If America wants to know what is the best method to deal with our debts tomorrow, we should watch with eagerness what is happening in Britain today. Many experts have come out saying that the British has accumulated too much debt in the past 24 months, and there may be consequences.

Experts like Morgan Stanley have suggested that the UK has spent too much in the past couple of years in trying to prop up the economy. It has a tremendous amount of debt; its debt vs GDP ratio is much higher than ours here in the US.

Most experts still agree that the UK would not crash as yet; but an outcome would be that her currency , the Pound Sterling, would have to be weakened . While there would be many businesses that rejoice at that news, it is not all that rosy.

For one, a weakening of the pound would mean a rise in inflation for the local Brits. Imported goods would cost more. Most of the products made in the United Kingdom are, like most countries, made in China. So there would be a rise in prices in Chinese products.

We here, across the Atlantic should take note. While our debt vs GDP is not as bad as it is for Japan, India, Italy or the United Kingdom, we still have more debt than all of them put together. We still have got issues to sort out, like our lack of tax income and our terrible health care problem. We are still borrowing more and more money from the Chinese. A few bad moves in the next few years might make us experience the bad outcome before the United Kingdom.

Of course there are advantages with our system. For one, if we want to, we can virtually produce everything in America. That is something that the United Kingdom can only dream of. Technically speaking, if we lower the value of our dollar, companies would be more interested in opening factories and production centers in America. We have the resources as our country is huge, the United Kingdom does not. Also with full employment as the result of the factories, there would come the demand which would strengthen the dollar back to what it is supposed to be in the long run. We do have a juggernaut of an economy that is much larger than the Brits’.

That being said,football games are not won on paper. We need to play the game well to win. In this case, anything could go wrong; from bad leadership to counter measures by the Chinese. There are lots of things that could happen.

So it is very essential that we sit back and watch how the British handle their debt problem. If they do it well, we should model ours based on their techniques. If they screw up, we should learn from their mistakes and avoid making them. It is something that is very important for the future of our nation.

We should do our part as a people and read up on the situation. We should be keen about what is going on over there. In that manner, we can vote the person with the right solution into power.

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