Should it not really be called UPIIGS?

[oyster]

I was looking at the forecast deficits for the PIIGS countries for 2011 and 2012 and here they are:

Spain 2011 6.4%
Spain 2012 5.3%

Portugal 2011 4.9%
Portugal 2012 2.7%

Ireland 2011 10.3%
Ireland 2012 9.1%

Italy 2011 3.9%
Italy 2012 2.7%

Greece 2011 7.0%
Greece 2012 2.8%

Now look at this for the UK:
2011 9.9%
2012 7.5%

Only Ireland is worse than us.

[spikeyhead]

and what is the debt?

adding a bit more on the credit card isn't an issue when you've not put much on there previously. It it's already maxed out. ...

[matsmith]

spikeyhead said:

and what is the debt?

Public debt as % of GDP according to wikipedia

Spain 2009est 53.2%

Portugal 2009est 76.9%

Ireland 2009est 57.7%

Italy 2009est 115.2%

Greece 2009est 126.8%

UK 2009est 68.1%

[DonkeyApple]

We have stronger abilities to earn income than those countries but more importantly we can debase our currency and control our interest rates which has been vital.

If we had been part of the Euro then not only would we be paying far more to Europe but we would not have been able to save the housing bubble 2 years ago and the picture here would be a lot different.

[Fittster]

If you really want to look at problems, have a look at the figures for the US and Japan.

Iceland wasn't in the Euro and it hit the rocks so don't start thinking that you can run up huge debts as long as you can set your own interest rates.

[12gauge]

We're probably not considered part of the PIIGS because if we run into a little trouble, the ECB and co will give us the one fingered salute, unlike the PIIGS, who are their problem.

[12gauge]

Fittster said:

If you really want to look at problems, have a look at the figures for the US and Japan.

Iceland wasn't in the Euro and it hit the rocks so don't start thinking that you can run up huge debts as long as you can set your own interest rates.

I think the main problem was most of icelands debts were denominated in foreign currencies, so once their currency began to slide, that was the end for them.

Id guess given the pound has lost a huge amount of its value over the last couple of years, and despite our debt levels growing, our interest payments have been falling, means most our debts are in sterling.

Not saying there wont come a time when we will share the same fate as Iceland, probably very soon in fact as the BoE work out whether people start going bankrupt due to low interest rates (fuel, food, inflation) or higher interest rates (mortgage payments)

If we make it another year i'll be surprised.

[Fittster]

A little quote about the US, Ireland and Greece:

"In Europe, peripheral countries such as Ireland and Greece were deep in debt. So, what did the authorities do? Lend them more money! Result? They are deeper in debt at the end of the year than at the beginning of it. Now, their problems are worse than ever.

In America, the year ends with the private economy a little better off and the public economy a lot worse off. Two trillion worth of debt and liabilities were added to federal accounts this year. In terms of federal finances, the average man, woman or child will be about $7,000 poorer when he rings out the old year."