From Brown To Obama, Things Are Going To Be Smelly

While the liberal Establishment and accompanying media work themselves into a lather about the inauguration of Barack Obama (Jim Naughtie sounded close to tears yesterday) back in Cloud Cuckoo Land Messers Brown & Darling still seem utterly convinced that you can spend your way out of a financial crisis.

Throwing our good money in such hot pursuit of the bad that's already disappeared down the proverbial drain exposes us to more risk than ever before, massively (immeasurably, in fact) increases our exposure to toxic assets, and the ramifications will be felt for decades to come. As we stare into the bottomless put that is Bail Out II, two things are crystal clear: 1) Bail Out I has failed, and 2) the Government has absolutely no idea what it is committing itself (us) to. It is, as George Osborne said yesterday, an utterly blank cheque. And who's to say there isn't going to be a Bail Out III ? Or IV ? Make no mistake, this one could run and run.

It would be nice to think that over the pond a dose of common sense is about to be administered. Sadly, it ain't so. Obama reminds me of one T. Blair; long on optimism, charisma and rhetoric, decidedly short on specifics, and absolutely bereft of anything that doesn't involve more government intervention and expenditure. Doubtless many Americans will bask in false hope for a few months, just as many Britons did (not this one, mind !) post May 1997. But the US of A is heading the same as we are - more tax, more spend, more government control, less individual freedom.

Two traditional bastions of the free world are becoming less free by the day. And by the Bail Out.