Wednesday, 30 March 2011
So This Is How It Ends ?
I have been on the phone this afternoon to a colleague who was telling me the reality of what happens when a country is slowly 'going bust'.
This week (and it is only Wednesday) the local tax office have telephoned his accounts department and asked for a meeting. In the UK you know this usually means trouble, however the meeting was to ask if there was any possibility of paying their equivalent of National Insurance early because the Government has run out of money.
Then this morning he received a letter from their VAT office saying that the Government cannot actually afford to pay a refund this month can they wait ?
The State concerned is probably going to be unable to pay its employees and benefit claimants on Thursday, unless the German taxpayer is prepared to dig deep.
We are avoiding this situation at present by two means, quantative easing (printing money) and massive borrowing.
Those marching on saturday under Unite's and Unison's banners have no idea of economic reality, because they work for the State and have an 'entitlement' to be paid first.