- The amount of debt carried by America is way more than that of Greece and UK combined. Something like US$100-200T. When America goes down the financial toilet bowl, the rest of the world will follow. The collapse of the USD is a global event. Its ramifications are not just limited to America. Every single nation will be hit.
Where Greece goes now, we will soon follow
by Christopher Booker, http://www.telegraph.co.uk/
Last week, the deficit on our Government’s annual spending widened yet again, to £143 billion. We cannot avoid a reckoning for ever, warns Christopher Booker.
As their sad, bewildered faces show whenever they appear on our screens, the EU’s leaders have nowhere to turn. They cannot afford to allow Greece to fall out of their beloved euro, which might trigger an international currency crisis, the consequences of which no one can calculate. On the other hand, they cannot afford to continue pouring tens of billions of euros, which will never be repaid, into a basket-case economy. They – and we – are impaled on an impossible hook.
One of the few sources of pleasure in this mess has been to witness the discomfiture of our own homegrown euro-zealots who, a decade or more ago, were obsessively urging Britain to join the lemmings as they set off for that ultimately inevitable cliff. There was no cheerleader louder than the BBC’s Today programme, which back in the late 1990s was almost daily wheeling on the likes of Michael Heseltine, Chris Patten and Leon Brittan to argue, unchallenged, that Britain was doomed unless we signed up.
Last week, of course, Lord Brittan was adamant that Greece must remain in the euro, while observing that the country had brought these problems on itself because it had “simply been spending more than it could possibly afford”. Rather more to the point, one might have thought, was the cover of the latest issue of Private Eye, showing two speech bubbles coming out of the Parthenon. The first said “Massive debts, greedy banks, dodgy politicians, reckless borrowing, cuts, strikes …”. The second agreed: “They should let Britain go bust.”
Far more than most people realise, we in Britain are approaching a financial abyss almost as great as that into which Greece has been falling. Last week, the deficit on our Government’s annual spending widened yet again, to £143 billion, which means that we are having to borrow nearly £3 billion a week. That equates to £5,700 a year for every household.
The BBC continues to prattle on about those terrible “cuts”, as various groups of public sector workers plan the widest series of strikes we have seen since the 1970s. But when did you last hear the BBC tell us that our overall public spending is rising, not falling? When did the Today programme tell us that by the end of the year, our national debt will have soared to £1 trillion, having doubled in six years?
When did it mention that, despite all those closed libraries and care centres, the Government is still having to borrow the equivalent of £100 a week for every household in the land, to pay, inter alia, for the 1,600 employees of the NHS who earn more than the Prime Minister? And that’s not even mentioning the 46 BBC executives who enjoy similar perks, including the £834,000 a year we pay the director-general himself. Forget poor old bankrupt Greece. Here in Britain, too, we ain’t seen nothing yet.