Who owns UK Debt?

money grabEach day the news usually has room for items on the financial crisis. We are all aware of the fact that the national debt is a source of concern and that the government is actively finding cuts to the structural deficit in the hope that it will eventually result in a reduction of the national debt. 

The debt, of course, is owed by us, the taxpayer to the tune of £16,000 per taxpayer and that figure increases by £2,000 per year in interest payments alone. That is without any further increased borrowings on the part of the Government. The debt stands at £1,000 billion and is 1/3 of our GDP. Interestingly, though not to make light of the problem, the US owe a figure that is 100% of their GDP and Japan 202% of theirs.

So who owns our debt? 33% is owned by foreign investors ( approx £400bn).  Next is the Bank of England with 29% (approx £386bn) , 25% is owed to private insurance companies and pension funds ( £335bn) and the remainder owed to Banks, Building Societies and other financial institutions. Whilst quite interesting none of this information does us any good other than to arm us with the facts which should underpin our deep concern over the need to reduce borrowings and pay off the debt. It does pose the question - "How did we get into this position?" The truth is we were led by the nose by politicians purporting to be "prudent" but in effect engaging in spending programmes that we could not afford, even at the time, let alone sustaining them in the long run. 

Government's always point the finger elsewhere and yet we see the same people responsible for the situation still occupying positions of power and influence. When are we going to learn that we have to look for a more honest way of government which does not attempt to buy votes with short term policies but seek a way of governing that has a vision and policies which tackle issues that will not be resolved in the life of their parliament, or perhaps the following one. That, requires political courage, so don't hold your breath!

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