From this Telegraph report about the £126bn (~$200 billion) in borrowing by the U.K. government at the conclusion of their fiscal year comes the graphic below that begs the question, “How different would the chart be if financial interventions were included”?
According to the story, a Treasury spokesman said, “Today’s data shows that the forecast for 2011-12 is on track, with public borrowing down by £11 billion compared to the previous year. This shows that the Government’s plan to reduce the budget deficit is working.”
Others interviewed for the report were not so sanguine.
As a point of reference, the population and GDP of the U.K. are between one-fifth and one-sixth that of the U.S., so, the $200 billion in borrowing above is analogous to the $1+ trillion deficits here across the pond.
About The Author - Tim Iacono, a retired software engineer living in Bozeman, Montana, is the founder of Iacono Research. (EconMatters author archive here.)
The views and opinions expressed herein are the author's own, and do not necessarily reflect those of EconMatters.
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