UK on the brink of complete collapse

I keep on criticizing very harshly the US for their political leaders and policies of the Fed, but let's not forget that the UK is in a far worst shape than the US, and that Gordan Brown and Mervyn King are far more dangerous than even the Bernanke/Obamas they've got on the other side of the Atlantic.

You want to read these two posts to refresh your memory:

• 2009-03-26 The UK getting closer and closer to collapse
• 2009-03-27 Gordon Brown: The devalued Prime Minister of a devalued Government

Now here are two quite worrying pieces of information published by Bloomberg:

April 23 (Bloomberg) -- U.K. government support for the banking system has risen to 1.4 trillion pounds ($2 trillion) and may climb higher as the financial crisis spreads to building societies and economists warn lenders may need more aid.

Prime Minister Gordon Brown’s government yesterday offered to guarantee some mortgage-backed bonds, adding as much as 50 billion pounds to the bailout that began with the collapse of Northern Rock Plc in 2007. The amount invested in, loaned to or pledged to back bank assets now equals Britain’s gross domestic product, or 22,800 pounds for every person in the U.K.

The 1.4 trillion figure doesn’t count government pledges to stimulate the economy.

April 23 (Bloomberg) -- The U.K.’s plan to sell a record 220 billion pounds ($318 billion) of gilts this year to revive the economy may cause investor “indigestion,” according to some of Britain’s biggest bond traders.

The amount, 50 percent more than the 146.4 billion pounds sold in the fiscal year that ended March 31, may be too much for the market to absorb, according to Royal Bank of Scotland Group Plc.
[...]
“The U.K. is mortgaged up to the hilt,” Paul Day, chief market analyst at MIG Investments SA, said in an interview from Singapore yesterday.

Now, it is fortunately still time to take your side and maybe protecting the remaining little value that is still given by the market to your GBPs. I am short the GBP against the EUR and long Gold and Silver.