While certainly humorous, entertaining and very, very childish, the recent war of words between France and Britain [see here for example] has the potential to become the worst thing to ever happen to Europe. Actually, make that the world and modern civilization. Why? Because while we sympathize with England, and are stunned by the immature petulant response from France and its head banker Christian Noyer to the threat of an imminent S&P downgrade of its overblown AAA rating, the truth is that France is actually 100% correct in telling the world to shift its attention from France and to Britain.Why? As the chart in the linked blog post shows, the UK debt to GDP ratio is 950%. That is bigger than Japan, at just over 600%, or Europe as a whole, at about 450%. Bigger than the US, where it is about 300%.
The article goes on
then this island, which far more so than the US is the true center of the global banking ponzi scheme, will suddenly find itself at the mercy of the market. At that point the only question is whether the vigilantes will dare to take down the UK, as said take down will result in an implosion in the very fabric of modern finance, much more so than what even a full collapse of France could ever achieve.The blogger gives a mention to AIG-FP's Joe Cassano.
Doesn't someone have to cover all that debt? Is this a "bite the bullet" question hanging out there and blocking investment, and thus economic recovery and growth?
Regards — Cliff