>>Interesting that Germany and France have just posted better than expected growth figures while in the UK where the Conservatives are using austerity to promote growth (like that always works) there is no sign of any recovery whatsoever. It seems clear that the economies of the countries practising the most austerity (spain Greece UK etc) are tanking in a big way.
>
>Most economists would have predicted that. During tough economic times the government needs to spend more money, not less.

agreed, if government is able to reduce the deficit in easy economic times.
But that tradition seems to be known only in pre-election speeches ;-)

And I realize GWB was one of the biggest failures on that account, as was Reagan.

>Unfortunately there is a lot of sentiment for belt tightening here as well.

The markets/economy is already habituated to the "added stimulus".
Going wildly (W not M as first letter!) overboard with the analogy here,
more of the same medicine might turn into poison.

regards

thomas