With the UK government continuing to borrow and spend at record amounts — with British government debt increasing each month, where the man on the apocryphal Clapham Omnibus may be under the mistaken impression that it is decreasing each month — James Turk has predicted that the ongoing financial profligacy of David Cameron’s government could be the trigger of the next Lehman-style financial crisis.
Turk, the author of The Collapse of the Dollar and How to Profit from It, makes this prediction in the following King World News interview:
In the context of an absorbing and interesting interview, here’s what James Turk says just after 15:40 on the clock:
[John Redwood succinctly explains this growth of UK government borrowing and spending, and the difference between deficit and debt, in an excellent blog piece which should be read by Clapham Omnibus travellers everywhere.]
“…When I talk about the next crisis being another Lehman event, the catalyst does not necessarily have to be a bank. It could be the state of Illinois, it could be the state of California, it could be any one of a number of different governments around the world. Just look at the balance sheet of the UK government and the fact that they’re continuing to borrow and spend. Their deficit is not getting any narrower…They’re continuing to borrow at record amounts and piling on record amounts of debt. Maybe the UK government is the catalyst or the collapse of the UK bond market could be the catalyst that causes this Lehman-type event that I’m expecting in the first half of 2011? You can never predict what the trigger is…”