Two Old Codgers

How the World strikes us

This makes me feel stupid and I am sure that lots of you out there will know to whom we owe the gross national debt of £1,764 billion. Unless I am being stupid again I think that is £1,764.000.000.000.
As far as I can discover, there are perhaps three countries out of about two hundred that don’t have a national debt, they are all small so there is no way they could finance us let alone the rest of the world.

The USA seems to be the wealthiest country in the world so perhaps we borrow from them. But hang on a minute the US debt stands at $22,025,713,624,721 that is about ten times greater than the UK (Don’t start splitting hairs!).So unless some distant inhabited planet has a huge financial surplus. . . . . . . .

UK Debt
I did try the internet but got completely lost in statistics and numbers. The only thing that made any sense at all
was this graph which seems to indicate that the government has borrowed about 73% of the debt from YOU. The other 27% is the result of selling parts of the debt to other countries and presumably we pay them interest

Before you say ‘Ah well!, THEY will deal with it”. How about this. UK households now owe an average of £15,385 to credit card firms, banks and other lenders.If you include mortgages it jumps to £58,540.

Debt No debt

Averages are always difficult, I am sure many will look at those figures and think ‘I wish mine was so low’. On the other hand there will be those like me who have reached a stage in life where we don’t have any debts.

The overall impression I get is that we are riding for a fall. Globally, nationally and individually we appear to be sinking further and further into debt. But what is debt?

"Debt is an amount of money borrowed by one party from another. A debt arrangement gives the borrowing party permission to borrow money under the condition that it is to be paid back at a later date, usually with interest."

We may hide our head in the sand and push the idea of repayment to the back of our individual or collective mind but there must come a time when there simply isn’t any more to borrow. What happens then? I don’t know, do you?

My grandmother was so against debt that she was scornful of people who were in debt and, almost viewed it as sinful.  “Up to their eyes in debt and living beyond their means!”

How things have changed eh?!


Debtors Prison

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