MoneyWeek, the UK’s best selling financial magazine, has issued a stark warning about the state of Britain’s finances in an bulletin entitled “The End of Britain“.
The long article is designed to advertise MoneyWeek’s ‘Money Preservation Report’, but UKIP Daily recommends reading the entirety of it regardless, as it details the enormity of our debt crisis and the fallout that will ensue.
Britain now owes five times the total worth of our economy, but how did we get to this state? For a start, our ‘austerity drive’ is no such thing, as MoneyWeek explains:
“Despite David Cameron’s talk of “austerity”, he’s going to add an estimated £700 billion to the national debt in just five years. That’s more than Tony Blair and Gordon Brown added to the national debt in eleven years. It’s more than every British government of the past 100 years put together.
“The fact is, when you look at our finances as a whole, the Coalition isn’t cutting anything. State spending is going up… our national debt is going up… and our interest payments are going up.
“By the next general election in 2015, our national debt is estimated to stand at almost £1.4 trillion”
And the £1.4 trillion only encompasses current debts, it doesn’t include future liabilities, such as the pensions of people who are currently working.
If you’re in your 20s, 30s or 40s, forget having to work two or three years longer before being able to claim your pension – chances are you won’t be getting anything at all.
If the MoneyWeek team are predicting correctly, what we’re seeing is the experience of the Weimar Republic replayed in Britain. As they point out, the Weimar Republic’s total debt equalled 913% of its economy. The fallout from that crash gave rise to the Nazi Party. Britain’s debt currently stands at 900%, not counting liabilities.
And if that doesn’t scare you, nothing will.