Psssst France: Here Is Why You May Want To Cool It With The Britain Bashing - The UK's 950% Debt To GDP
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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The Queen Is Dead
http://www.youtube.com/watch?v=Wz5IFl7uCis -
She said : "Eh, I know you, and you cannot sing"
I said : "That's nothing - you should hear me play piano"
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.
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:
http://www.zerohedge.com/news/and-scene-europe-agrees-disagree-next-summ...
http://static6.businessinsider.com/image/4edb70a56bb3f7b433000030/debt.png
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).
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.
ori
/this-that-and-the-4th-reich/
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.
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?
not all debt is equal though - length of maturity has to be taken into account.
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.
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
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).
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!
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!
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.
marmite cluster bombs - bitchez.
Oh, has the world changed or "has England" changed?
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....
bullish
Winning!!!
Talking about winning;
Public Policy Polling: Paul 23% Romney 20% Gingrich 14%!http://www.dailypaul.com/194317/p-paul-23-romney-20-gingrich-14
Breaking news - Paul Passes Gingirich in New Hampshire at 21% ! ! ! !http://www.dailypaul.com/194329/breaking-news-paul-passes-gingirich-in-new-hampshire-at-21
Donation site surpasses $4 Million goal. As of right now at $4,019,513.86
http://www.ronpaul2012.com/
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.
ONLY if he does not do what TPTB want him to.
Was "that crazy ass leader of North Korea" really crazy, or do they just say that about any leader that goes against the ponzi.
http://www.youtube.com/watch?v=Ms4NIB6xroc
my crazy is less crazy than your insanity?
Both.
Haven't you seen Team America?
I don't think Team America was a documentary. I am pretty sure it was a puppet show.
IS THIS TRUE???
depends on what your definition of the word 'is' is....
Fucking Limeys.
Aussie twat
+1 If you mean the 0.0001%
-1 If you don't
"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
He-WC,
so you are saying UK is kept out of the EU so it can become a dump-site for debts, with no reserve...?
Well it is the fastest place to discharge debts in bankruptcy proceedings at 12 months, currently
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.
Queen has no clothes on/naked,
Ugg Guess your version was better
That's some scary beyond-zombie shit!
"The Queen is Dead"...............
Hey, I'm pretty sure Elton's still alive, man.
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.
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.
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?
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.
Except America has more intrinsic value than most of the world.
It's just math. Credit/debt money loaned into existence with interest. Repent. The end is near.
( )
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Y-Y
/@@\
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The text only deer in headlights. Classic.
WilliamBanzai's work has suffered in quality but increased in humor, it seems. Good stuff.
And you think Noyer, with positions at both the ECB and the BIS as well as heading the Banque de France didn't know all this already?
Actually, yes.
Yes, he knew?
I'd be surprised if he didn't.
Noyer has been an integral part of the euro rollout for over a decade. Some context for those who do not know who he is can be found here:"The Gold Man" (not Goldman) at the BIS, as well as a different perspective on what it is exactly that he is a part of the quotes from Noyer are down the page a little, but the preceding text gives context.
Considering both who he is and what he certainly knows, I'd say there's a very good chance he knows exactly what's going on and what he's doing.
Ever heard the term, "useful idiot"?
For whom and in what fashion do you believe Noyer to be a "useful idiot?"
I think he's talking about MervK mate, BoE cheif and a member of the ECB Council - like every other EU central bank chief
He is a tool of people with names like Rothschild and Soros.
Hey Blondie, does FOFOA know that you're still posting here? Judging from his recent tirades about ZH it's pretty clear that ZH contributors are personna non grata over at his blog.
Wait, what? You mean debt is not a national asset? ;-)
Britain appears to be - to a first order - a giant fixed income hedge fund. Kinda like Iceland was, actually.
So. I know it's not the house style in this instance but let's look at this issue dispassionately for a moment. Let's look at each debt component according to the cash flows that service it.
Government, household, non-financial - these all seem to be reasonably sized (or no more unreasonable than their peers). Further, the government debt is denominated entirely in sterling, as is (I'm guessing) most of the household and non-fin corporate debt. (Less sure about that latter). So no special reason to call it out on these grounds.
Now - all that financial debt - presumably there are in fact assets on the other side of the balance sheet, which is servicing that financial debt. Sort of. For now. Maybe.
How crappy are those assets? What's it holding? And further - in what currencies? In other words, what currency regions will massive debt deflation be exported to in the case of a run on Britain Capital Partners LLC?
Personally I'm more interested in this angle than the "omg so big!" thing that Tyler went with here, but whatever.
