Posted on 12/05/2009 4:09:01 PM PST by FromLori
Future historians will see that speech – the culmination of a decade of Labour's fiscal incontinence – as the moment when the UK was irrevocably relegated from the world's economic premier league.
Amidst audible gasps in the Commons, Darling revealed the UK's national debt would swell from 37pc to 80pc of GDP by 2014, not including the bank bail-outs. Just 12 months before, he'd claimed that sovereign debt would stay below its 40pc ceiling.
This country would borrow £703bn over the coming five years, Darling announced in April – a head-spinning 62pc more than his estimate five months earlier. Borrowing in 2009/10 alone would total £178bn – five times the annual average during the previous 10 years.
As it turns out, even those estimates were too rosy – seeing as Darling's April numbers relied on the British economy contracting by "only" 3.5pc this year. Yet, as of the third quarter, the UK remains the only major economy still in recession, with GDP set to shrink by 5pc or even more.
Lower growth, or steeper contraction, slashes tax receipts while stoking benefit spending – pulling the national accounts apart. In October, the UK's over-reliance on financial services and the housing market, both of which are struggling, meant revenues were 9.1pc lower than the same month the year before. Expenditure, meanwhile, was 10.3pc higher.
No wonder the UK is set to run a budget deficit of at least 13pc of GDP next year. That's by far the biggest in our peacetime history and also almost twice as high as when Dennis Healey went "cap in hand" to the International Monetary Fund back in 1976, the last time Labour wrecked the UK's finances.
Britain's national debt stock is now on course to hit 100pc of GDP by 2014 – not 80pc as
(Excerpt) Read more at telegraph.co.uk ...
Keynesian economics was the economic ClimateGate of the 20th century.
Related
Britain’s Inflationary Debt Spiral as Bank of England Keeps Expanding Quantitative Easing
http://www.marketoracle.co.uk/Article15521.html
UK ‘faces decades of debt’
Britain faces decades of rising public sector debt, increasing taxes and, potentially, falling living standards unless it tackles the growing costs of its pensions and health bill, the Treasury will warn this week.
Bailing out the banks cost £5,500 per family
Yes I thought it was relevant here too lol and I posted more related links.
At some point, all the worlds powers will need to declare all national debts forgiven and restart.
That is the goal is it not how else would they establish a global currency and a world government aka the new world order.
Yeah, I know. It drives me nuts that they have been able to wreck economies. When there is only one currency and government, where do those godless globalist turn when things go bad? Where do the people turn?
Of course the other option is to 1) Reign in public spending, and 2) Get rid of the national banks then 3)Introduct competiton (or a gold/silver standard) back into the monetary system. If THIS happens in at least 1 Major 1st world country then the NWO will fail becuase everyone will go to this nation (and their “solid” $$$$) as the safe haven!~ Let’s hope it is us. (Though I know NWO is inevitable eventually as it is predicted in the Bible)~!
J.S.
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