The British Office of National Statistics published the latest National Accounts data for the third-quarter 2012 yesterday, which showed a modest burst of growth, consumer driven via the Olympic Games. It is a temporary spike in a downward trend. I will consider the growth data another day. It follows the release last week (November 21, 2012) of the latest – Public Sector Finances – for October 2012, which demonstrates why fiscal austerity is self-defeating. By failing to acknowledge that when non-government sector spending is insufficient to drive economic growth at levels sufficient to reduce unemployment there is a need for increased discretionary government net spending to support growth, the British government not only is creating an increasing economic malaise but failing to achieve its own (mindless) targets – a reduction in the deficit and outstanding public debt. The lesson is that fiscal austerity is self-defeating on all counts – the things that matter (the real economy including unemployment) and the things that don’t matter (financial ratios).