At the moment, all areas of Britain are engulfed in debt − banks, government and people. The whole nation is being slowly strangled by it. Our national debt alone stands at a frightening £400 billion. But that figure – in itself abnormally high – is a drop in the ocean compared with the collective indebtedness of the banks now under effective government control. This is hardly breaking news, but what the Government is doing about it what should really alarm us.
Already another £250 billion of taxpayer’s money – YOUR money – has been pledged to prop up our failing banks. But it doesn’t seem to be working. Banks still refuse to lend. Everything’s ground to a halt. Shops are closing… there’s hardly any job vacancies… unemployment is surging... property values are falling...and at the same time, Britain’s debt curve is no longer a curve – it’s going straight up.
Why should this concern you? Your investments? Your retirement? Your savings? Very soon, every pound you have could be worth much less than it is at the moment. It’s no longer difficult to imagine the national debt doubling or even tripling as the banking crisis persists.
If the UK is moved to nationalise more – or even ALL – of our banks... in one swoop it will dump another £4 TRILLION of debt on to the country’s balance sheet. It’s just about impossible for us to imagine what those figures mean… but think of it this way… Even if just a tiny percentage of those debts went bad due to recession... the financial burden on each and every one of us would be unthinkable...
The Government will probably do one of two things, (or even both) to avoid this outcome:
1) Drastically hike up taxes to pay for the hefty debt burden... meaning LESS money in the bank for hardworking Britons...
2) Or print more money... sending inflation rocketing and sterling into meltdown.
The last time we were this close to going bankrupt was in 1976...
Back then the Government only warded off an utter collapse of the entire economy by going begging to the International Monetary Fund for an emergency “bailout” loan. The following years were some of the worst in British economic history. Inflation soared... poverty skyrocketed... and every household in the UK was poorer for years to come. At most, we’re on the brink of repeating one of these scenarios, if not all three. It’s a potential timebomb that could explode in our faces at any moment.
You and your family’s standard of living is already squeezed by this recession. And if it hasn’t been yet, it could be very soon. Those are some of the facts --£154 million gets added to UK debt every 24 hours, over 1,400 are made unemployed, and the average house price has dropped by £100 every day since December 2007.
How much money can a society borrow before it begins to have negative effects on our ability to borrow any more? When you get to the point that people won’t loan you any more money as a government, you’ve got a horrendous problem.
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