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Profligate Governments Or Profligate Peoples

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The meme currently being put around is that all the western worlds financial problems are down to excessive public spending and that the only solution is cuts and austerity stretching to infinity.

Naked Capitalism has an interesting article today pointing out that the prudent Germans actually owe more in private debt than the supposedly profligate Greeks


Whatever the merits of the Greek and German comparison I found the attached Bloomberg graph particularly interesting for its breakdown of UK debt which rather gives the lie to the claim that it is public sector debt alone that is sinking the UK economy and that reducing it will solve all our woes. In particular it makes me wonder what impact the governments proposed hairshirt for the nation will have on private debt levels going forward. Could it not be that Osborne is setting up another round of the deflation cycle. If so what will he do if his treatment fails to cure the patient and the economy continues to shrink leading to a continuing downward pressure on tax revenues


Edited by realcrookswearsuits
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  • 444 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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