So neoliberals like George

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The Guardian has reported that:

The International Monetary Fund today said the UK economy was on the mend after its deepest postwar recession and praised the coalition government for its hardline approach to cutting the budget deficit.

In its annual health check of Britain, the Washington-based fund said George Osborne's planned cuts in public spending were unlikely to derail growth.

I think this is about as newsworthy as reporting Alex Fergusson thinks Manchester United think MU are going to win the Premier League.

The IMF is neoliberal and always demands reduced government spending to tackle deficits.

The ConDems have done that.

The IMF say well done.

Purrlease tell us news.

OK: try this, which was Larry Elliott in the Guardian this morning:

Th[e ConDem approach] has always been a contentious strategy — owing more to orthodox neo-liberal theory than to conditions on the ground — and it looks more and more questionable as the months roll by.

Three pieces of evidence are relevant here. First, the recovery in the global economy lasted from spring 2009 to spring 2010 but is now running out of steam. Second, the outlook for the UK has deteriorated markedly since the burst of growth in the second quarter of this year. Activity in the housing market is back to the levels of spring 2009; credit flows to business have fallen for five months, high-street spending is weakening and unemployment is rising.

Finally, there is the dire state of the Irish economy, back in recession after just one quarter of expansion. The financial markets ought to be impressed by the tough fiscal stance of Brian Cowen's coalition government. In reality, long-term interest rates are going up because the markets believe — rightly — deficit reduction is being impaired by the economy's poor growth prospects.

That’s the objective reality of this, on the ground.

Oddly an IMF employee I was talking to today agreed…..

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