Wednesday, April 22, 2009

Borrowing our way to total financial ruin

According to today's budget, public sector debt will reach 91 percent of GDP by 2014. It will take at least a generation to clean up this mess.


  1. Interesting - Darling seemed to imply he'd have the debt halved by the same sort of time. ( OK I only heard 3/4 of his speech a few hours ago, so perhaps I have this wrong. )

    Did he mean amount newly borrowed each year halved ?

    Who's going to be fool enough to lend this to us, knowing that what we don't borrow we'll print - thereby defrauding those who did lend ?

  2. some countries are have been having it much higher for a long time, and theyve been living with it so far...
    (italy, japan....)
    if that debt can be repaid someday, its ok

  3. As long as we admit that it's abysmal, it's fine, but Darling seems to think they'll be some miraculous upturn out of nowhere. Certainly not from what he proposed today (in effect, to do sod-all)

  4. It was so unnecessary. And what have we to show for it ??? Rip off railways, pot holes and chavs.

    It's not ok.

  5. How long before one of his measures gets changed/abandoned?

  6. Cool Britannia was a cruel joke.....

  7. You are correct, it will require at least a generation to clean up, if we begin now.

    Our children (and theirs) will curse our memories for this behaviour.

  8. Where do you get 91% from?

    The figure the Treasury gave was 79%.