Sunday, February 20, 2011

Niall Ferguson: USA could collapse. What about UK?

In the video below Prof Niall Ferguson of Harvard University is explaining why the US could collapse under the weight of debt it has. The collapse he argues would be akin to the collapse of the Soviet Union which buckled under the weight of the Afghanistan war.

Given that the UK has bought $250m of US debt. Some argue that this is a currency where the US and UK print new money and buy each other's debt to make themselves look solvent.

All this raises the question that if the US could well collapse then isn't the UK in exactly the same postion? And if a Harvard professor is talking about the US becoming a failed state then why does the US have AAA ratings? Are the ratings agencies captured?

All this is should say one things to Scots. Demand powers of your taxes and prepare for a new currency!

3 comments:

cynicalHighlander said...

The US Today: What Happens When You Let Investment Bankers Run a Country

And I hear that Iceland is having a referendum about paying us £5 billion, interesting times.

Mr. Mxyzptlk said...

Why should the UK worry we have North sea Oil,Gas worth trillions and trillions and trillions.

All we have to do is make sure the Nationalist never get in a position of real power.......

So far So good!

Key bored warrior. said...

Mr. Mxyzptlk said...


"Weeed flub alup jubalup weeeeed."



You may have something there!

I trust it is nothing trivial.