A lot of those Liabilities exist within the UK on BANK Balance Sheets and the so-called "Assets" acting as collateral are in Australia, Russia, Spain, Portugal, Cyprus, USA. The City was recycling Chinese and other funds through London to Russian Oligarchs (ABN AMRO) and all sorts of rubbish in the USA through subs of RBS and HSBC and Barclays etc. So it is not actually UK Citizens' Debt so much as Banking Debt located in London or Irish SIVs with no benefit to the British taxpayer. London is not actually part of the UK - it is an Onshore/Offshore Tax Haven for funk money and the Bumbling Brown took it all onto the taxpayer sheet because he was rolled over by the Bankers just like Philip Snowden in 1931
National past time as it turns out..........
well now you know where Blythe learned her trade..... Bullshit and lies fucking people over since the stone age..... of which the second coming is not so far away...
Limey scum, limey scum,
I throw a bomb and still they come
Limey scum limey scum ...... chorus from an old irish folk song
of course it is, at one time I had $60,000 saved in my "available credit" account. It was a "asset" until I lost my job and spent it, then it became a debt, without which the local econamy(NATION) would have suffered. it finally became a "write off" and dissapeared, and nobody realy lost anything because they just created those electronic zeros through fractional reserve banking(thin air.)
Clearly you can see how the nation benifited from this! I was creating jobs with that 60g's for a little while. Somebodys got to support the service industries and local boat marinas
The UK's GDP to debt is 950% when the financial sector is profitable. What happens when the financial sector collapses? Then the GDP to debt will be 2000%. The UK may never recover from that.
Soooo... Youre implying that they CAN recover from 950%?
If by "recover" you mean print.
If by "recover" you mean print. Sir, ZH grammar rule: after the word "print" the word "bitchez" should appear. Hate to be a grammar Nazi, but we have to keep up appearances. For the children. Oh, rule Britannia bitchez.
Most of that debt is banks. The banks will fail. The UK couldn't possibly prop them up even if the public were OK with the idea.
...and with the multinational nature of banks these days, it's everyone's problem when those banks inevitably go bang - not just the UK's.
The banks just based themselves out of London because that's where the regulators had been most successfully neutered - they're not in the UK out of patriotism, that's for sure.
Meh. One day Parliment will change the currency and order all tallies..er Pounds to be burned in the basement of Westminster. Ironically, the fire could spread to the Parliment building resulting in a huge inferno and burn the government to the ground. Surley UK could not survive such an outlandish series of events, could it?
Always remember, the 5th of November...
Germans bombed Pearl Harbour?
Guy Fawkes day.
Bring it on. The longer this festers, the worse the collapse will be.
Duck and cover, y'all.
There's no big deal with that debt. They'll just devalue their currency like everyone else.
I doubt they could devalue further.
Consider one UKP was backed by ONE POUND of STERLING SILVER (.925 purity).
That amouts to around 13.5 TROY OUNCES OF PURE .999 SILVER.
Hey germanophobe village idiot, seems you do know your bastards rather well, dontcha?
and I quote: Why should the UK bail out those lazy bastards from France and Germany, who spend their time drinking wine, ouzo and beer, on endless vacations, with all welfare benefits, early retirement, free education....all at the expense of the UK taxpayer???
http://www.zerohedge.com/news/britain-about-scuttle-last-ditch-plan-z-eu...
boludes!
Tyler, that you've stated it means its already too late. So, the only question is "where is your gold and silver?, in the UK, Federal Reserve, or in your vault?" I hear the printing presses moving into nuclear mode.
i recommend high denomination notes
ZIMBABWE CASH CASTLEhttp://www.youtube.com/watch?v=L6yFnXAZgMA
Lol.. nice one :)
In the end, it all boils down to sticks.
Hey Jim, just curious, but you got any Fukushima updates? I wish you were a contributor btw.
Not much to update. I try to read the Japanese press (in English), look at the earthquake and tropical storm maps, and generally stay on top of it. They just announced that the site is in cold shutdown, which is of course nonsense, but it meets a self-imposed end of year deadline. The technical notes from TEPCO continue to read like a horror show, with new problems, water leaks, etc. cropping up about twice a month. Entropy is decaying the systems over time.
Key point: No one has actually seen the reactor cores or the fuel. Too radioactive for any human or bot.
