Saturday, September 5, 2009
We are bust irrespective of the banks
UK debt in terms of properly measured liabilities was 274% GDP as of Nov 2008 essentially because of pensions. There are intermittent articles on our pension "timebomb" but this is an easy to understand (not economicese) explanation of how stuffed we actually are. The conclusion, "introduction of austerity measures; it will be forced to cut spending, increase taxes, possibly print money, and almost certainly look to break its pensions promises." doesn't bode all that well and explains the reticence gov. ministers show to immigration overhaul. This is particularly gloomy because the noose continues to tighten for the next 25 years i.e. if you are an innocent 39 year old, you get robbed blind.