UK Debt reaches new record
The government funded Office for National Statistics are out today with the latest breakdown of the Government’s finances – and once again they make for grim reading for anyone left who cares about fiscal sanity.
The thing that jumps out is that the ‘official’ (the unofficial is way more than double) debt:GDP in the UK just hit a new record of 62.6%. The total debt now stands at £966.8bn – it now seems certain that the UK will rack up a trillion pounds worth of debt very early in the new year.
From the report:
And how does that compare with a year ago?
UK debt at a record:
And the ‘unofficial’ debt stands at a eye-watering 147.6%:
It’s worth remembering that when the Tories and Lib-Dems formed the UK government back in May 2010 they did so on a platform that the UK had to get its debt problem under control and that ‘austerity’ was needed for the country to achieve that.
Back in May 2010 the UK’s debt to GDP was 53.7. The Tories have now grown that debt to 62.6% – that is a 16% increase in the UK debt in just 16 months.
The borrowing total for September was a whopping £14.1bn. This number was met by cheers of ‘less than expected’ by most media outlets so perhaps its worth while putting that £14.1bn figure in perspective for you.
At the current run rate the government will borrow about £125bn this year. Back in 2008 when the then Chancellor, Alistair Darling released his budget, he estimated that he would borrow ‘just’ £27bn if he was still in power in 2011.
Or to put it another way Osborne, you know, the ‘austere’ chancellor is on course to borrow a mind-boggoling 362% more than Darling was budgeting to borrow in 2011 just back in 2008. Something we laid out fully in “Repeat after us: there has been no ‘austerity’ in the UK”
Don’t listen to any media cheers that this report is in any way good. Borrowing maybe be down at the margins, but the point is they are down slightly from such unsustainable levels as to be meaningless – the report shows that it’s just more of the same and the UK’s finances are a fiscal train-wreck in the making.
Put simply there has been absolutely no serious effort to get the UK debt down and the way the debts of the UK will be paid for is simply through the Bank of England printing up funny money and devaluing the pound.
Link to this article: : http://www.goldmadesimplenews.com/gold/uk-debt-reaches-new-record-5506/