David Craig, on October 26th, 2023Thursday/Friday blog
Borrow borrow borrow – as if there’s no tomorrow
The UK’s debt is now £2,629,377,653,182. Though it will be a lot higher by the time I finish writing this blog as it’s increasing by over £2,000 every second:
United Kingdom Debt Clock: British National Debt Grow By The Second
Here’s the chart of our national debt as a percentage of GDP:
(left-click on chart, then left-click again to see in glorious widescreen)
Our national GDP is about £2,154,552,486,677. So our debt is more than 122% of GDP. And our interest payments are over £71 billion a year – £2,252 per second. Our debt is equivalent to over £80,000 for every person in employment. And our interest payments are costing every taxpayer over £2,000 a year. I’ll repeat that, each employed person is being forced to pay over £2,000 a year just in debt interest.
I’m no economist. But even I can see that this isn’t healthy.
Ludicrously, I heard some pig-ignorant Tory MP claiming in an interview that the useless, waste-of-skin fake Conservative government was going to reduce our national debt. Clearly this idiot didn’t even understand the difference between deficit and debt. As long as the Government has a deficit – taking in less in tax than it spends – its debt will increase. Duh!
Can Labour be any worse?
When Labour inevitably wins the next election, they will do everything in their power to bankrupt Britain:
- massive increases in public spending especially on our ‘envy-of-the-world’ NHS
- massive tax increases to pay for Labour’s public spending splurge
- wrecking the tiny remnants of British manufacturing with the highest energy prices in the world due to eco-crazed Ed Miliband’s frantic attempts to destroy our country by replacing cheap reliable fossil-fuel electricity with expensive, unreliable supposed ‘renewables’
But the big question is – will the bond markets allow Labour free rein? Labour will need to borrow an awful lot of money to fund its planned public-spending blowout in spite of its inevitable, inexorable tax rises. If the bond markets refuse to lend Labour the money it will need or if the bond markets demand ever higher interest on the money they lend to Labour, then Labour will be stymied in their efforts to bankrupt Britain and we may even find Britain crawling to the IMF for a bailout.
We saw what happened to the brilliant Liz ‘trussed-turkey’ Truss and her even more brilliant chancellor Kwasi ‘Khazi’ Kwarteng when they tried to defy economic gravity. I suspect that Labour’s plans to destroy our country will also hit the brick wall of economic reality. So perhaps Labour will be no worse than the abominably incompetent, useless, lying, fake Tories?
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I doubt that it will be any worse with Labour or any of the other parties if they somehow get elected, or if there is a coalition. Farage last night was claiming PR would solve the problem but I don’t believe that either. There is an even bigger problem which is that the EU and the USA are in similar situations. I keep hearing that China has a lot of debt but haven’t looked into that. The USA is in a better position because it has raw materials. The EU and UK are not in that position which makes it much worse for us. I can see Europe ending in third world conditions.
It can only be solved by two actions. The first and easiest to do is to close the central banks and put money supply in the hands of governments. That will not happen. But the fundamental long term requirement is to take the economy completely out of the hands of the government and let the free competitive market work, as Ayn Rand and others said years ago. That will never happen either.
What will happen is what the WEF has said – we will have nothing. The UK could deal with the debt by devaluing the pound but I don’t see the government doing that unless it is forced on them. It is more likely that the west will try to introduce a new currency which will do the equivalent, but if China and India don’t agree that is not going to work. The world economy has been run as a Ponzi scheme for over 100 years and it must fail. There is no soft outcome which the WEF recognises. I think they are too afraid to implement any change and we will just have to wait for the collapse when we will have nothing. Those with savings will see them vanish and those with mortgage debt will see their property repossessed. The bankers will come out of it well and we will suffer but that is what has always happened. Jesus saw this happening with the money lenders in the temple and look what happened to him. It is not a new problem that we face and it is one created by every state. We need freedom from state control, but that frightens the masses even more.