Commercial banks, the FSA, and New Labour have destroyed this country:
Royal Bank of Scotland and Lloyds TSB, the two banks bailed out by the Government, are to add between £1 trillion and £1.5 trillion to the public debt, the equivalent of between 70 and 100 per cent of GDP, the Office for National Statistics indicated this morning.
Britain’s public sector net debt is already a record high, hitting 47.8 per cent of GDP in January, official figures show. This is the highest level of debt recorded since the ONS started recording data in 1993.
Sure, these banks have assets, but even a modest default rate, will add several percentage points to the public sector debt stock.
Lets's not forget this year's fiscal deficit - 8 percent of GDP. Oh I forgot, no problem here, the Bank of England has that covered. They are going to print some nice pieces of paper, with the queen's picture, and they will use that to cover all these extra government expenditure.