Real level of debt tops £100,000 per household
The UK government is now borrowing - even on official figures - £141 billion per year. That is almost £3 billion per week, or equivalent to £450 per month for each household in the country.
This is simply unsustainable. An annual deficit of 10 per cent of GDP or more is surely the path to ruin.
But it gets worse. Back in 2009 the Centre for Policy Studies produced a report called The Hidden Debt Bombshell. By calculating PFI contracts, public sector pensions and other factors, it estimated that the real national debt at the time was £2,200 billion, not the £825 billion admitted to by government figures. Since then, we estimate that a further £500 billion has been added to the total debt.
In short, the national debt now stands at £2,750 billion - or £105,000 for each household.
As we watch the crisis unfolding in Greece, we may wish to contemplate that figure for a while. For us, the crisis may only just be beginning.