The UK's public sector expenditure has reached an all-time high, as figures published on Monday reveal. The British pound went into freefall after the figures were published. In reality the government's debts are even larger than announced, the conservative daily Neue Zürcher Zeitung contends: "If the state had a company accounts department it would be looking at debts of between 2,700 billion and 4,000 billion pounds, and that's not counting the guarantees of 1,000 billion pounds to 1,500 billion pounds for the banks rescued during the financial crisis. The effective debt amounts to a horrendous 186 percent to 277 percent of GDP, several times the net debt published. In this context it's understandable that new Chancellor of the Exchequer George Osborne has announced a wage freeze and a re-examination of the generous pensions of public sector employees. The public sector, which became over-inflated under the New Labour government, can no longer be financed." (21/07/2010)
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