So when I see our wonderful government claiming things are getting better and I KNOW THEY AREN’T, I tend to dig a bit deeper.
In 2010 the Conservatives (Tories) came into power.
The national debt at that time was £0.76 Trillion.
Today I read in the BBC that the national debt is £1.4 Trillion and rising. I also read that the UK’s Chancellor (Osborne) is claiming that he is well on the way to balancing the country’s books.
Except that ain’t quite true (even though it is an election year).
Overall public sector debt rose to £1.586 Trillion, the equivalent of 86% of Britain’s GDP.
That’s £86.1 billion pounds higher than a year earlier.
Now call me old-fashioned but if you actually owe more this year than last year, how are things improving?
Will it crash soon then?
Nope, well hopefully not until after the election and even then it depends who gets into power. Look at the US. They owe so much more but are still claiming everything is rosy.
After that we are keeping an eye on the dangers coming from:-
- The EU which is currently in peril due to the Ukraine and NATO. My feeling is that if NATO start a punch up with Russia, national debt won’t be an issue anymore as WW3 might take over as my number one worry.
- The Euro due to a disorderly Greece GREXIT. If it does happen, the common consensus is that other weak performing EU countries will also pull out of the Euro and that will collapse. Ultimately that will impact on the UK and us (at the bottom of the food chain) as prices for goods will rise.
- BRICS and the rapid world events that are taking the USD out of the slot as the number one currency. That will affect the GBP as it and the Euro are all linked inexorably with the fate of the dollar. Again prices will rise, we lose out.
- Generally the UK is causing concern as is building up to another ‘credit bust’ scenario again much like it was in 2007. Only this fall will be epic in its effect and the buzz phrase “bank bail in” is causing me to shudder whenever I think about it.
In the end money is what we need to survive and currently it is in short supply with us and looking increasingly volatile.
Worse case scenario?
We may be forced to sell up and move to somewhere warmer as it may be better to starve to death in the warm than the cold of a UK winter not being able to afford to heat and eat.