George Osborne (ex Goldman Sachs) is in a powerful position in England.
He is a politician before he is an economist, therefore a hypocrite first and foremost, however the term ‘economist’ these days is a term for a fool. The Chancellor of the Exchequer who finds it quite easy to spend tax monies on aircraft carriers, nuclear reactors, high-speed trains, wind turbines, science parks, garden bridges etcetera etcetera ad nauseam…… wearing his economist hat as chairman for his “commission for the reduction of the national debt” is himself…..
The UK debt, that the government has been accumulating over the past decade, are at a ridiculous and tenuous level. Unaffordable….
Osborne, a charlatan at best and economist at his worst states that the debt must be reduced.
It will be, at the constituents expense…. savings, retirement plans and investments will be targeted. No ‘Get out of Jail Free card’ for the constituents of Britain.
Tonight is the night when Osborne will slip up, big time….in fact he has slipped up already if one looks at the national debt figures.
Chart borrowed from Daily Reckoning, kiss kiss hug hug (in other words don’t sue me, attribute given.)
Please note that the ‘national debt’ figure does not include some very important figures…I have commented on some of these figures in a prior blog and may be repeating myself but it is a staggering sum of money…
Depression is Coming
Let’s talk about debt shit
Look I kid you not, if you have not read these articles then do so, they are the basis of what is happening now around the world.
Now Osborne and Britain.
First the money the government had to borrow to bail out the banks in the financial crisis of 2008, the £900 billion it cost to pay for the mistakes of financiers who gambled with the economy and lost doesn’t count towards the national debt.
The British government accountants choose not to include this sum in the national debt, but when you add this vast obligation back in, the national debt spirals to £2.2 trillion (that’s £2,200,000,000,000), or 130% of our national output. . .
So now do you get it?
Try the second omission in the national debt..
People seem to ignore the actual amount of debt Great Britain has amassed and their stupid financial policies introduced initially by John Major to construct infrastructure and supported by subsequent Governments.
This is ignoring this deferred debt and interest, then again what is GBP £5 billion black hole, against the £2.2 trillion black hole?
Like WTF … This is a staggering sum of money…. Regret that Britain and the British people are well and truly f&cked…
Anyway tonight’s the night Osborne the ever reliable ex Goldman Sachs, Chancellor of the Exchequer and politician .. oops forgot and ‘the’ economist will have to address these problems… waive debt?
Not a bad plan Georgie Boy, has been done in the past but bugger thy neighbor …. good bye GBP…
Yes shorting the GBP will no doubt bring a nice surprise …last thing those with money would even think about …. Go long USD to GBP (that is to say long USD and short GBP)…look for the cheap cost and watch what happens over the next 6 months.
Note …this is not investment advice, anyone that contemplates such a move (like me) does so at their own friggin risk….that my friends is the big disclaimer…do so at your own risk.
Britain is essentially mortgaged to the hilt.
They are sinking under a mountain of debt. Oh and the interest bill on this huge friggin debt, by the Government itself, calculated to be in excess of £70 billion by 2017.
Hehe… Mamma Mia where are they going to get the money for that?
That’s equivalent of the UK entire Defence and Education budgets… put together.
Georgie Boy, you don’t have to be an economics graduate to see Britain is flat broke.
Oh and on debt waiver, the Central banks that have deployed QE say that this is not a threat, what do they know?
In reality their rationale is that they will reverse the policy in time, by selling their bonds back to investors. This would drain the money from the system and damp down the risk of inflation.
Well good plan, who wants to buy zero or negative bonds?
So expect something different, Maybe cancel the debt instead, it would mark a major deviation from that plan, as they already have exceeded QE rationale, but this action would set a dangerous precedent.
But they wouldn’t do that, though, would they?
Funding government borrowing by printing money is known as debt monetisation.
It has been tried before, in Germany in the early 1920s, for example, or more recently in Zimbabwe.
It tends not to end well.
In extreme cases, the value of currency declines rapidly towards zero. As it does, more and more of that currency is needed to buy things.
You get hyperinflation. But that only happens when Government confidence is lost completely….. so the one thing that will happen with the GBP is the adjustment to its value, as perceived by those that have control of large swathes of investment capital, move the monies elsewhere….
Wayne’s World economics, the only thing that really and truly makes sense.