The recently published ONS info shows that after Q1 "2010 general government debt was £1000.4 billion, equivalent to 71.3 per cent of GDP." So, that's the good news; unfortunately official figures understate the UK government's real debts:
"By the time you've added in unfunded public sector pensions, accrued unfunded state pension liabilities, PFI, Network Rail, etc etc, the real National Debt stands at over £5 trillion. And that's without counting the liabilities of our bailed out nationalised banks, which currently stand at around £2.5 trillion."So, around SEVEN TRILLION, give or take a few bob. BOM: "How can we ever escape?"
2 comments:
"Now given that our entire annual GDP is only around £1.5 trillion, the government has amassed debts of 4-6 times our annual income. You try borrowing that kind of multiple from your friendly high street bank - they'd laugh at you, knowing you would never ever be able to pay it off."
Unfortunately back in the real world banks were lending 6 times annual income, that's why part of the huge national debt is down to bailing out profligate banks!
Indeed! Good point and odd that none of the comments on the BOM blogpost pick up on it...it even occured to me (!!!) the way that line was written especially when it was widely known that some banks were lending 6x.
Post a Comment