We didn’t mention this when it happened, but here’s some big news for one of our themes for the fall, that European austerity will fail to work as advertised.
This week, the UK reported that its budget deficit in August blew out to a record level.
Bear in mind, this comes even as the country is winning plaudits for getting a grip on its budget situation pro-actively.
But what we’re starting to see all over the place — Greece, Ireland, and now the UK — is that spending cuts don’t necessarily lead to deficit cuts.
When we see evidence that this isn’t the case, we’ll bring it, but for now, the hits keep piling up against austerity being a success.