Quite an uncontroversial opinion from Bill Gross. Although, you really should point out that Andrew Balls who is the brother of Ed Balls is managing director of PIMCO Europe.

http://europe.pimco.com/EN/Experts/Pages/AndrewBalls.aspx

Mr Gross is right, Osborne and Cameron slavish adherence to the Thatcherite economic policy and continued obsession about the fiscal deficit is leading us headlong into a prolonged recession – it is imperative that measures are put into place to stimulate our economy – the following article outlines five things that Osborne could immediately do to stimulate the economy:
http://www.allthatsleft.co.uk/2011/09/cameron-osborne-wake-up/

Everyone has known right from the beginning that George Osborne is Economically illiterate and should not have been The Chancellar of the Exchequer but arrogant, know it all, love himself David Cameron had to give one of the top jobs to one of his best buddies.

It’s all looking a bit like employing Andy Culson. It is going to end up a Diabolical Mess.

@2 – Why a state-owned bank? Why not one designed to become a mutual?

And why not restoring rent boards, capping rents, and ensuring that HB actually covers most people’s expenditure on housing, allowing them to actually spend their other income or benefits on the basics, rather than it going to savings accounts of householders.

Oh, and stopping mass social cleansing into the bargain.

Here’s why: http://goo.gl/sYznA

This seems reasonable enough, though with other major economies looking shaky there may be unavoidable external factors coming into play. All the more reason to be more cautious in our ambitions to cut the defecit instead of building the economy now, perhaps?

Slightly off-topic, it was interesting to hear DeAnne Julius, who was on the Bank of England Monetary Policy Committee, speaking out against the 50p tax rate on Today this morning. The best she could come up with as justification for her case was that hedge funds had moved to Switzerland. It does make me wonder about the quality of others who decide our finances.

If the government did increase the deficit and it led to more bonds being made available and at higher yields, wouldn’t companies such as PIMCO make a lot more money? If so (and I would expect all left wingers with their suspicion of the profit motive to follow this logic) shouldn’t we take anything PIMCO says like this with a pinch of salt?