British debts and deficits - worse than Greece

[Skybird]

With some surprise I read this week that Great Britain is in an economica and finacial situation that mybe is worse and more threatening than that of currently much discussed Greece. I did not know much, if anything, abiut British economy, and followed the dramatic news about Greece, I know a bit about the basic figures of Japan and America, and I wonder why currently everyone in the Euro-Zone speaks about Greece, while Italy's situation maybe is much more threatening, with Spain and Portugal close on it'S heels, and Iceland, also in a dramatic conditions, wants to contribute to Euroland's misery by now joining the currency.

Our Western nations - are bubble-countries. And the bubbles, one by one, set to burst.

Add this to the growing economic pressure from Asia, collapsing social systems due to misled migration policies, the complex issue of oil, and you should start to feel worried if there still is some sanity and life left in that body of yours. The design of our countries, their financial, social, economic structure, seem to be unfit to survive the storm ahead.

http://www.telegraph.co.uk/finance/f...rld-table.html

Britain has one of the worst deficits as a percentage of GDP in the world, according to OECD figures. Only Iceland and Greece have higher deficits and experts fear it could overtake Greece. Here is a table of how the UK compares with other nations.


Deficit as a % of GDP

Iceland 15.7
Greece 12.7
Britain 12.6
Ireland 12.2
United States 11.2
Spain 9.6
France 8.2
Japan 7.4
Portugal 6.7
Canada 4.8
Australia 4
Germany 3.2


* Figures from OCED forecast in November 2009.

Of Britain's deficit, Ross Walker, chief economist at RBS, said: "What do you expect when you run a deficit even during the boom years."

German paper Die Welt writes that this year analysts expect the kingdom to reach debts equal to 80% of the GDP. that just covers the public sector - if credits and economy are included, Britain'S debt level will be at 460% of the GDP this year. that is the second place behind world record holder Japan with 485% of their GDP. Rating agencies like ING, S&P and BCA now threaten to lower the credit rating of England. But if it loses it's triple-A rating, this will further effect the pound Sterling, which already is under pressure from what analysts of rating agencies see as signs of a stagflation- not as a slow economic recovery. they say the Pound could loose up to 30% of it's current value. which brings a rat-tail of other problems.

It seems to me we are sitting in a ship, and more and more small little holes open in the hull everywhere, and become bigger, and nobody knows how to stop that process. And the command has been given to send the band on deck and let it play.

Get your towels ready. We're going down - and it will be a wet trip.

Meanwhile speculants as well as some governments try to trick the German government into bailing out the Greeks - ignoring the background that this would violate the rules of the stability pact (that'S why some constitution experts already recommended parties and politicians to sue the government at the Constitutional High Court if they try to directly or indirectly give German taxes to Greece) that forbids any such aid as a safety to enforce a minimum stability of the Euro currency. Any such paments are not only illegal by EU treaties (although I admit the EU has a solid record now to break it's own rules if it is opportune), but is money that is payed by Germany increasing it's own debts. Additionally, they alrerady have big strikes in Greece against planned cuts in spendings, and the latest report of Transparency International says that in mean values every Greek last year has payed 1374 euros in briberies to speed up the bureaucratic procedures of the state'S bureaus and services. For doctors, lawyers and and banks, the mean per head "fakelaki" even was higher, with 1671 Euro. Almost 14% of Greeks being asked said that they had been demanded to pay briberies. How many even offer it voluntarily to get what they want or to get it faster, is not known - probbaly more than 14%. 787 million euros in "fakelaki" have been payed in 2008, that is a rise of 23% over the past 2 years.

http://www.transparency.de/Tabellari...ng.1526.0.html

I fear that the financially stronger, a - little - bit healthier nations in Euroland will allow to get pulled won by countries like Greece, Spain, Portugal, Italy in a suicidal attempt to continue selling the euro as a success story. I more and mroe see it as a nother nail in europe's coffin, but maybe I will be thankful for it: if the collpase of the Euro eventually becomes the startinging gun for the collapse of the EU itself.

In any case, we will get wet, this way or the other.