The European debt crisis raises many issues. Debt Levels Pre Crisis Public Sector debt as % of GDP Source: EU Stat In 2007, just before the financial crisis, European debt levels were relatively low by historical standards. Irish government debt was very low at around 27% of GDP. Spain was around 37% of GDP. UK …
The Net international investment Position (IIP) measures the balance of gross assets – gross liabilities. An asset means the UK has a claim on the rest of the world. A liability means the rest of the world has a claim on the UK. There are 4 sections of net international investment. direct investment (DI) portfolio …
Readers Question I have read that the UK debt is £920bn to rise to £1.1-£1.2 trillion by next year – if the government cuts are effective. However why is it that the CIA quote UK external Debt as $8.9 trillion… that would be around £5.56trillion…. is this including public sector debt, private sector, government debt …
In times of uncertainty, people seek to find a safe investment. But, what are safe investments? Gold is currently over $1,500 May 2011 Gold / Silver. These are typically seen as a good investment and safeguard against inflation. Inflation decreases the value of money, but gold retains its value. With experiments in quantitative easing, there …
I wrote an article in this months (April) edition of Economic Review on the theme of spending cuts. It offers detailed arguments for spending cuts and also the problems of cutting spending in the current economic climate. It was written back in September quite a few months ago. A brief summary of the article. Arguments …
The Irish economy is in crisis because: Irish Banks lost substantial sums in the credit bubble and bust, this meant the Irish government had to bail them out. After several years of high growth, the Irish economy went into recession. Recent austerity measures (spending cuts) have caused a double dip recession and the current turmoil …
photo Neil Cummings flickr Spending cuts will be an emotive issue, especially for people facing job losses. But, is the TUC correct to say there is an alternative to the government’s spending cuts? (TUC Link) UK annual borrowing (PSNB) is forecast to be £149 2010/11 (12% of GDP). This is one of highest peace time …
When the Credit crisis hit, many banks faced a liquidity crisis. This means they didn’t have access to enough cash in the short term. They had assets, but, they were tied up in long term loans. If a bank lends a £100,000 mortgage to someone, it can’t ask the homeowner to sell house and payback …