In all of recorded history up to January 2009, the UK accrued a national debt of £708billion. That took everything bad in our entire history to achieve: WWI, WWII, coping with the 1930's depression, the 1970's disaster and IMF bailout, everything.
In one additional year, 2009, this national debt has been extended to £848.5billion — an increase of 19.84% in one year. That is quite some achievement right there. Worse still, it is still growing and our beloved government have no intention of doing anything else but extend it further.
Unfortunately, this debt is now so massive that it is wholely unpayable. At least, it will be unpayable without devaluing the Pound further through more Quantitative Easing. Upcoming new Gilt issues will once again be bought with more freshly-printed money (just like last year) — they will have to be, because the Chinese, Japanese and Arabs are the only people with that kind of money to invest, and they have certainly not been buying our bonds (they're selling). In fact, they all have their own domestic problems to direct their massive foreign exchange reserves at just now. Just about the only party buying Gilts for the last year or so has been the Bank of England, with QE money it had printed specially for just that purpose. Who will buy now, while QE has been "suspended" by the BoE? Meanwhile, Gordon has plans to continue spending like there is no tomorrow.
Gordon Brown will still stand up with a straight face and tell the world that Labour have done the right thing and will continue to do more of the same [for just as long as they can get away with it]. He has bankrupted us one and all.
What a disaster awaits us. Thanks, Gordon. :-(
Thursday, 18 February 2010
We are SO screwed in the UK
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