Psssst France: Here Is Why You May Want To Cool It With The Britain Bashing - The UK's 950% Debt To GDP

Tyler Durden's picture

While certainly humorous, entertaining and very, very childish, the recent war of words between France and Britain has the potential to become the worst thing to ever happen to Europe. Actually, make that the world and modern civilization. Why? Because while we sympathize with England, and are stunned by the immature petulant response from France and its head banker Christian Noyer to the threat of an imminent S&P downgrade of its overblown AAA rating, the truth is that France is actually 100% correct in telling the world to shift its attention from France and to Britain. So why is this bad. Because as the chart below shows, if there is anything the global financial system needs, is for the rating agencies, bond vigilantes, and lastly, general public itself, to realize that the UK's consolidated debt (non-financial, financial, government and household) to GDP is... just under 1000%. That's right: the UK debt, when one adds to its more tenable sovereign debt tranche all the other debt carried on UK books (and thus making the transfer of private debt to the public balance sheet impossible), is nearly ten times greater than the country's GDP. To call that "game over" is an insult to game overs everywhere. So here's the bottom line: France should quietly and happily accept a downgrade, because the worst that could happen would be a few big French banks collapsing, and that's it. If, on the other hand, the UK becomes the center of attention (recall this is the same UK that allows unlimited rehypothecation of worthless assets, and the same UK that unleashed the juggernaut known as AIG-FP's Joe Cassano - after all there is a reason why the UK has 600% its GDP in financial liabilities - financial innovation always goes there where it is least regulated), then this island, which far more so than the US is the true center of the global banking ponzi scheme, will suddenly find itself at the mercy of the market. At that point the only question is whether the vigilantes will dare to take down the UK, as said take down will result in an implosion in the very fabric of modern finance, much more so than what even a full collapse of France could ever achieve, or if due to the certain Mutual Assured Destruction that would follow a coordinated UK onslaught, the market will simply very quietly proceed to ignore the elephant in the room.

Source: Anthony B. Sanders testimony to Congress, December 15, 2011

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Seasmoke's picture

The Queen Is Dead

kridkrid's picture -

She said : "Eh, I know you, and you cannot sing"
I said : "That's nothing - you should hear me play piano"

The Big Ching-aso's picture



If the Brits go to war with the French all they have to do to utterly obliterate them is cut off their food supply and feed them their's.


TruthInSunshine's picture

I seem to recall making this exact point about the U.K.  9 days ago, citing the same chart, and having the blind defenders and loyalists of the British Dump of Toxicity go batshit crazy in response:


Assuming Haver Analytics, which I believe is a semi-independent affiliate of Morgan Stanley, has their data set in good shape, total debt (governmental, household, financial, non-financial) as a % of GDP is far and away the highest in the UK out of any developed nation in the world, at just under 1000%.

In  the developed world asylum of debt addicts, the UK is 'Chief Crazy Pills', full on lobotomy (and a huge reason why is their cesspool, gangrenous financial sector, which is a plague and scar upon the land):


And let me state, in anticipation of what I assume may be part of [the response of blind defenders and deflectors of the U.K. and objective, arithmetic-derived observations regarding the U.K.'s morbid financial condition], that in the final analysis, if one assumes that this debt gets repaid, even if by devalued fiat and therefore as just a mere technicality and not truly in substance, there won't be any difference between how financial sector debt and governmental debt is prepped and treated, as the financial sector debt will all be nationalized anyways (thus ultimately becoming governmental debt).


And the point about the financial sludge representing such a major % of U.K. debt shouldn't be narrowly construed to the woes of the U.K. and its extremely large, inefficient & incredibly subsidized financial sector, either, because the U.S. is literally walking in the shadow footsteps of the U.K. (the central fractional bankers who plot U.K. and U.S. monetary policy work from the exact same playbook, and in fact, are nepotistic and incestuous, to a large degree) - it all stems from the successes of Nathan Mayer Rothschild literally buying Britain, and then using it to deeply penetrate the colonies way back when.

The U.S. is literally 40 to 50 years behind the U.K., because the fractional reserve conjurer/sorcerer bankers control the money supply in both England and the U.S. (look at how the UK lost its domestic manufacturing companies, and went to a FIRE economy, with finance, in all of its wealth draining variations, being the foundation of their now collapsing house of cards, while at the same time deeply capturing the legislators and regulators in England, and thus sucking the taxpayers to the edge of death, and crowding out productive, efficient investment --- just like the United States).

