The same financial problems that have been tracked from bank to bank, from company to company for more than at least seven years, have now found there way into the very heart of our financial system, which continues in dissaray.
It’s clear: our public finances are in an enormous mess. And to some extent, some politicians will admit it. But add in our financial, personal and private debt and an even darker picture emerges.
Compared to the size of our economy, Britain is now one of the most heavily indebted countries in the Western world. That’s official. Our total debts stand at more than six times of what our entire economy is worth.
Proportionally, that’s more debt than Italy, Portugal, Spain and almost twice as much debt as Greece. Those are four countries already in the throes of financial crisis. We’re the odd one out because we haven’t collapsed as yet. But things can’t stay that way for long.
The only countries that have more debt than us are Japan, where the economy has stagnated for 20 years and the stock market has crashed by 75% and Ireland, where the housing market has crashed 50%, and the government has been forced to accept a bailout. It could be said that India bucks these trends, unless you examine the underlying criteria.
That means the most important trend of the next twenty years is almost certainly rising interest rates
We’re now facing an unprecedented crisis. As interest rates rise, our record debts will become impossible to bear. And what will happen to all those that purchased on a buy to let basis?
When these events unfold, very few people will have any idea how to respond. Most will see the assets they have worked all their life begin to lose value, rapidly.
It’s essential you prepare for these events. You can’t rely on mainstream commentators to help you. We need to start real debates around the country to prepare for a new and non speculative system, this is possible and in the interests of us all. And no this is not a scaremongering blog it is simply written to enable us all to see that there are alternatives.