It is in 'spray and pray' mode. As long as nothing else goes wrong they can keep the fuel from re-heating at a cost of huge amounts of irradiated water. The water treatment is going fairly poorly, but not a crisis at the moment. But with hundreds of thousands of fuel rods in over a dozen damaged cores/pools, they are playing a very defensive game. I read that they are on a 40-50 year time frame which means 'after we all retire'.
Fukushima City and smaller towns in the area are basically fucked. It is a sad story and you can find out more if you like. 'Washing' over 100,000 houses...rice and soil turning up hot every month someplace else...schoolkids not gaining weight appropriately for their ages...it's disgusting how the central government just keeps ducking.
As for Tokyo, it is worse than has been acknowledged but of course there's no way to know for sure. A school just turned up a big roof tarp that was way over the limit last week, it had just been sitting on the grounds for months. The incinerated sludge is being shoddily stored here and there with towns playing 'really hot potato' passing it back and forth. There has been ocean and harbor contamination but very little measurement.
In sum, there was about a Chernobyl of acknowledged air and ocean release, with several more Chernobyl's worth in the onsite super-irradiated water. That's where most of the radionuclides went, the cooling water. It could still go very bad, so let's pray it doesn't. Hundreds of failure pathways (things that could lead ot major new environmental release) are possible.
What is truly sad is the human impact and the governmental neglect and refusal to be honest. It all just reinforces the story here at ZH that we are not fully in control of the complex systems that we have devised, yet we continue to increase our reliance on these very systems. Corruption makes the disasters more frequent while ensuring that the costs--er, fallout--only impact ordinary, hard working people. Not the perps in charge.
thanks for the kind words....all the best this Holiday season.
I was showing a new guy around at work. He had just come from Tokyo. The claim was, everything beyond 60 km was safe. Not that I believe this, but that (apparently) was the official line, and he believed it.
Take care, and thanks for not letting this die.
Didn't you guys hear on NHK, the government says all 4 reactors are in cold shutdown and they are going to begin a plan to move people back in.
SICK FU*KS.
http://www3.nhk.or.jp/nhkworld/english/movie/feature201112162004.html
NHK now saying :
Nearly 90 percent of Japan's nuclear reactors are expected to be offline soon.
This will happen when the No. 4 reactor at the Genkai nuclear power plant, the only operating reactor of the Kyushu Electric Power Company, is halted for a regular inspection later this month.
The Kansai Electric Power Company has halted 10 of its 11 reactors.
With the planned shutdown of the Genkai No. 4 reactor, 48 of Japan's 54 reactors will not be generating power.
Some of the idle reactors are now undergoing stress tests, a prerequisite for deciding whether to resume operation.
Others are waiting on a decision by the industry ministry's Nuclear and Industrial Safety Agency which is reviewing test results.
All nuclear reactors in Japan which are currently operating are scheduled to undergo regular inspection by next spring, at the latest.
If the present stalemate continues, the country could see all 54 nuclear reactors shut down.
Monday, December 19, 2011 07:58 +0900 (JST)
That's ok, it's not like there's a country full of healthy people working in a booming economy soon anyway.
It's not a "hard" or "soft" landing, it's an irradiated landing. The new model for 2012?
As for the UK, the only way to "solve" their problem, short term, is to export some of the pile toxic sludge. Or re-pool it, chop it up, distribute evenly and sell it to their own citizens. Just like Tepco.
Just another day on the radranch:
Contaminated water found in plant's tunnel
The operator of the crippled Fukushima Daiichi nuclear power plant says a large quantity of contaminated water was found in a tunnel below a building storing highly radioactive water.
The Tokyo Electric Power Company, or TEPCO, is investigating how about 230 tons of water flowed into the tunnel.
TEPCO says a worker found the pool of water on Sunday. The water reportedly was about 50 centimeters to 3 meters deep throughout the 54-meter long tunnel.
The utility says the level of radiation at the surface of the water is 3 millisieverts per hour. It is just a fraction of the level of the highly radioactive water stored in the waste processing facility above.
TEPCO suspects that the radioactive water of the facility may have flowed into the tunnel and was diluted by groundwater.
The utility says the tunnel is not connected to the sea.
The discovery raises questions about TEPCO's inspection and management capabilities because the firm failed to notice the water in the tunnel after the waste processing facility was completed in April.
Monday, December 19, 2011 05:28 +0900 (JST)
Merkel has tits. Just sayin'.
http://operachic.typepad.com/opera_chic/2008/04/ohmeingott-ange.html
The shadows are kinda weird as is the difference in her skin color from her neck to the terminator line. Something looks fake to me. Was this done by the same govt. contractor that did Barry's BC?
My eyes! The goggles do nothing!