Britain has being conning the markets by creating the illusion that we are cutting spending in order not to spook Mr Market and keep interest rates on government bonds low.
The reality is very different.
State spending increased in both 2009-2010 and 2010-2011.
Whilst it fell in 2011-2012, it was only by 1.5% and the total spending was still 2.4% (£22.6bn) higher than in 2008-2009.
At best the spending "cuts" amount to little more than £1 in every £100 spent.
Whilst the deficit has been cut by £38bn, 75% of this "cut" has come from higher taxes and only 25% from reductions in public spending.