Many British are happy seeing the problems of the PIIGS, specially Spain

They try to hide their own ruin and forget the fate of many British people living and working in Spain.

The news that M00dy’s will downgrade Spain’s is received with glee by  many British and most American comments on the British press. I commented on this, because they think they can devalue the pound and all will be good with them

Agreed Burntfaceman, the UK is in a hole too but we at least have the ability to control our currency, devalue it and (please no) go for the QE2 UK style option.

I answered:

Haven´t the rich suffered enough? If you devalue their assets and in effect don’t pay your debt get ready for the consequences. I read the other day that private debt in UK is now 1.4 trillion (=1,4 decimal billones, 1,4 x 10^12) and growing. An astronomical number, last time I looked it was 1 trillion. So in effect the UK, the whole of it, has dined on credit and now doesn’t want to pay, the same as Argentina in 2001.
The difference is that Argentina is the size of Europe, just 35 million people or so, and has lots of commodities and managed to came back from its crisis. I don’t think that the UK has the option of selling soy beans and wheat to China, or oil and gas as there’s nothing left for export.

There are hundreds of thousands of British living (and some even working) in Spain, so if Spain’s economy gets worse it is their ruin, too. To some it has already happened.
Better you lend Spain some billions at 3%, it is in your own interest. “we are all in this together!

A kind and well-informed British gentleman agreed with me

I read the other day that private debt in UK is now 1.4 trillion (=1,4 decimal billones, 1,4 x 10^12) and growing.

That’s correct:

Sovereign Debt: £900bn
Household Debt: £1,4tn
Non- financial sector corporate debt: £2.2tn
financial Sector corporate debt: £3.4tn

(excluding liabilities)

The household debt probably wont mature too quickly because a lot is secured mortgages.

The non-financial corporate debt is the most worrying – much of it is on 10year bonds that will ripen in 2012 and beyond.

☼ Eh, Zapatero !  Thanks for nothing.

,,

Por Armando

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