Vince Cable drew attention yesterday to the serious situation developing in the U.S. He described the Republican Tea Party people as nutters and went on the claim that this was potentially far more serious for the UK than the drama in Euro land. You may not agree with the nutters bit, but his analysis is spot on.
Any problems with American debt will hit those countries who have lent it most, worst. Top of the list is China with $1.1 trillion. Second is Japan with $0.9 trillion. Third? Yes. The UK with $0.35 trillion. In old figures this is a staggering $ 350 billion. This is why the UK is so closely tied to the US economy. It is not just that there are many business links. We are the third highest owner of American debt in the world.
We cannot afford for this to all go pear shaped. Time for phone calls from Numbers Ten and Eleven Downing Street. The moment has come for some straight talking.