Comments on: Brooks Newmark drops a debt bombshell http://blogs.reuters.com/great-debate-uk/2009/10/19/brooks-newmark-drops-a-debt-bombshell/ Wed, 16 Nov 2016 01:37:11 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Haroon Abbasi http://blogs.reuters.com/great-debate-uk/2009/10/19/brooks-newmark-drops-a-debt-bombshell/comment-page-1/#comment-7817 Fri, 23 Oct 2009 15:44:43 +0000 http://blogs.reuters.com/great-debate-uk/?p=3755#comment-7817 This is a very intelligent and insightful analysis.

We are a nation living well beyond her means at every level. And yet the government and BoE is getting us deeper and deeper into the hole by increasing our indebtedness and devaluing our currency.

This will all end in a good old fashioned currency crisis as bond investors head for the exit, sterling falls of a cliff, inflation rockets and finally interest rates are forced up.

Why any bond investor would want to hold gilts is beyond my comprehension as we clearly have no honourable way out of our national liabilities. Government bonds are the last major bubble waiting to crash. When it does the consequences will truly be cataclysmic and will force a radical rethink of economic policy across the globe. What we have seen so far in terms of reform of the international monetary system is mere window dressing, sticky plaster on a gaping wound. The real pain is still to come.

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By: Jennifer Heaven http://blogs.reuters.com/great-debate-uk/2009/10/19/brooks-newmark-drops-a-debt-bombshell/comment-page-1/#comment-7812 Fri, 23 Oct 2009 11:33:22 +0000 http://blogs.reuters.com/great-debate-uk/?p=3755#comment-7812 This must be true of the UK due to the non transparancy of accounting for Government liabilities in for example Private Funding Initiatives.

Smoke and mirrors…and we are not alone – what about the unfunded liabilities in the US?

The UK exhibits all the failures of the World’s largest economy but without the benefit of having the World’s Reserve Currency ATM.

Who knows where this will end? The IMF?

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