BoE tells Darling to cut the deficit

Here is what Mervyn King told the Treasury select committee today...

"We are confronted with a situation where the scale of deficits is truly extraordinary. This reflects the scale of the global downturn, but it also reflects the fact that we came into this crisis with fiscal policy on a path that wasn't sustainable and a correction was needed.

There will certainly need to be a plan for the lifetime of the next parliament, contingent on the state of the economy, to show how those deficits will be brought down, if the economy recovers, to reach levels of deficits below those which were shown in the budget figures."

A plan?

The UK has the largest fiscal deficit in the developed work. We can not wait for a post-election plan. We need to cut the deficit now.