The Prime Minister is rapidly losing the few strands of credibility he had left with more scaremongering about leaving the EU. The financial doom is he is now predicting is totally and utterly impossible mathematically.
The PM will today go onto the airwaves and announce that mortgages could go up if the UK votes to leave the EU. Yet last week, he was predicting that the Bank of England would need to pump money into the economy if the UK voted to leave the EU.
This is completely impossible, it just can’t happen. Basic economics should tell him and everyone else that these two things are at different ends of the scale and they can never happen at the same time.
The Bank of England would only pump money into the economy to increase the money supply. They raise interest rates to slow money supply. To claim that these things can possibly happen at the same time is nonsense.
The simplest way to describe it is to imagine Murray Walker claiming that Nigel Mansell is going faster and slower at the same time. That is what the Prime Minister is trying to claim.
Why aren’t the rest of the MP’s who still back the Prime Minister not having a word in his ear and telling him how moronic he is now being? Is it because they don’t understand basic economics either? Probably, not many fill us with economic confidence.
If the PM truly believes his two claims, it would explain why this country is in such a financial mess. If he doesn't as is most likely, he’s just lying again. Whatever the result of the EU referendum, he will have to stand down.