telegraph.co.uk > Inflation: next year's ticking time bomb

[Mackin USA]

Britain has been living beyond its means, borrowing from foreigners on a grand scale to fund consumption that could not be justified by gains in productivity, and enjoying cheap imports at artificially depressed prices. Such was our fool's paradise.

The smoking gun is the current account deficit, which has been running near 6pc of GDP, the worst in peace-time since records began in the late 18th century.

Y'all must have learned this from the USA 

[Rupert]

Yup....  we need some inflation to get that debt down...   

So which foreigners exactly?  I often wondered that.  If we don't pay it back, what happens?

[ukgimp]

As a nation, we are fucking idiots.

[ergophobe]

Yup....  we need some inflation to get that debt down...   

In the US, it has traditionally been whoever wants us to buy their exports. So China has been the leader, but Japan and I believe the Saudis bought a lot of US debt in the past. I'd guess in the UK, if you look at who has the biggest trade imbalance, I'd bet they are the biggest buyers of your debt

[Mackin USA]

Just to ADD a little Holiday Cheer:

Eisman warns that Europe and its banks 'are still screwed'

Apart from non-performing loans and regulation issues, sovereign bonds are another concern in Europe, Eisman warned. "What is very negative is that in every country in Europe, the largest owner of that country's sovereign bonds are that country's banks," Eisman also said. This means that if the price of those bonds goes down, the balance sheet of the bank deteriorates.

https://beta.finance.yahoo.com/news/next-big-short-eisman-warns-102338095.html