Economists are busy trying to calculate how much the U.K. will have to borrow to deal with the effects of the present financial credit crisis. Government borrowing is obviously going to have to be ramped up and 90 billion quid for next year seems to be looking like a probable ballpark figure. As a result of this need there is a growing fear that taxes will have to be raised, maybe as much as 5p in the pound being plonked on income tax. The Chancellor of the Exchequer Darling (my mother warned me to never trust a man with white hair and black eyebrows) previously predicted a Government deficit of £43 billion for this year. This is going to be plain wrong and looks likely to be more like £60-65 billion. Britain has the largest budget deficit of any developed country and we seem intent on extending our lead. Way to go boys!!!!!!!!
This situation is totally out of control. It will hang like a Sword of Damocles (sign of impending doom) over sterling. The fall-out might not come tomorrow, next week, or maybe even next month. But trust me, the pidgeons will be coming home to roost one day soon. Probably best not to be under their flight path when that happens!!!