"...there is a budget deficit next year of £118bn, which may have to increase again - with another big Obama-style fiscal stimulus - if the recession deepens. My view is that the financial markets will accept actual spending only if Britain pre-announces that after financial stabilisation has worked, it intends to join the euro - otherwise we will find ourselves in the same position as Iceland.
These are the grimmest economic circumstances since the 1930s. Lives and businesses are being wrecked as I write. There will be little appetite for my proposed measures; how much better to hope that we can muddle through, looking for "green shoots" of recovery and doing little radical.
But after last week the government - and the opposition - have to get serious. Britain is on the edge."
Sunday, January 18, 2009
Will Hutton: (my emphasis)