George Soros tells David Cameron: change direction or face recession

[CHIMO]

The international speculator George Soros warned David Cameron tonight that the government would push the British economy back into recession unless it modified its hardline austerity package.

Speaking in Davos, Switzerland, the hedge fund owner who famously wrecked the reputation for financial competence of the last Conservative administration on Black Wednesday said the mix of tax increases and spending cuts planned by the coalition was unsustainable.

Soros's suggestion that the UK needed a plan B came only hours after Cameron insisted in fierce Commons exchanges with the Labour leader, Ed Miliband, that there would be no change of government policy following the unexpected news yesterday that the economy contracted by 0.5% in the final three months of 2010.

"I think they may be right in embarking on it but I think they will probably have the sense that they will have to modify it when the effects are felt," Soros said. "I don't think it can possibly be implemented without pushing the economy into a recession." Noting that the initial market reaction to the government's tough stance had been positive, Soros added: "We will have to see it unfold. My expectation is that it will prove to be unsustainable."

http://www.guardian.co.uk/politics/2011/jan/26/george-soros-david-cameron-recession

[Dawson Leery]

1. Labour leads the coalition in popularity.

If Tory Tool Davie puts the economy back into a recession, the current government will not last 5 years.