Extra debt £25,000 per head, that’s per man. woman and child in the UK.
The Office of National statistics has announced that the National Debt has increased by £1.5 trillion pounds caused by the losses made by RBS, HBOS and Northern Rock. The national debt was previously £865 billion and that was bad enough.
£1.5 trillion pounds divided by the total population of 60 million means £25,000 per man, woman and child.
Compare that with our average salary of £26,000. So we worked all last year and the bankers took ALL our money for that year. But worse than that our total salary costs come to less than £600 billion, so the loss for tax payers was actually two and half years earnings. The total GDP for the UK was itself £1.5 trillion pounds – all totally wiped out.
Currently the total domestic debt is estimated at £1.6 – £2.0 trillion, (that’s the personal debt each person carries, on average.)
So that’s £1.6 trillion of our own debts, £.865 trillion existing national debt with a further £1.5 trillion for the banks, shall we call it £4 trillion to keep it in round numbers. and our government is currently spending more, far beyond its income, a further £560 billion this year alone.
So what, you ask?
Well, in 1968 when I started working, let’s say the pound was worth a pound, then the same pound today is worth only 7p.
That’s how much the mistakes and incompetence of the governments (and the media and the unions and the civil service plus the demands for free services from us all) of the last forty years have cost us, even though the North Sea oilfields brought in a bonus of, say, £3 trillion (in today’s pounds.)
No wonder the rest of the world finds us cheap and we find the rest of the world expensive, just think what each of your pounds could do if it was worth £14.25
Does it matter?
YES, because everything we want to buy from abroad is now more expensive, up twenty per cent just in the last year and forecast to soar away for future years.
So what do we do about it?
May I suggest:-
1. If the bankers want to gamble with our money, then they need to share their winnings with us, we’ve had to take the losses so we want some of the future winnings, I think an interest rate of 8% per month (paid monthly and compounded) so we get our investment back in under a year. For these there would be no depositor guarantee. For those banks who set up a separate bank under different ownership for the purpose of direct mortgage lending and corporate lending, our normal domestic banks, then a more normal interest rate of 2-3% may be appropriate. Depositors will get a guarantee of £50,000 but only one guarantee per person.
2. Again the public sector needs to become even more effective because we just can’t afford them. The median, that’s the most common, salary cost in the NHS, is just over £50,000 per year.
3. We need to stop buying things abroad, therefore the coverage of public transport needs to be dramatically improved so that we can reduce the bills for oil, gas, petrol and diesel.
4. We need to take inflation out of all contracts, so that we all suffer the same, and
5. We need more land so that we can produce more of our own food.