Wednesday, December 30, 2009

UK debt levels big? Well actually no not really, UK debt leves are actually LOW

BBC News - French public debt in new high after stimulus spending

We see about the real reason for the Tories drive to put UK public sector on massive diet.  The UK economy can be divided in to two groups: bankers and productive people.  Productive people certainly pay taxes but also do business with the public sector.  Bankers on the other hand only really care about the value of the pound.

Bankers want to keep public sector debt very very low so that the pound will return to high levels so that investment will flood in to the UK.  Don't think that this money coming in to UK banks produces UK economic growth.  The money is then invested outside of the UK for the most part, the only economic activity produced is the banks activity.

So right now the bankers are concerned firstly that the public sector owns them now, and that the world economies are being kept alive by government spending which is increasing debt levels.  The UK was hit hard because banking is such a large part of its economy, but came from very low debt levels compared to other developed countries.

Ignore 500,000 or so jobs were saved by effective government response to the economy,  the bankers want to have a weak pro-Bank government they can push around and they want the dept brought down very low to bring up the pound no matter the consequences for ordinary Brits, and Cameron has promises them all this.
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