The last time Britain was bailed out by the IMF was in 1976. Talk is now of another bailout looming as the net public debt to GDP measure is worse now than back in 1976.
To back this view up, have a look at the following graph forecasting the position vs Japan. The latter has by far the worse position at over 200% net public debt to GDP, but it still has large industries that can sustain that level of debt, while Britain only has a service sector, some manufacturing and finance. The latter is akin to moving the deck chairs around on the Titanic. And countries like Malaysia make as many cars as Britain does (not quite), while also producing more componentry.
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| Gross Debt as % of GDP |
However, these forecasts, measured on the above graph by a dotted line, have proven illusory. The position Britain finds itself in is as follows.
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| Public Sector Net Debt and Office for Budget Responsibility Forecast |
If the IMF do provide a bailout, spending cuts will be mandated. These cuts in spending will be massive.
Some are saying this is all planned. The collapse is to bring the post Brexit country down.
