I think somewhere between 30% and 40% of GDP, rising towards the latter under Labour, so in a trillion quid economy, your figures look pretty near spot on.
So, the US GDP is about $11 trillion in 2003. The UK about $1.7 trillion in
2003.
Thus the US economy is 6.5 greater. The debt of the US government appears to be $7.5 trillion / 470 billion greater = 9.1 times greater than the UK debt.
I think Asian central banks trust american dollars to much!
Yes, the question is when will their nerve break and they start selling (since the dollar is on a slide, the value of the asian's dollar paper is shrinking).
I doubt if that would stand up to scrutiny. After all most people have been contributing to their pension- generally from 5-11% of salary. That would run all the way to the court of human rights.
I do think there may have to be a scaling back of the amount offered though.
But highly unlikely given the govts. present anxiety to ensure there is a pensions 'safety net' to cater for companies going out of existence. I can't see even this lot cancelling public sector pensions.
On a pedantic note, there was no restriction of the word 'debt' in the OP. I think everyone would understand the term 'debt' in the ordinary course of the word, as something which is owed by one person/organisation to another. If you take the line that any debt could ultimately be cancelled by statute, then whilst no doubt true in the final analysis, it doesn't negate the fact that ** at the moment
** it is clearly debt.
Rgds __ Richard Buttrey Grappenhall, Cheshire, UK __________________________
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