Mr. Cameron, hailing Canada as a model of fiscal probity and pointing to his own deep spending cuts, argued that debt cutting is the only way to fix a disturbing pattern, with economic growth in Europe and the United States stalled. He said the problem is high debts of governments and individuals, and that the fear that they won’t be repaid will spark a loss of confidence and a rise in interest rates.So how's that joint commitment to making a bad situation worse through austerity measures working out?
Mr. Harper said markets’ fears are at “dangerous” levels, and this situation is far worse than austerity measures would be. “This is the most immediate and pressing problem facing the globe, and it is at a perilous point, and it does have to be dealt with.”
The UK has fallen deeper into recession than previously thought, confirming that the country has officially entered a double-dip. Data from the Office for National Statistics showed that the economy shrank faster than previously estimated between October and December last year, with a decline of 0.4%.(h/t to Atrios.)
The economy also contracted for a second quarter between January and March this year, with the unchanged -0.3% estimate confirming that we are in recession for the second time in four years.