Failures of Paul Ryan budget on display in Britain’s double-dip recession

>>> glow of his primary victory, mitt romney says his emphasis will be on the economy. since he described the budget as marvelous, it is interesting to see what will come home to roost if romney becomes president. the home of harsh austerity measures , measures that now plunged the british economy back in a double dip recession, and placed prime minister cameron on the defensive during today's parliamentary questions.

>> today we had the catastrophic news that britain is back in recession. i'm sure the prime minister spent the last 24 hours thinking of an excuse as to why this is nothing do with him. so what is his excuse this time?

>> it's his catastrophic economic policy , his plan for austerity, cutting too far and too far, that has landed us back in recession.

>> the complacent arrogant posh boys just don't get it.

>> wonder who he could be referring to. bill cohen is the author of power and money how goldman sachs came to ruled the world. good afternoon, bill. the british government slashed 25% of its housing expenditure. 25% of its other expenditures, social programs and so far. and now find themselves double-dipping into recession. yet we read in paul ryan 's budget that it would cut $120 billion over the next two years from discretionary programs and 284 billion from mandatory programs. why do we believe this a ryan budget will do anything but what has happened in britain ?

>> there's no reason to believe that it won't be exactly the same thing. you cannot possible, martin, cut that much spending out without some sort of corresponding increase in taxes. we all know what they are at this point. they have been renumerated repeatedly. after the election, because of the expiration of the bush tax cuts , because. see quester that everyone talked about, there will be in the next few years, up to $7 trillion in cuts that we are going to lose in spending in this economy. which means that we have a perfect blueprint in what we saw in the uk with the double-dip recession. if that happens without congress taking action then well face the exact same thing here.

>> you know what is incredible in britain is that last week, the head of the treasury, the chancellor as he is announced he was cutting the highest rate of tax from 50 to 45%. here we have an economy where austerity is the number one default approach, where cutting taxes is seen as the right thing do and double-dip recession and the projected expectations for the next quarter, another disaster.

>> and you have mitt romney talking very much the same thing. if he is adopting the paul ryan budget. talking about cutting taxes for high wage earning people again. i mean, without any corresponding increase in tax increases, you know, you are asking for trouble. it is just -- there's no question about it. you can see it coming. it is not even slow motion any more. it is totally irresponsible to see this kind of fiscal crisesis come at the enof the year.

>> this is mitt romney last night. he offered his few on how to fix the economy. take a listen.

>> those who promise to spread the wealth around only ever succeed in spreading debt around.

>> others have choeds chose this path. it led to staggering debt and decrease in wages.

>> this is just reverse of what we just discussed. what is he talking about.

>> he is talking about a vision for america that is not practical or realistic any more. we are being financed, frankly, by the chinese, who are absorbing our budget deficits . irskin bowles gave this example last night. we protect the tie wau hemnes in the chinese invade. to do that, we have to broer from the chinese it pay for what it would cost for the military action in tie taiwan. if the chinese change their mind about financing our budget deficit ,er with out of luck.

>> economy is forecasted to drop to below 8% by the end of the year, down from an early projection of 8.2%. do you agree with that assessment?

>> i think that markets and the economy are cyclical. we have been through a very, very rough patch for the last four years. i don't want it minimize that in any way.

>> you haven't.

>> i haven't. but you have to admit that things are beginning to pick up. unemployment numbers are beginning to go down. the economy is picking up steam. the markets are stronger. the stock market is better. jobs are being created in the private sector. i see this momentum continuing slowly and that is going to trickle into demand and then some of the trillions of dollars that is on the balance sheet of corporate america will be reinvested into this country and i think we will get into a virtual cycle shortly. don't know if it is in time for president obama . i don't know if it is in time to save him or not but i think these things are cyclical and we are under a better place than we have been for four years. these things are great, but it is getting better.

>> finally, and briefly if you can, bill, briefly what we know about europe and given what we know about the paul ryan plan and mitt romney , what should they do in terms of offering alternative economic plan for the country?

>> they should do what they are incapable of doing, which is admit that we need to raise taxes on the wealthiest and balance our fiscal situation and get our budgets back in order again.

>> not in a month of sundays, i bet.

>> not mitt rm knee.