Problem is ...

Country has the largest debt of any AAA rated country in the western world - this is because of huge overspending during what were relateively wealthy times under the last government. However, we currently borrow at a rate lower than Germany - therefore it is just about affordable. But, if we lose that rating, and borrowing becomes more expensive .... we are well and truly f***d (see Italy etc). Therefore, the Government has committed to "cuts" (note, incidentally: 1. that we still spend more than we raise, as a state; and 2. the amount we owe is therefore still increasing) - without those cuts (and note also that Labout party pre-election said it would have to cut to a substantially similar extent) our AAA rating would be threatened. Why do you think every other country is (belatedly in some cases) doing the same thing? The party is over ....

Posted By: paulg, Dec 1, 09:36:40