Sinking in debt

Published on Thursday 2 July 2009 20:51

An interesting test for the European Central Bank will be to see if it will actually bail out a bankrupt EU member state, for it is to their door that Britain is almost certainly heading.

Twelve years of economic ineptitude have brought Britain to its knees, from which position Prime Minister Gordon Brown continues to parrot that public sector spending must be maintained in a recession.

A report from the British-North American Committee calculates that the true future cost of gold-plated pensions for this vast public sector is 1.2 trillion – 85 per cent of Britain's GDP, or 20,000 today for every man, woman and child. It's enough to sink us on its own, even without the present level of government debt.

So here comes the Euro, no doubt a condition of any ECB aid, which will devalue savings by at least 25 per cent.

MALCOLM PARKIN

Gamekeepers Road

Kinross