Oh regional Indian's picture

Indeed TIS. Given that the UK is the home of fractional reserve malarky, it makes sense that they are the most fractionally reserved and the most un-reservedly insane nation.

Of course, Paris is in-seine, but that is a whole other story. What this story does is re-cast the spotlight on why was the UK buying so much US debt off late?

And back when in 1999, why did Brown sell the gold? So cheap?

I think there are too many hidden currents to make linear assumptions about GB OR the GBP for that matter. It's been kept out of the Euro for a reason.



philipat's picture

Depends on the definition of "Financial" debt. In either definition, it doessn't include CDS and other derivatives exposure. Most of which have, at the very least, counterparties on both sides in NY. When "Net" becomes "Nyet" the SHTF. So don't be so fucking cute, the financial markets will sink, or swim, together.

fourchan's picture

other than being next to each other, what do france and germany have in common anyway?

these buddy buddy pictures with merkel and sarko always leave me with a big WTF?


tooktheredpill's picture

not all debt is equal though - length of maturity has to be taken into account.

BobRocket's picture

 If you repeat a lie often enough it will become the truth (unless you can do the math)


 'why did Brown sell the gold? So cheap?'


He got ~16 barrels of brent crude for every ounce he sold.


How many barrels of brent crude could you buy today with one ounce of gold, surprise surprise it turns out to be ~16


You might notice that you require 7 times more dollars to buy an ounce of gold today than you did in 99, gold is worth what it always was, the dollar is now worth shit.





NuYawkFrankie's picture

Re The U.S. is literally 40 to 50 years behind the U.K.

Hmmmm.... that's a howler!  The USA & UK are co-joined, they operate as one - the Bonnie & Clyde of high finance.

Make no mistake, when the UK goes down, the US follows - and vica versa


TruthInSunshine's picture

I think you either misinterpreted my statement or that I wasn't clear enough in terms of what I wrote.

By writing that "[t]he U.S. is literally 40 to 50 years behind the U.K.," it was my intent to state that we in the U.S. are walking in the footsteps of England, and that one can literally predict the future of the U.S. (in terms of composition of economy by sector, debt levels, income distribution, and even media trends [e.g. With outright gossip comprising the bulk of the news consumed]) by studying England now.

The U.K. went from the greatest power on earth for a short spell, to a major industrialized nation with a still disproportionately large MIC, to a de-industrialized FIRE economy with a large but trending smaller MIC (as the U.S. and NATO provided umbrella of protection), to what is now a banking/financial sector top heavy capsizing vessel, with the ill financial health of limitless bank/financial sector bailouts and propping up of that sector crowding out other segments of the economy, and imposing brutal externalities upon taxpayers and other businesses, with a social entitlement system that literally can not be sustained given the demographics of the nation and the extremely low level of labor force participation and youth unemployment.

Hence, the U.K. trends ever closer to rich man-poor man society, in a more pronounced way than since the Dicken's "worst of times, best of times."

The U.S. is now about where the U.K. was back in the 1940's, pre-WWII, economically (obviously, the massive war machine the U.S. had assembled, but which will now be disassembled as it's no longer sustainable, is the one critical difference between the U.S. and U.K., given the U.S.'s status as protectorate of much of the oil producing Middle East).

Ultimately, the U.S. is on the same trajectory as the U.K., and for the same reasons - a massively subsidized and net-net wealth draining financial/banking sector that cripples the rest of the economy and absolutely punishes taxpayers and private consumption.

Germany chose not to subsidize its banking and financial services sector to nearly the same degree as the U.K. or U.S., and thus enabled market forces to create the conditions to allow the other segments of its economy to not become surcharged and crowded out, nor taxpayers to be anally raped on a constant basis to bail out cancerous financial/banking actors due its ability to prevent deep capture of German legislative and regulatory bodies by fractional reserve banking interests (Germany has moved towards a much more balanced economy, adapting to many of the challenges raised by a globally integrated economy with cheap labor abundant in eastern europe, south america and China, while ensuring that a good chunk of its high wage and advanced fabrication/production methods that center around many highly technical and even proprietary information stays within Germany).

Hive Raid's picture

Well congratulations, you get the Golden Coxucker Award. It's not exactly a knighthood, but knights are a little light in the gauntlets these days. I now annoint you: Sir Golden Coxucker. And if you stop me again whilst I'm walking you'll be next in line for a Nobel. Now scram!

