Friday, 30 April 2010
PFI (all the schools and hospitals you see being built) - adds a further 20% (150b) to the total
public sector pensions, for which the government is liable, amount to around....780b
How much private sector output is based on public sector spending? I reckon around 20-30%
Mervin King has made it clear he thinks we're in for a shocking 5 year period.
Ask any vaguely credible financier and they will agree (I happen to have 2 friends who head up the research departments of 2 of the world's major investment banks and they believe the same).
This country is bankrupt.
Any talk of any sort of sustained "recovery" is utter nonesense.
In the near future, perhaps as early as the next 18 months.....
As the government slashes at public spending (as the Greeks are doing), in a desperate attempt to maintain their credit worthiness and international credibility, standards of living are going to fall faster than at any time since industrialisation.
Employment is going to rise to levels we have never before experienced and public order is going to become a major issue.
There is no rational argument you can put agianst this hypothesis.
And we haven't even touched on the price of oil.......
Downsize your house, pay off debt, learn a trade and start to think about how you will live on 30% of what you currently earn.
Its the only logical thing to do....