Britain is not bankrupt, for it to be bankrupt we’d have to

Comment on Broken Britain, Broken Society and the BIG Society by David.

Britain is not bankrupt, for it to be bankrupt we’d have to go into receivership or something and not be able to pay back our debts: basically other countries would have to bail us out.

So stop scaremongering about bankrupt Britain, all you are doing is adding negativity to a difficult financial situation. Think about the effects of all this scaremongering in the media is having, foreign investors won’t want to invest in Britain if Britain believes it’s bankrupt!

We are no where near what you’d call bankrupt, even Greece isn’t bankrupt and they are in real trouble financially, but still at a point where with help they can recover.

We don’t need any external help, as long as the next government manages the finances reasonably well (and Labour has done an OK job so far, not great, but OK) we’ll slowly see the debt reduce over time. This will be true of the vast majority of Europe with countries like Greece and Italy struggling far more than countries like Germany, France and the UK where the debt levels relative to GDP (measure of ability to pay) are much lower.

There’s nothing to be gained in having any country go ‘bankrupt’, it damages world trade.

I was watching the news earlier (not sure which channel or who was speaking :-)) a woman who was part of some sort of financial organisation was saying we are nothing like Greece, the biggest risks for us is if the world as a whole starts to look on economies with large government debts (pretty much all the European economies) because of the recession etc… and started to worry about their ability to pay back those debts, (hypothetically) then we along with other European countries would be in trouble and lenders would run away. She also added right now they aren’t running away from us, they are running to us (that’s a good thing).

Another thing that was interesting is our debts are apparently not very old, where as Greece’s debts are much older (and they have new debts). The importance of this is Greece is having to renegotiate old debts as they become due and this causes problems (I’m assuming higher rates of interest?).

Since our debts aren’t old, if things did start to get much worse it would apparently take a lot longer for problems to affect us (we wouldn’t be renegotiating old debt).

Please stop scaremongering like the tabloid newspapers tell you to!

Do some research and you’ll see as long as we don’t slip into a world depression (if we do the entire world will be in the s##t) and the next government acts responsibly, we’ll be fine medium term. We are looking at some very difficult times ahead and none of the main parties are dealing with this before May 6th (I’m sure whoever wins they will deal with it).

We are in for a parliament of massive public sector cuts under the name of efficiency savings! I accept it has to be done, I just hope on May 7th we don’t have a Conservative government who were initially salivating at the prospect of massive public sector cuts in spending!!!!!! At least Labour and the Liberal Democrats don’t want to cut public sector spending, even though they will have to.

David