ANALYSIS, COMMENTS, THOUGHTS, AND OTHER OBSERVATIONS IN DR. SKOSPLES' NATIONAL INCOME AND BUSINESS CYCLES COURSE AT OHIO WESLEYAN UNIVERSITY
Saturday, March 27, 2010
Are the Brits headed for the PIGS sty?
According to this article the United Kingdom is in danger of becoming just like Italy, Portugal, Spain, and Greece. The worry is that the U.K. will go deeper in debt, "Government spending is on track to account for more than half of U.K. gross domestic product in 2010, while government debt is heading toward 64% of GDP next year, up from 44% in fiscal 2009." All of these governments currently are in trouble and have needed some sort of help financially. What sets the United Kingdom apart from everyone else is that they have a number of different ways to help themselves out. In the article they talk about some of U.K.'s options in terms of solving this problem, "Both are able to raise funds by selling debt denominated in their own currency, for instance, and have free floating currencies that can ease economic adjustments."
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I am sure Britain will be fine and will be able to avoid any sort of big mess, however they will most likely face some problems.
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