If you're wondering how the 20th century really ends for us in the UK, in about 2015, this seems as plausible a scenario as any
The End Of Britain 4 - MoneyWeek
The whole article is worth a careful read by all those complacent chumps who won't hear of selling off the NHS!
So glad I'll be mortgage free in a month or so, living in a huge turnip of my own in rural Devon
The End Of Britain 4 - MoneyWeek
The whole article is worth a careful read by all those complacent chumps who won't hear of selling off the NHS!
::::
In recorded economic history, every single country with debts as big as ours – every single one – has suffered a devastating economic collapse. There are NO exceptions.
For example…
During the Great Depression – when thousands of ordinary people lost everything – America’s total debt hit 252% of GDP. In any circumstances, that’s bad.
But things can get worse. During the Japanese economic collapse – which triggered more than two decades of deflation and a 75% drop in the stock market – Japanese total debt hit 498% of GDP. That’s twice as bad as the level of debt seen in America during the Great Depression.
If Britain’s current debts were at those kinds of levels, it would be worrying. But in truth, our debts are now much worse than either of those two examples.
Shockingly, our debt load is now on a scale comparable with one of the most frightening economic disasters of the 20th century…
We're talking about the Weimar Republic.
Back then, suffering under the weight of brutal war reparations, civil unrest and shattered public finances, the Weimar Republic’s total debt equalled 913% of its economy.
I’m sure you know what happened next: the government printed money and hyperinflation took off. In the end, it was cheaper to decorate your home with bank notes than wallpaper. Ultimately, the country descended into a period of economic and social crisis… a catastrophe that ended with the rise of the Nazi party.
And that was with debts worth 913% of the economy.
Today, Britain’s total debt equals 900% of the economy.
When you add in our financial sector debt, government debt, personal debt and corporate debts… our debt load rivals the Weimar Republic in scale.
To put it mildly, this worries us a great deal. It should worry you, too. Because this simple fact alone proves just how inevitable Britain’s coming crisis is.
Remember, as you saw earlier the only thing delaying the crisis right now is the fact that interest rates are at historical lows. That’s what allows life to carry on “as normal”.
But things won’t be this way for long.
Because the simple fact is:
When interest rates rise – and they WILL rise – Britain will face the greatest crisis in generations.
:::::
In recorded economic history, every single country with debts as big as ours – every single one – has suffered a devastating economic collapse. There are NO exceptions.
For example…
During the Great Depression – when thousands of ordinary people lost everything – America’s total debt hit 252% of GDP. In any circumstances, that’s bad.
But things can get worse. During the Japanese economic collapse – which triggered more than two decades of deflation and a 75% drop in the stock market – Japanese total debt hit 498% of GDP. That’s twice as bad as the level of debt seen in America during the Great Depression.
If Britain’s current debts were at those kinds of levels, it would be worrying. But in truth, our debts are now much worse than either of those two examples.
Shockingly, our debt load is now on a scale comparable with one of the most frightening economic disasters of the 20th century…
We're talking about the Weimar Republic.
Back then, suffering under the weight of brutal war reparations, civil unrest and shattered public finances, the Weimar Republic’s total debt equalled 913% of its economy.
I’m sure you know what happened next: the government printed money and hyperinflation took off. In the end, it was cheaper to decorate your home with bank notes than wallpaper. Ultimately, the country descended into a period of economic and social crisis… a catastrophe that ended with the rise of the Nazi party.
And that was with debts worth 913% of the economy.
Today, Britain’s total debt equals 900% of the economy.
When you add in our financial sector debt, government debt, personal debt and corporate debts… our debt load rivals the Weimar Republic in scale.
To put it mildly, this worries us a great deal. It should worry you, too. Because this simple fact alone proves just how inevitable Britain’s coming crisis is.
Remember, as you saw earlier the only thing delaying the crisis right now is the fact that interest rates are at historical lows. That’s what allows life to carry on “as normal”.
But things won’t be this way for long.
Because the simple fact is:
When interest rates rise – and they WILL rise – Britain will face the greatest crisis in generations.
:::::
Comment