'GRIN and bear it -it'lI get rougher yet,' said Geoffrey Howe at the Tory kOnference, referring to the round of Tory spending cuts. A further £2,000m cuts are now in the pipeline.
Heseltine has shown that me nanceror orine wxcne. quer wasn't joking. He has banned council house bulding ays been inele more than has altas benle le mare taa controlllle une moncy sud ply is only a figleaf to cover this polic massive welfare hat coksi the to gey su Thy nas contaueo lo grow. main borrower of money is not the government, but big business. Company borrowbỉ this for the first six month year was at a recorc billion The Tories have kept inTeresi rales TOTC( companies to shed stock and staff. This. was generate cash ithin budgets. coniyally De-stockme and unemoioy. ment are now record Even with these policies the credit squeeze is creatins navoc with company cash positions, and ine privale ment the highest ever ICUrCu whlle borrowing is on the increase companies have less ash in hand pared their ucULs had a fall on io industry has lad a lall of ) per cent in uncu vucoul ll tue bası yedl. ane oronis ane uves meni are falling.
The effect of this on the moner SUDD Y was nigder the operation the ciling on bank borrowing. iv pcl rouna cus une comDanes cor toreiner wilh ine banks and underwrote Arguments for Socialism system of borrowing from each other. When the multi Hallonais necceo aocluona cash, they simply went to the Euro-currency market.
in i ms corsel was remnovee June The following month there was a significant increase m une more! Thatcher - puzzled by monetarism? turther rise ot 3 per cent il August happened despite the imposition Fading only in creased September. Lis ligan Gocsl inciuae DOrTOWIle Wen to is ree Euro-currency market. it will show us the overall ef fect on the money supply Between rebruarv and September the money supp ly grew • by 16 per cent above the fo per cent. targe : of 7. per cent Even in their own terms, the connepouc Thatcher and Josenh has failed The continuing increase in the money supply I reasury mandarins demanding more culs in une buonc secior. lu only by securing these cuts that employers demands for a lowering i the interes! t rates can be met All this sound reasonable in the Cabine office but reality shows that it doesn't work Monetarism is an experiment in Torv theorv. Unfor tunately the guinea pigs are hospitals, and eventually be urw or tre core