The UK Chancellor of the Exchequer has admitted that the government over-estimated by some £64bn the amount of revenue it would take in when it put together its forecasts back in 2010. No-one has a crystal ball and no-one would expect really accurate figures but £64bn is an awful lot of money to have to find. Oh yes and we need to add that to the £375bn of Quantitative Easing, a.k.a. money printing, that has happened. Politicians are forever playing games and we all know that all they want to do is get re-elected so why would they come out and be realistic about what is owed - wouldn't it be good if some of them did once in a while?
£64bn short in the coming years and only paying off the interest on the £375bn of QE isn't a healthy position to be in. No-one is ever advised to just pay off the interest on their credit cards and certainly not to take a cash advance on one card to pay off the interest on another so why is the government playing such a game with the country's finances? I guess the answer is because they can and the cynic in me thinks that by constantly pushing the problem out to the right it'll be someone else's problem to deal with and those responsible will be picking up 'nice little earners' advising some financial institution or other how to make money out of the government of the day.
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