Eireann go Brach's picture

Ponzi collapses do not care if the UK is in the EU or not, everything and everyone is interconnected these days, so they are all fucked anyway. They are arguing who should pay the bar tab in the Titanic at this stage!

Boeing Boy's picture

Duck gizzard salad?  I don't think so.  For all you Americans, it is very easy to buy healthy salads and be served wonderful seasonal vegetables in any British restaurant.  I always bring vitamin pills when touring America.  French food is stuck in the middle ages, still using cheap cuts of meat and cooking it for days, or, worse still lake fish.  

My recommend would be all things Italian.

vxpatel's picture

marmite cluster bombs - bitchez.

jaffa's picture

The debt is an obligation owed by one party to a second party, the creditor, usually this refers to assets granted by the creditor to the debtor, but the term can also be used metaphorically to cover moral obligations and other interactions not based on economic value. Thanks.
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New Normalist's picture

Oh, has the world changed or "has England" changed?

jaffa's picture

The debt obligation is considered secured, if creditors have recourse to the assets of the company on a proprietary basis or otherwise ahead of general claims against the company. Unsecured debt comprises financial obligations, where creditors do not have recourse to the assets of the borrower to satisfy their claims. Thanks.
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NumNutt's picture

This is off topic but did anyone else just hear that the crazy ass leader of North Korea just died?  Can't wait to see what his son has in mind for that country....

Michael's picture

Talking about winning;

Public Policy Polling: Paul 23% Romney 20% Gingrich 14%!

Breaking news - Paul Passes Gingirich in New Hampshire at 21% ! ! ! !

natty light's picture

Donation site surpasses $4 Million goal. As of right now at $4,019,513.86

BigJim's picture

I pray God he's got effective security.

If Ron Paul becomes prez he'll have more would-be assassins than JFK, MLK, Jesus, Rabin and every other would-be peace-maker combined.

Crisismode's picture

ONLY if he does not do what TPTB want him to.

dolly madison's picture

Was "that crazy ass leader of North Korea" really crazy, or do they just say that about any leader that goes against the ponzi.

vxpatel's picture

my crazy is less crazy than your insanity?

BigJim's picture


Haven't you seen Team America?

Quinvarius's picture

I don't think Team America was a documentary.  I am pretty sure it was a puppet show.

vxpatel's picture

depends on what your definition of the word 'is' is....

He_Who Carried The Sun's picture

"The Queen Is Dead"

Nonsense, she and all her kin will move back to Germany and take all Anglos and Saxons with them and leave that floating pile of smelly sh*t at the mercy of Picts and Sharks. heheh

old naughty's picture


so you are saying UK is kept out of the EU so it can become a dump-site for debts, with no reserve...?

DrunkenMonkey's picture

Well it is the fastest place to discharge debts in bankruptcy proceedings at 12 months, currently

maxcody's picture

Big difference Britian can Print money the French can not.  Yes the food in

France is better but the Germans have the best wheat Beer.

vipobviously's picture

Queen has no clothes on/naked,

Ugg Guess your version was better

vast-dom's picture

That's some scary beyond-zombie shit!

The Big Ching-aso's picture


"The Queen is Dead"...............


Hey, I'm pretty sure Elton's still alive, man.


sharpe's picture

These are interesting points, but miss the main point. Rating agencies are looking at government debt here. The UK government has a far longer duration on its bonds than other states, which means it will require much funding over the next few years than other nations. And unlike France it can print money which means it can default at its own leisure.

BigJim's picture

I thought by now we'd pretty much established that financial debts are government debts, or will be made so rather than have the precious share/bond holders take a hit.

Quintus's picture

Check this out.  'Noyer' translates as a noun to 'Nut' in English (A Walnut specifically) and as a verb to 'Sink' or 'Drown'.

Could a lunatic in charge of a sinking economy possibly be named any more appropriately?

JPM Hater001's picture

And there you have it.  Once again the Brits lead the world in mass destruction.

This is very sad really when once considers the global empire they once were.

Take a very good look America.  Here is our future.

bill1102inf's picture

Except America has more intrinsic value than most of the world.

kridkrid's picture

It's just math.  Credit/debt money loaned into existence with interest.  Repent.  The end is near.

gangland's picture



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Cursive's picture

The text only deer in headlights.  Classic.