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Ron Delnevo's Blog
Ron Delnevo's Blog
Blogs » Ron Delnevo's Blog

The UK National Debt - Forever?

George Osborne may have been a supporter of "Remain" in the UK EU Referendum BUT, for him, it was surely a win/win situation.

Had the UK sided with Remain, George continues in his job, alongside his great chum David Cameron, ready and waiting to be anointed as Prime Minister, at a time of Dave's choosing.

Clearly, that was 1st prize.

2nd prize?

The UK opts to "Leave" and then George gets to announce that the changes this decision necessitates in relation to his work at  Number 11, mean that it is now impossible for the UK to have a budget surplus by 2020.

So Mr Osborne is able to rip up his austerity agenda, which he has been pushing since 2010 as the only solution to the UK's budgetary woes.

Of course, a budget surplus was only meant to be the first step. A small surplus in 2020 was touted as being the start of a carefully planned process to eliminate the UK National Debt, which now stands at a mind-blowing £1.5 Trillion. With a £100 million budgetary surplus every year from 2021 onwards, the National Debt could have been eliminated by 2036.

So, with a budget surplus now not contemplated, where does that leave the National Debt?

Permanently with us, it seems.

The problem is that the UK government has income of over £600 Billion per annum, yet spends over £700 Billion. By hounding the unemployed, making those on other benefits social outcasts and neglecting the needs of the less-able, the last two UK administrations have, in some years, slightly reduced the budget deficit. To do this, they have thoroughly undermined the foundations of what we used to call "Society".

None of the politicians currently operating anywhere in the UK ( yes, you too, Nicola) seem to have the faintest idea how to reduce the National Debt. Hardly surprising, when even a one year budget surplus is beyond them.

So my message to the politicians is simple. If you cannot eliminate the National Debt, stop talking about it entirely. Treat it like the sun rising, the tide coming in and time passing -  a reality that the UK has to live with, forever.

As for our Creditors, they simply have to be convinced that calling-in the debt the UK owes them is not worthwhile. That is a matter of winning their confidence ( a confidence-trick, if you like) - and therefore much more suited to the talents of our current crop of politicians than the task of eliminating the National Debt. 

 

Sunday, 10th July 2016

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