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British National Debt: Information Please

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From the Jerusalem Post

Unfortunately for the British public, their economy cannot bear this burden because they and their government are already mired in a level of debt that makes the Americans look like paragons of thriftiness.

I thought the British national debt was about 38% of GDP whereas USA's is around 150% GDP. Am I just deluded about this?

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From the Jerusalem Post

Unfortunately for the British public, their economy cannot bear this burden because they and their government are already mired in a level of debt that makes the Americans look like paragons of thriftiness.

I thought the British national debt was about 38% of GDP whereas USA's is around 150% GDP. Am I just deluded about this?

We are the most indebeted nation on the planet and the bulk of our debt is "owned" by the banking system:

http://web.worldbank.org/WBSITE/EXTERNAL/D...1805415,00.html

UK: 10 Trillion $

US: 11.8 Trillion $

US GDP and population many many times bigger than the UK. Per capita we lead the world in debt. Its a miracle you know.

Recent survey showed private debt in the UK also exceeds the US with our debt ratio at 1.67 (or thereabouts) compared with the US at around 1.42. We also lead the EU in credit card debt to the extent that we owe more than the others put together.

If we get rumbled sterling is toast.

Edited by Realistbear

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Thanks Realist Bear, I know what sheeple are like, but I was specifically interested in Government Debt. I thought British Government debt was in pretty good shape by international comparison?

http://www.statistics.gov.uk/cci/nugget.asp?id=206

Between April 2007 and July 2007 of the financial year 2007/08, the public sector recorded a deficit of £4.5 billion. At the same stage of the 2006/07 financial year, a deficit of £3.1 billion had been recorded.
More generally, the public sector recorded deficits between 1991/92 and 1997/98 before moving into surplus in 1998/99.
Deficits have been recorded since 2002/03
.
..../
Net debt was £502.2 billion at the end of July, compared with £471.4 billion a year earlier. The Budget forecast for net debt at the end of March 2008 is £540.0 billion.
Edited by Realistbear

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Guest d23
From the Jerusalem Post

Unfortunately for the British public, their economy cannot bear this burden because they and their government are already mired in a level of debt that makes the Americans look like paragons of thriftiness.

I thought the British national debt was about 38% of GDP whereas USA's is around 150% GDP. Am I just deluded about this?

Public Debt as a % of GDP is 64.7% for the US and 42.2% for the UK

Balance of payments for the US stands @ minus US$862,300 million and the UK @ minus US$57,860 million

central government debt for the US is currently US$9005 billion and the UK £574 billion

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Thanks Realist Bear, I know what sheeple are like, but I was specifically interested in Government Debt. I thought British Government debt was in pretty good shape by international comparison?

G7 Countries, Gross Government debt as % of GDP

Country 2005 (last actual figures)/2007 (IMF)/ 2008 (IMF)

Canada 78.6 70.7 66.5

France 66.7 63.9 63.4

Germany 66.4 66.5 65.9

Italy 106.2 106.0 105.3

Japan 182.9 185.0 184.3

United Kingdom 42.7 43.6 43.7

United States 60.3 60.3 60.6

IMF figures.

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I became interested in the National Debt a few months ago... I'm still far from understanding it - but I have come to the realisation that figures have been massaged in order to make them look better with respect to common statistics.

The first problem with assessing national debt is that it is usually considered in the context of GDP - and, if GDP is supposed to represent *Productivity* then I do not believe the published figures for GDP. For example, in the ONS (Office National Statistics) the "Blue Book" suggests a steady year-on year 5% increase attributable to agriculture.. which flies in the face of the anecdotal evidence I collected speaking to farmers (though I realise this isn't the most reliable way to assess the official figures.) I am far more concerned with the stratospheric explosion in productivity attributable to financial services... not only am I suspicious that such growth is not sustainable, but I wonder if financial service activity is, in fact, a *product* at all.

The next problem I see is with "off balance sheet debt" - and here I refer to such initiatives as PFI. As a hypothetical question - now Northern Rock deposits are underwritten to the tune of £23 billion, how much of that is accounted as government debt?

I was fascinated to peruse both the "pink book" (Balance of Payments) and "blue book" (National Product) published by the National Statistics Office... though I admit freely that I found both publications extremely dense. To be honest, I wonder how many people have actually read them and attempted to understand the contents.

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I became interested in the National Debt a few months ago... I'm still far from understanding it - but I have come to the realisation that figures have been massaged in order to make them look better with respect to common statistics.

The first problem with assessing national debt is that it is usually considered in the context of GDP - and, if GDP is supposed to represent *Productivity* then I do not believe the published figures for GDP. For example, in the ONS (Office National Statistics) the "Blue Book" suggests a steady year-on year 5% increase attributable to agriculture.. which flies in the face of the anecdotal evidence I collected speaking to farmers (though I realise this isn't the most reliable way to assess the official figures.) I am far more concerned with the stratospheric explosion in productivity attributable to financial services... not only am I suspicious that such growth is not sustainable, but I wonder if financial service activity is, in fact, a *product* at all.

The next problem I see is with "off balance sheet debt" - and here I refer to such initiatives as PFI. As a hypothetical question - now Northern Rock deposits are underwritten to the tune of £23 billion, how much of that is accounted as government debt?

I was fascinated to peruse both the "pink book" (Balance of Payments) and "blue book" (National Product) published by the National Statistics Office... though I admit freely that I found both publications extremely dense. To be honest, I wonder how many people have actually read them and attempted to understand the contents.

Don't forget pulic sector pension liabilites.

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