– January 28, 2011

“An odd thing occurred this week. Britain’s national debt jumped by £1.3 trillion, virtually 100% of GDP, and hardly anyone paid attention. The bad news was crowded out by the surprise 0.5% drop in national output in the last quarter of 2010.

There was reason to this apparent insouciance. What happened was that the figures published by the Office for National Statistics (ONS) finally caught up with the huge banking bail-outs of late 2008, when the government took effective control of Royal Bank of Scotland (RBS) and Lloyds Banking Group (LBG) by injecting big slugs of capital into them.” Read more

“Chronicle of a Debt Foretold” 
The Economist, January 28, 2011. 

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Tom Duncan

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