar turmoil in the UK :http://t.co/a7XHjQw

  • http://twitter.com/robert_sprigge/status/97946707102400512 Robert Sprigge

    US debt ceiling crisis: Tory backbenchers want to see similar turmoil in the UK :http://t.co/a7XHjQw

  • http://twitter.com/hens4freedom/status/97953515393122304 Hens4Freedom

    RT @leftfootfwd: US debt ceiling crisis: Tory backbenchers want to see similar turmoil in the UK :http://t.co/a7XHjQw #NewsClub

  • http://twitter.com/fauxpaschick/status/97995743536750593 fauxpaschick

    US debt ceiling crisis: Tory backbenchers want to see similar turmoil in the UK :http://t.co/a7XHjQw

  • http://twitter.com/wtbdavidg/status/98075794328395776 David Gillon

    #cuts #Tories think US debt crisis is 'deliberate and welcome' http://bit.ly/n2IMUb

  • http://www.leftfootforward.org/2011/09/chris-huhne-tea-party-tories-philip-davies-dominic-raab-sajid-javid-nadine-dorries-douglas-carswell/ Huhne attacks “Tea Party Tories” – who on Earth does he mean?! | Left Foot Forward

    [...] take their inspiration more directly from their idols in the USA. Sajid Javid wrote in envy of the American debt ceiling, which led to the USA’s credit being downgraded from AAA for the first time ever and a minority [...]

  • http://twitter.com/shamikdas/status/124154602496077825 Shamik Das

    We've just heard from Sajid Javid, who's been droning on about his madcap debt ceiling bill.. http://t.co/ruNv5XIN & http://t.co/R253Q6Ut

  • http://twitter.com/legalaware/status/124167997706338304 Legal Aware

    We've just heard from Sajid Javid, who's been droning on about his madcap debt ceiling bill.. http://t.co/ruNv5XIN & http://t.co/R253Q6Ut

  • http://www.leftfootforward.org/2011/10/herman-cain-rick-perry-crazy-republican-tax-plans/ Republican tax plans put the myth of conservative economic prowess to bed | Left Foot Forward

    [...] Crisis caused by Cable’s “right-wing US nutters” is welcomed by Tory backbenches – Daniel Elton, July 25th [...]

  • http://www.leftfootforward.org/2011/11/usa-2012-republican-primaries-herman-cain-jon-huntsman-mitt-romney-latest/ USA 2012: Cain self-destructs, and Huntsman attempts to drag Romney into the fray | Left Foot Forward

    [...] Crisis caused by Cable’s “right-wing US nutters” is welcomed by Tory backbenches – Daniel Elton, July 25th [...]