UK economy 'faces crisis' warns former IMF economist

[Debaser82]

The UK should be seen in the same category of countries as Greece and Spain, who are facing severe debt problems, a leading economist has said.

Ex-IMF chief economist Simon Johnson, also described the G7 group of leading economies as "fundamentally useless".

His comments to the BBC came as G7 finance ministers discussed the growing crisis in some Eurozone nations.

http://news.bbc.co.uk/2/hi/business/8503090.stm

 

[bearice]

All the countries are facing severe debt crisis.

Country-------2009 Total debt(% of GDP)

India-----------------129

Brazil-----------------142

China-----------------159

Canada--------------259

Germany-------------285

USA-------------------300

UK--------------------466

Japan----------------471

http://www.pimco.com/LeftNav/Featured+Market+Commentary/IO/2010/February+2010+Gross+Ring+of+Fire.htm

 

[MohdSalleh]

Ssssh you can't post anything negative abt the UK here, the resident brits will jump on you in a jiffy.

 

[the1]

Looks like we're getting close to hitting the reset button.

Quote from bearice:

All the countries are facing severe debt crisis.

Country-------2009 Total debt(% of GDP)

India-----------------129

Brazil-----------------142

China-----------------159

Canada--------------259

Germany-------------285

USA-------------------300

UK--------------------466

Japan----------------471

http://www.pimco.com/LeftNav/Featured+Market+Commentary/IO/2010/February+2010+Gross+Ring+of+Fire.htm

 

[makloda]

The Greek or Spanish don't have Drachma or Peseta anymore that they could print. And the Bundesbank... opps I mean ECB ... won't print them any Euro.

The Brits still have their Pound Sterling printing presses. A luxury in times of need.

 

[C6H12O6]

Quote from makloda:

The Greek or Spanish don't have Drachma or Peseta anymore that they could print. And the Bundesbank... opps I mean ECB ... won't print them any Euro.

The Brits still have their Pound Sterling printing presses. A luxury in times of need.

UK can print pounds to pay up pound denominated debts.
They can't print other currencies.
This is the potentially catastrofic source of problems.
I'm afraid that Uk's predicament is much worse than Greece's or Spain's.

 

[clacy]

Quote from the1:

Looks like we're getting close to hitting the reset button.

This may be the outcome. If a reset is to happen, you can be assured that WWIII is just around the corner.

 

[Scataphagos]

Quote from clacy:

This may be the outcome. If a reset is to happen, you can be assured that WWIII is just around the corner.

The only "reason" for a war would to provide false justification for a nation to repudiate its debt.... not like "the good old days".

It seems there is lots of "simple think"... which concludes... "as WWII got us out of the 1930s depression, WWIII will get us out of this mess"...

This has to be one of the TOP 10 STUPID NOTIONS... We'll likely have a war all right, but it won't be to "get us out of this economic mess"...

 

[makloda]

Quote from C6H12O6:

UK can print pounds to pay up pound denominated debts.
They can't print other currencies.
This is the potentially catastrofic source of problems.

The UK government's debt is in what currency?

 

[MohdSalleh]

I am tired of this shitty bad news actually, everyday i come on to ET, there is something abt this country or that company collapsing, its like we are going to hell.