My publication of a chart on UK government debt ratios seems to have started some debate.
One of the myths is that it is private debt that is the problem in the UK. I turn to Steve Keen for clarification. This is from his blog, with sources noted:
Let's be clear in that case, the problem is not government debt. Nor is it especially household debt because we have high levels of very long household debt in this country diue to mortgages which distorts ratios. The problem is our finance system.
And that's why we need to tackle that issue as a priority.
We could start with a financial transaction tax.
We should also be tackling tax havens - which act as the UK's agent for peddling this debt.
And we need to split banks.
And then increase capital ratios.
And then we might make some progress in containing o0ur debt issue. But we won't unless we do all those things.