The Great Financial Deception of 2010

Just got this from Money Week:

On 26th January 2010, the Prime Minister proudly told a packed press conference the ‘Great Recession’ was over...

He’s lying.

Sure, technically the UK economy ticked up a measly 0.1% in the last quarter of 2009 (even the dumbest investor knows that’s statistically insignificant)...

But look deeper into the underlying state of the country’s finances and a much darker picture emerges...

The truth is, Brown has backed himself into a corner he can’t get out of...

Over the last two years he’s borrowed more and more. Now the whole nation drags round heavy chains of debt – banks, government and people. We’re strangled by it.

And it only gets worse with every passing month!

Now the government has to find a staggering £676 billion this year just to meet its public spending commitments and repay its debt.

Trouble is income from taxes and other sources will only be £498 billion… leaving us with a crushing £178 billion shortfall in just one year. 

And that’s just the start...

The same thing will happen in 2011, and 2012... until by 2015 economists calculate we’ll be£1.5 trillion in the red.

But countries can always borrow from one another when they get in a tight spot, right? What’s so different about THIS time?

There’s a BIG difference...

You see, up until now Britain has enjoyed its status as ‘AAA’ sovereign rated country – or ‘Triple A’, as we call it.

Essentially, it proves to the rest of the world Britain is a top-notch borrower... fully capable of repaying its debts. And it means we can pretty much borrow what we like.

But we’ve racked up SO much debt... SO fast... that confidence is wearing dangerously thin...

• In January Pimco, the world’s biggest investor in ‘Triple A’ government bonds, said it was ready to jump ship and would be a “net seller of UK gilts this year...”

• “High debt with the potential to devalue its currency present high risks for bond investors.” Bill Gross World renowned fund manager

  At the same time Bill Gross, one of the world’s most renowned fund managers, said that in 2010 “the U.K. is a must to avoid. Its gilts are resting on a bed of nitroglycerine...”

• And just weeks before Fitch – one of the world’s three ‘credit rating agencies’ – warned Britain that UNLESS we take urgent measures to rein in our debt... we face losing our ‘Triple A’ rating...

If that happens it would send our economy into a debt spiral…

The Treasury would be forced to pay more for its borrowing… which in turn will push the country’s deficit higher still…

Then the financial burden on each and every one of us would be unbearable.

Of course Gordon Brown KNOWS this... but he’s not letting on.

Why? Because there’s an election coming up!

But it’s what happens AFTER the election that concerns us.

Why should it concern you? Your investments? Your savings? Your retirement?

Oh well never mind eh? Good Title they came up with isn't it. Reckon the Conservatives could use it.