( A three minute read)
Brexit negotiations are about to restart and we just witness the collapse of one of the UK biggest private companies.
Although few people yet realize it, the UK is bankrupt:
The Government cannot pay its debts nor will it be able to pay for its departure from the EU unless it get an extended transition period, even then it will be on HP terms.
Unfortunately, the Government’s official debt is not the real problem:
The Government’s ‘official’ debt is only a small percentage of its true debt exposure. The official debt is merely the tip of a very large hidden iceberg.
The Government’s true debt is the present value of all the commitments it has entered into, on the expectation that these commitments will be paid for by future taxpayers.
One recent estimate suggested that a UK citizen born in 2011 will inherit, on birth, a debt of perhaps £200,000, and it could easily be much more.
It is simply inconceivable that debts on this scale will be paid off in full.
Nor will they be.
These were not debts that youngsters freely took on, but obligations incurred on their behalf in many cases before they were even born.
The moral question of course is:
At what point does the debt become so large that future children will be born into a new form of slavery, entering the world shackled by the debts of their forbears?
The whole political system is creating a huge intergenerational Ponzi scheme, passing the buck from one generation to the next, until the whole rotten system inevitably collapses under its accumulated weight.
With the collapse of Carillion the government is losing all control of its finances and will once again end up printing money to pay off its debts, so leading to hyperinflation and economic collapse.
the actions are both immoral and reckless with crippling liabilities on top of the national debt, two-thirds of which is made up of “unsustainable” public sector retirement monies.
Overall, the real cost of debt to every man, woman and child in the UK is £53,822 each or over a £100,00 if you are graduating University student.
Since the global financial crisis erupted in 2007. The Bank Of England has pumped £445bn electronic money into the economy, by what is called quantitative easing programme
Public sector pensions are a ticking debt bomb with around £1.3trillion needed to cover 93 per cent of the benefits that are currently unfunded.
Britain ‘set for BANKRUPTCY amid £1.85 trillion of hidden debt’
Future generations will inherit a bankrupt country, with two new worthless aircraft carriers, an unusable nuclear deterrent, a high-speed rail system going nowhere, a health service in tatters, a broken up UK, a State funereal that going to cost millions, a pound that worth toilet paper, etc
Make no mistake about it: The country is bankrupt.
Benefits across the board will be cut, massively: the government will renege big-time on many of its commitments, breaking its health, pensions and other promises on a huge scale.
The social and economic consequences don’t bear thinking about.
The cost of Brexit by now should be apparent with a loss of £350m a week to the UK economy.
If you asked me Brexit is far from inevitable.
The collective failure of the English to understand that in a world driven by technology there is no such thing as Sovereign.
The whole fabric of England is at the moment jeopardize.
There are still fifteen months until Britain departs.
I am convinced that the British people provided they are provided with a credible and ambitious social plan that recognizes that the balance of advantages lies in continued EU Membership.
Through humility and what is called cop on. A new settlement addressing Britain’s inequalities and the EU need to reform can be achieved.
I can hear the outs saying look at Greece.
The Greek government, which faces more debt repayment deadlines this summer, said it was hoping for a “positive conclusion” to the protracted review of its bailout programme. It has lost more than 25% of its GDP – the biggest downturn to be experienced by an advanced western economy in peacetime – since its financial collapse seven years ago.
So England can rest assured that Brexit will have ‘Grexit’ for company. A debt payment of €7 billion is due in July.
Or Greece could just default out of the euro zone.
Stranger things have happened: Before the term “Brexit” was invented, “Grexit” was the far better-known word — and the more plausible scenario.
All Human comments appreciated. All like clicks chucked in the bin.