Guido has an excellent post here, on Britain's "Through the Looking Glass Economics". He is absolutely right of course: as the McKinsey study he links to says, Britain is now basically tied with Japan for the dubious honour of being the world's most indebted industrial economy. The government is overspending by £20m per hour non-stop, and yet our allegedly fiscally-responsible Conservative opposition only plans to 'make a start' on cuts and would still leave us with a structural deficit after 4 years of Tory government.