Posted by: aboutalbion | March 22, 2013

Debt weight

I take no pleasure in seeing the agony of the people of Cyprus as the country faces the reality of possible national bankruptcy.  Apparently, the government of Cyprus have to raise the equivalent of around £5B from their own citizens in order to release further external EU rescue funds and to avoid bankruptcy.  And nobody wants to vote to make a financial sacrifice.

It might be that events in Cyprus will act as a parable to awaken sleeping consciences in the UK.  For official figures published this week suggest that the UK public purse  continues to spend more than it receives – by an amount that is currently around £120B.  The UK national debt is over £1T at the moment and rising.  Some say that economic growth (by any means) is ‘the answer’, but others reply that people are reluctant to make ‘goods’ that other people are unable or unwilling to buy.

The situation in Cyprus shows that it really is possible for a country to be faced with collapse under the weight of its own national debt.

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