Tel. +44 (0)20 7287 4414
Email. info@brugesgroup.com
Tel. +44 (0)20 7287 4414
Email. info@brugesgroup.com
The Bruges Group spearheaded the intellectual battle to win a vote to leave the European Union and, above all, against the emergence of a centralised EU state.
The Bruges Group spearheaded the intellectual battle to win a vote to leave the European Union and, above all, against the emergence of a centralised EU state.
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Bruges Group Blog

Spearheading the intellectual battle against the EU. And for new thinking in international affairs.

UK debt and the sword of Damocles

The general public has little idea of how much debt hangs over our heads.

Today, Laura Perrins warns us that government borrowing is now equivalent to 99.2% of GDP (i.e. a whole year's worth of national economic activity); but that is only the tip of the iceberg, because it is only looking at public sector borrowing.

Unlike the UK, where valuable financial information is treated like a dirty family secret, the US Federal Reserve also keeps track of ALL debt in the system, both public and private. As at Q4 of 2022 US Total Credit Market Debt Outstanding (TCMDO) was $93.497 trillion while US GDP was $26.137 trillion; so, a debt-to-GDP ratio of 358%. That is a major deterioration from twelve years ago, when US debt-to-GDP was already a lamentable 279%.

But if you think that was bad, consider that even then (Q2 2011) the British position was much worse: 507% according to this McKinsey report. As per their graphic below, we were then almost exactly as badly off as Japan, which has been bog-snorkeling through a debt quagmire since the early 1990s.

What would the UK's plight look like now, if we were permitted to see it?

As for the EU that so many right-thinking people want us to re-join, the finances are even more opaque. Bruge Group contributor Bob Lyddon showed us two days ago that underneath the visible liabilities of the Union lies another €10 trillion-plus at risk, equivalent to a submerged extra c. 64% of GDP.

In ancient times there was a periodic Debt Jubilee to clear the system. I don't know if and how it could work today, but without it we in the West have to pray that the thread suspending the sword above us doesn't snap.


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Director : Robert Oulds
Tel: 020 7287 4414
Chairman: Barry Legg
 
The Bruges Group
246 Linen Hall, 162-168 Regent Street
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KEY PERSONNEL
 
Founder President :
The Rt Hon. the Baroness Thatcher of Kesteven LG, OM, FRS 
Vice-President : The Rt Hon. the Lord Lamont of Lerwick,
Chairman: Barry Legg
Director : Robert Oulds MA, FRSA
Washington D.C. Representative : John O'Sullivan CBE
Founder Chairman : Lord Harris of High Cross
Head of Media: Jack Soames