Brown's big idea 'could bankrupt us'
Downing St. reacted angrily last night after Bank of England governor Mervyn King told MPs the Britain was broke.
There was a stern response after Mr King explained the country, already nearly £2trillion in debt, could not afford a further stimulus package.
The comments were a blow to Gordon Brown's bid to sell a global fiscal stimulus to world leaders at next week;s G20 summit in London.
The prime minister's spokesman responded: 'we have been clear the we would do whatever it takes to see us through the global downturn.'
He also pointed out Mr King was supposed to be explaining why he had failed to keep the inflation targets.
The Consumer Prices Index rose unexpectedly from 3% to 3.2% last month. It triggered a letter from Mr King explaining why was above the government's two per cent target. He blamed a weak pound, an increase in food and drink prices and a rise in the cost of petrol.
But the Retail Price Index fell to zero last month, meaning many may facerising food bills but a freeze in pay.
Mr King had created 'a defining moment' in the recession debate, said shadow chancellor George Osborne.
He had put government 'in a very difficult position' said Vince Cable, Lib Dem treasury spokesman. 
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