The IMF say English tax payers are facing a bailout bill of £200bn
English tax payers? Face a bill of almost £200 billion pounds for propping up its ailing “British” banking system, the International Monetary Fund (IMF) has said. As MPs give themselves big £-pay rises and bankers give themselves big £-pensions pay off’s and £-bonuses sticking it to the English tax payers?
Its latest Global Financial Stability Report estimated the cost of support measures would run to 13.4 per cent of the English entire economic output of £1.46 trillion in 2008.
Only Ireland would pay more as a percentage of its output to rescue its banks, the IMF added.
The report delivers a fresh blow to Chancellor Alistair Darling on the eve of tomorrow's Budget, which will unveil soaring public debt and the worst year for the economy since the end of the Second World War which this “British government incompetence’s have caused?
England’s (British) banks would also face a $200 billion (£137 billion) hit over the next two years as bad debts soared, the IMF said which is all down to the governments miss management of England’s funds.
Overall global losses could total $4 trillion (£2.7 trillion) by the end of 2010 as growth declined, it estimated.
"The global financial system remains under severe stress as the crisis broadens to include households, corporations, and the banking sectors in both advanced and emerging market countries," the IMF warned.
The huge rise in borrowing to fund bail-outs has seen the cost of insuring against governments defaulting on their debts rise - with the English more affected than other large economies, the IMF said.
Mr Darling faces pressure to plot a long-term path back to health for the public finances in tomorrow's Budget, in particular to reassure the bond markets which will be tapped up for billions to fund higher borrowing but like all British politicians he can not be trusted and will lie to cover this governments colossal mistakes.
"In order to address investor concerns, governments need to clearly communicate the potential costs of financial support packages as part of a sustainable medium-term budget framework, including a credible commitment to fiscal correction once economic conditions improve," the report warned.
The IMF added that the crisis would require "far-reaching changes" in the shape and functioning of financial markets and a toughening-up of regulation.
"Since neither market discipline nor public oversights were sufficient to properly assess and contain the build-up of systemic risks, improved financial regulation and supervision is key components to preventing future crises.
"The emphasis should be on how to detect and mitigate systemic risks through better regulation," it said.
Shadow Chancellor George Osborne said the IMF estimates showed the "potentially massive cost of Gordon Brown's utter failure to regulate the banking system" and St Michael’s is in full agreement for a change with Mr Osborne
"Gordon Brown told us last autumn we would be making money out the bailouts. This couldn't be worse news on the eve of the Budget.
"It blows apart the myth that England was better prepared for the recession than other countries," he said.
You couldn’t believe the “Lords prayer” from Brown or any of his corrupted government
