Can Britain avoid total economic collapse? What do you think?

There’s no need to listen to the streams of excrement pouring from the mouths of Cameron, Osborne, Clegg, Miliband, Balls and so many others. Our leaders are just filling their own pockets while they can before we’re hit by the massive financial disaster that they have caused through their greed and incompetence.

So, ignore what the politicians�say. There are only two facts which are important. First is the level of Britain’s debt (see figure below)

Labour increased debt by �380bn from �320bn to �700bn. The Coalition will push our debt up by �700bn to over �1.4trn. There has been no austerity. Public spending and borrowing are completely and deleriously out of control.

Second important fact is the interest we pay on our debt (see figure below)

Because our Government has magicked money out of thin air to buy �375bn of our own debt, interest rates are at historic lows. But what happens when we can no longer buy our own debt and financial markets want say 5% to buy British debt? That’s not high by historic levels.��Well, 5% of �1.4trn is �70bn a year. Whoops. That’s more than we spend on defence or education. If Balls pushes borrowing up to �1.6trn, 5% would mean paying �80bn a year in interest.

We’ll have to cut public spending by more than 10% just to pay our interest bill. We’ll have to cut public spending by 25% to pay our interest and eliminate the deficit so our debts stop increasing. And if we could cut public spending by 35%, it would only take 70 years to bring debt down to the level it was when the Coalition took power.

But no government has the courage to make even a 10% cut in spending. So our debts will keep increasing. A�disaster is coming our way. If any of you has any ideas of how this will play out, please email me at david.craig54@yahoo.co.uk�as I’m struggling to find a positive solution.�Then I’ll look at some possible scenarios tomorrow.