Britain and US aim to borrow their way out of trouble

Gordon Brown has given the clearest hint that Britain and the US are ready toallow aborrowing bulge to deal with the crisis in the globalbanking system. Brown used a statement on the EU Council to the Commons to say that "we will take whatever action is necessary to maintain economic stability".

Coming hard on the heels of the Bank of England pumping £5bn into the banking system today,it means the soaring borrowing figures announced in the Budget only last week by Alistair Darlingmay already be out of date.

The Chancellor is looking as gloomy as the economic climate. His reputation for a 'safe pair of hands' has been shot full of holes by his mishandling of the Northern Rock fiasco.

Weekend polls showed Labour's standing hadslumped to its lowest rating since Michael Foot was the Leader of the Opposition in the early 1980s, largely because there has been a collapse in trust in Gordon Brown and his Chancellor's ability to manage the economy.

Darling appalled some Labour MPs by his complacency when he spoke to them before the weekly Parliamentary Labour Party meeting on the eve of the Budget. One MP pointed out that Darling may be saying everything was rosy, but the banking world was in crisis and they may be heading for a mortgage famine. "You've made me feel depressed," said Darling.

The view of many who were there was 'Welcome to the real world, Alistair'.

THE MOLE: ECONOMIC CRISIS

FIRST POSTED MARCH 17, 2008