The repayment of the National Debt will take many many years. What matters most is that the plan for cost savings combined with tax take to repay the c200bn excess debt (as last recorded in September 2009, above the 40% GDP target and net of financial sector support) is believable to foreign investors, not just doing it in just a couple of years. Slamming the brakes on economic growth with sudden reversal of rate cuts and QE is just not going to happen, period.
Keeping rates low and plenty of QE in the system for quite a while to stoke up growth (increases tax take), inflation ( deflates national debt) and property prices (protects banks' balance sheets) is most likely the plan.
This news story has come from the property investment blog by Stuart Law, CEO Assetz plc.
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