The Blog has been favoured with another communication from Mrs Badger. Welcome back ma’am. She writes:
“Dear Editor,
I got very excited watching the Victoria Wood video which you so thoughtfully provided, and naturally my thoughts turned to disappointing or non-performance and thence to the problems facing the US economy and this Fiscal Cliff thing.. It is so long since I worked in the City that I haven’t the faintest notion of what it’s all about. Could you enlighten us please?
Certainly my dear. Imagine a household budget:
Annual family income: £21,700
Money the family spent: £38,200
New debt on the credit card:£16,500
Outstanding balance on the credit card: £142,710
Total budget cuts so far: £385
To put this into perspective for the US economy, simply add 8 noughts to each of the above numbers, and substitute “USA” for “household”.
Easy. Now can anyone come up with a solution? The UK and European situations are not so different.