The UK Government are £2.8 trillion in debt. That’s 2.8 thousand billion pounds. The cost to borrow the money is £2 billion a week.
Who owns the debt ? About 70% is borrowed from Pension Funds , Insurance Companies and Individuals in UK. That’s £1.4 billion a week to pay back into the economy. The remaining £600 million a week goes to the foreign investors. The annual return for everyone is say 3.75% which is a relative low.
Inflation the wipe away cloth of all debt currently at 2.8% means real cost 0.95%. Interest on the debt is roughly 9% of Government spend.
Rather than cut welfare benefits one could borrow more and devote more time in seeking closer scrutiny of our spend. After all welfare given on a Friday is back in the economy by Monday.
Finally a note to Mr Trump. The UK hold approximately £550 billion of USA debt roughly the same amount that the USA hold of UK debt. USA is 7 times larger than UK in population terms .
Aka NATO Mr Trump as you rightly say Europe of equal population to USA should pay its fair share. Alas Mr Trump could you top up the debt to UK another six fold say £3.3billion. After all we do have a special relationship.
There is a debt to Society……to do the right thing. Just a thought.
qbitblogger 