This afternoon, The Slog contributed this piece to Martin Wolf’s (left) comment thread. His article is (as always with Mr Wolf) well worth a read.

Martin

This piece is a brilliant summation of how polemically-dominated minds are inclined to think, but I’m not sure there is any room any more for Plan B. Until the bailout costs (and then the ONS numbers on private sector output, export performance and trade gap) I would’ve preferred a gradual deficit reduction where investment and cost were clearly delineated.

But we left it too late for that luxury….and maybe there’s a silver lining in that. One reason we have dithered and obfuscated on austerity is the ludicrously high level of voters’ material expectation. The wealth/gold balance is heading East and we can’t live high on the hog any more. A stark shock may be exactly what we all need.
At least then the UK might grasp that without selling added-value British-branded cachet to that increasingly affluent East, we are doomed to Second World status.

We simply aren’t sweating our assets enough – and changing the economy’s structure enough – to compete. But that will take half a decade to organise at least. First and foremost, we need to survive as a trustworthy debtor.
I do realise that the choice between a hugely changed standard of living and bankruptcy is not a pleasant one. It is, however, something of a no-brainer.