Thursday, March 4, 2010
The view on the UK from the outside
â€œIn Europe, the average deficit is about 6 percent of G.D.P. and in the U.K. itâ€™s 12 percentâ€ the overall level of debt in Britain is the second-largest in the world, after Japanâ€™s, at 380 percent of the countryâ€™s gross domestic product. a huge bond-buying program undertaken by the Bank of England â€” proportionally, the largest in the world â€” that has kept mortgage rates and gilt yields at unusually low levels. That means the government and its citizens have been able to continue to borrow at interest rates that do not reflect their true financial situation. British household debt is now 170 percent of overall annual income, compared with 130 percent in the United States.