Most governments would like to spend more and tax less especially when approaching an election. New Labour has been on an election footing since Gordon Brown was crowned leader and (surprise surprise) the size of the fiscal deficit has gone up and up since then. The G20 meeting was of course nothing more than political cover for turning this significant fiscal gap into a chasm.
As well as being politically cynical and utterly irresponsible by passing the tax burden onto future generations, increasing the size of the state is economically damaging. Much research negatively correlates the proportion of government spending in the economy with economic growth.
In Mervyn King, we have a discredited Bank Of England head, who is probably more focused on fighting to keep his organisation independent than tackling the real problems we face. These bank forecasts look like complete fantasy to me. The recession is much worse than policymakers seem to realise. Here in the real world, bad news is accelerating. Gordon Brown seems quite happy. He is a vampire feeding on our misery.