Mainstream media headlines today are focused on Britain’s record national debt, which just surpassed £1 trillion, a figure that can only exponentially increase unless the entire mechanism of Government finance is overhauled. The truth however is much worse, factoring in all liabilities including state and public sector pensions, the real national debt is closer to £4.8 trillion, some £78,000 for every person in the UK.
Nick Silver, Institute of Economic Affairs Fellow and author of the 2010 report said:
“This figure for the national debt of £4.8 trillion may seem incomprehensible. However, it does represent a good estimate of the burden this generation is leaving to the next. It is time that the government properly accounted for pension debt, as any company does. It is important for the government to stop this increase in explicit debt. But the government is also continually incurring further unfunded pension liabilities, which is making the situation worse.”
“Much of the discussion about public spending cuts in the UK is not grounded in reality. The scale of the national debt is substantially worse than acknowledged. Presenting a true picture of the nation’s finances should be a key role of the Office for Budget Responsibility.”
It’s easy to pin the blame on Labour for Britain’s financial mess, but Cameron and Co are still illegally invading countries based on lies (Libya), still pumping money in to expensive and inefficient green bureaucracies, and still handing over our sovereignty to the EU, while paying billions for the privilege.
More importantly the very mechanism of Government finance (borrowing from private institutions and using the people’s tax as collateral, as opposed to using citizen’s tax as a limit on spending), has created a system whereby the people’s wealth is sucked up to the elite classes and used to fund the fascist and imperialist ideologies of our politicians. If that’s not corrected there will never be an end to the austerity. Mathematically it WILL get worse.