A British default is becoming more likely by the day. A country that owes trillions of US Dollars, pays billions on a monthly basis and has little to show for a real economy looks increasingly as a ship heading towards the rocks.
John Healey, former Secretary for Defense and now Chancellor of the Exchequer, has very little to be happy about and so do millons of Britons whose lives are turning into a nightmare. Prices that used to be relatively stable are now rising monthly or weekly.
By the time you finish doing your budget, you have to start all over again. If the Chancellor of the Exchequer has even less money to distribute then the risks of job losses and welfare cuts are all too obvious. If this comes together with loss of trust regarding the Pound then the ugly face of Devaluation is all too visible. It is also obvious that is the economy goes drastically downhill then investors trust will evaporate. Investors are already asking for higher and higher returns for public debt.
Reserves? What reserves? When Prime Minister Gordon Brown, former Chancellor of the Exchequer, was in charge then Britain had reserves to deal with the consecuences of an American financial upheaval. He could keep the banking system afloat, but there were many casualties. This time there are no reserves. The ship is going down and there are no lifeboats.
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