Ambrose Evans-Pritchard is the business editor of the Telegraph, a conservative UK broadsheet. In other words a senior figure in a serious newspaper with a sober character. What he writes today is downright alarming.
“I am seriously worried that British government is losing control…The $4.4 trillion of foreign liabilities accumulated by UK banks are twice the size of the British economy. UK foreign reserves are virtually nothing at $60.6bn…We cannot even do what Iceland did to save its skin…The debts are too big. If London takes such disastrous action it will set off global panic and lead to an asset death spiral, drawing the entire world into deep depression.”
“England has not defaulted since the Middle Ages. There is a real risk it may do so now.”