The UK Economy… off a cliff
Posted by Martin Poulter on 27 May 2009
“It’s finished” is a long, depressing but well-explained essay about where the financial crisis has got us.
That means tax rises, a near total freeze on government spending, swingeing public-sector job cuts, companies laying off every worker they can to save costs, and a dramatic upward spike in unemployment. […] [W]e in Britain are, to use a technical economic term, screwed. […]
It is possible that we are on course for the worst-case scenario. That would involve all our big, TBTF banks turning out to be insolvent, with the result that their balance sheets go onto the public debt. If that were to happen, Britain itself could become insolvent. Countries do go broke. […]
I get the strong impression, talking to people, that the penny hasn’t fully dropped. As the ultra-bleak condition of our finances becomes more and more apparent people are going to ask increasingly angry questions about how we got into this predicament.