LONDON (Commodity Online): With the world focusing on the European debt crisis and the slowing US economy, many seem to have forgotten or rather overlooked the once British Empire. The UK debt is now nearing 1000% of its GDP!
The chart below shows countries/regions by their GDP to debt ratio. The US is near 440% and Europe is near 500%. But England is at 950%.
UK's government and household debts are small in comparison to the overall debt while financial debt alone accounts for a massive 60% of these total debts.
In simple terms, for every $1 it produces, the United Kingdom now owes nearly $10. And more debt has to be taken in order to keep the economy running- an economy that is producing less and less with each passing quarter.
No wonder France suggested investors to shift their focus to Britain. ‘‘They should start by degrading the United Kingdom, which has greater deficits, as much debt, more inflation and less growth than us”, French central bank governor Christian Noyer said.
