Japanese levels of debt

Private and public-sector debtMcKinseyQuarterly has published a scary article (free registration required) that shows how the UK’s debt (private and public sector) has now reached Japanese levels, far higher than other Western countries, including to the US. (Hattip: Guy Fawkes’ blog.)

I’m not sure how serious this is in its own right. For instance, for Japan it is often said that the massive debt is less of a problem because most of the creditors are Japanese, too. However, this is unlikely to be the case for the UK.

All that I can see is that if the UK’s debt needs to be reduced to American (or just French) levels, it’s going to be very, very painful.

Comments

  1. I don’t think that Labour will say too much on this prior to the election.

    The Tories will not know what to do with it if they get in.

    Labour are probably better placed to deal with it on the basis that they have the experience of being in power since 1997, and are familiar with dealing with all the various monetary mechanisms in place and how the treasury works.

    Just a pity that they are such a weak and pathetic government.

    The options anyone? Any Britsh Obama’s out there?

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