I was just looking at an article on Motley Fool, and it doesn't make happy reading. It shows how the chancellor's "economic miracle" has been nothing more than one long borrowing binge. People are increasing their debt just to stand still, which is clearly unsustainable. What about this:
On top of this, the UK is increasing its debt due to an increasing balance of trade deficit. Thank you New Labour.
I cannot see how this lot can be put right in a controlled way. I think a painful crash is inevitable.
- Our non-mortgage debt is increasing by 11% per year (from £80 billion in 1997 to 190 billion today).
- Our mortgage debt is increasing by 12.7% a year (from £827 billion in 2004 to £932 billion today).
- Non-mortgage housing expenses (particularly council tax) are increasing by 6% a year.
- Our wages haven't increased by anything like these amounts - we are spending 10% more than we earn.
- UK growth is going down, so the Chancellor must raise taxes somehow.
- Unemployment has now risen for the seventh month in a row.
- We are not saving nearly enough for a rainy day or for retirement. We are miles short and can never make it up. 55% of working age adults have no pension.
On top of this, the UK is increasing its debt due to an increasing balance of trade deficit. Thank you New Labour.
I cannot see how this lot can be put right in a controlled way. I think a painful crash is inevitable.
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