SHEER MISERY FOR DAVE

[Cactus Jack]

I can try but people too often try to translate macro-economics into household terms like 'maxed out the credit card' etc so I'm very aware this is going to be a very clumsy analogy.

To get rid of one element let's make the nation a small corner shop rather than a household and let's give him some debts he has to repay. He can either focus solely on raising more money by increasing his margins (putting prices up) and selling off what's left of his current stock, however poor its condition, to raise money to pay off debts AND to pay for new stock or he can take measures to increase demand, putting prices down and getting in some new stock to bring the customers in.

Iceland has taken the second route, it didn't, as Trapezerjohn suggests, tell it's creditors to go to hell (cancel the debts outright) it told them that it wasn't going to make debt payments for a while (went into default) so it could (in terms of our analogy) generate more demand. Now it has resumed the payments of many previous debts from the growth in their economy.

That's a huge over-simplification but I hope it helps.

[Rocthedog]

As more rumblings of rebellion, this time over elections to the 1922 Committee, continue to rock the Tories, news arrives that tonight’s YouGov poll for the Sun has topline figures of CON 31%, LAB 45%, UKIP 8%, LDEM 7%. The 14 point lead is the biggest Labour lead YouGov has ever shown since starting regular polling in 2002.

This would give Labour a majority of 122 if repeated at a General Election.

To add to Dave's woe, Ed Miliband, who long trailed Dave in leader ratings, is now at -23 (still not good, but improved by 10pts) compared to Dave who has slumped to -29...

Finally, if that wasn't enough, Labour have moved ahead of the Tories on who the public most trusts with the economy !! As Ed Balls said, the argument has slowly turned in his favour as country after country is driven deeper into economic despair by stringent austerity measures.

And that even includes Germany.

Good showing for NOW......