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Sunday, 18 July 2010

Britain’s Credit Rating on the Brink Figures Reveal £4.9 Trillion UK National Debt

Britain’s Credit Rating on the Brink as New Figures Reveal £4.9 Trillion National Debt

Decades of Tory-Labour-Liberal mismanagement have brought Britain to the point where we are about to lose our international credit rating as new figures reveal that the true national debt stands at £4.9 trillion, or nearly three-and-a-half times the country’s Gross Domestic Product.
New figures released by the Office for National Statistics (ONS) have shown that once public sector net debt is added in, Britain’s debt stands at £4.953 trillion. In 2008, the International Monetary Fund put Britain’s Gross Domestic Product at £1.74 trillion.
Standard & Poor (S&P), the world's biggest credit ratings agency, said in a statement that it was keeping its rating of Britain as “negative.”
S&P rates borrowers on a scale from AAA to D and has now threatened to downgrade Britain’s rating.
To make matters worse, S&P also said it did not believe figures put out by the British government’s Office for Budget Responsibility (OBR), which was set up by the ConDem regime to “improve the credibility of economic forecasts that feed into government policy.”
S&P said in its statement that the OBR has “over-estimated the strength of the recovery.”
In S&P's view, the OBR has underestimated economic growth as households and companies reduce record debt levels.
There was therefore, said the OBR, a “material risk” that the national debt would soon reach a level which was “incompatible” with an AAA rating.
The new debt figures, released by the Office for National Statistics (ONS), were calculated by adding in Government liabilities such as public service pension obligations (£1.2 trillion) and “liabilities in unfunded state pension schemes” which account for another £1.35 trillion.
The bankster bailout makes up another £1.5 trillion.
What this means in real terms for the public is that every man, woman and child in Britain has been burdened with a £65,000 share of state debt.
According to reports, an average household “would have to work for five years to pay off its portion.”
The most recently available earnings figures show that average household income last year after taxes and benefits was £29,100.