The ability to service debt

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The large deficits that we are currently seeing in the UK economy, thanks to the UK economy, make the possibility of the UK economy becoming the equivelent of Iceland almost impossible.

The ability to service debt

I have just been reading a Times columnist, the Business Editor, who is seeking to explain why it is that the UK will not be the next Iceland. The reason why I highlight this article is that it seems to express the profound denial of the reality of the situation.

In his introduction he has the following to say:
The economy is in a bad way and government finances are in an awful state, but let’s get a sense of perspective. The City is not Reykjavik on Thames. Britain is not Iceland. Sterling has fallen a long way and may fall further. But Britain is not bankrupt.