Manchy
10-15-2009, 05:25 AM
Instead of cutting services the UK has plunged into the USA model of printing money. This always ends badly for any country that tries to solve a debt problem by creating more. Welcome to hell.
http://www.independent.co.uk/news/business/news/eu-warns-uks-debt-is-unsustainable-1802774.html
A damning report by the European Commission on the long-term prospects for Britain's public finances warns that Britain is at "high risk" of running unsustainable debts – implying that the nation will be unable to service its debts and that only default or high inflation can relieve the burden.
The Commission's 2009 Sustainability Report says that Britain will suffer a "sustainability gap" of 12.4 per cent of GDP – meaning tax rises or spending cuts amounting to close to £200bn a year.
The Commission says the black hole in the British public finances is far higher than the EU average of 6.5 per cent. It implies that, as Britain's population ages and makes increasing demands on the NHS and state pensions, governments will have to make even more painful decisions on public services and taxation in the decades ahead than so far envisaged. The Chancellor, Alistair Darling, currently plans a tightening of 6.4 per cent of GDP by 2017. The Commission's time horizon stretches to the middle of the century.
http://www.independent.co.uk/news/business/news/eu-warns-uks-debt-is-unsustainable-1802774.html
A damning report by the European Commission on the long-term prospects for Britain's public finances warns that Britain is at "high risk" of running unsustainable debts – implying that the nation will be unable to service its debts and that only default or high inflation can relieve the burden.
The Commission's 2009 Sustainability Report says that Britain will suffer a "sustainability gap" of 12.4 per cent of GDP – meaning tax rises or spending cuts amounting to close to £200bn a year.
The Commission says the black hole in the British public finances is far higher than the EU average of 6.5 per cent. It implies that, as Britain's population ages and makes increasing demands on the NHS and state pensions, governments will have to make even more painful decisions on public services and taxation in the decades ahead than so far envisaged. The Chancellor, Alistair Darling, currently plans a tightening of 6.4 per cent of GDP by 2017. The Commission's time horizon stretches to the middle of the century.