Do not forget Britain, all the PPP initiatives have to be paid for, and all that development on the Olympic games all managed by typically fiscally incompetent politicians at a time where private money has dried up. It is going to become very difficult for UK plc over the next 5 years.

Joe, Geelong, VIC Australia

Provided credit is productive: i.e. it adds to GDP by some positive multiplier (3 or more); credit is fine. Problems start when people start confusing borrowings (someone's savings) with capital and fritter the borrowed money away on increasingly over-priced consumer goods including houses.

dhome, sydney, australia

David Nammory is spot on. And it's ironic how all the 'initiatives' being publicised - on rail infrastructure, renewable energy etc - are being announced a decade too late, when there is no money to spend on them. The last throes of a dying government.

Paul, Coventry,

We are all in the same boat. Without credit there would be less consumption and less economic expansion. It is no use banks bleeding their customers dry since ultimately they will also fail. Better to make less profits and and lend at fair rates which we can all afford and have cash to spend.

peter fieldman, paris, france

As people spend less due to higher outgoings, spending dies, industry contracts and jobs are lost. The downward spiral will see no end with government mnisters still announcing INITIATIVES, stupid self serving spending on projets we can not afford, never work and waste huge amounts of OUR MONEY

David Nammory, Liverpool.,

High wage inflation leads to an almost uncontrollable inflation spiral. The correct solution is to increase interest rates, encouraging people to pay off debts and save money. However, this will lead to fewer goods being sold and a slower economy.

Tighten your belts and stop taking massive credit.

Bob Travels, Stevenage,

During past years I did not hear too much about help for savers who were getting a lousy rate of interest.
Double standards all the way.
Always borrowers who appeal for help when times get tough.

nic, paphos, cyprus

what did we expect when we have used our houses as ATM's for the past 7 years and the end of cheap money. The worst is yet to come, credit card debt is going to be the next disaster and banks are going to take more huge write downs onto their balance sheets. They deserve everything that is coming.

Steve, Edgware, UK

The £1.4 trillion debt mountain was always going to be a problem once the access to cheap money dried up.High wage inflation now seems to be the best option.

stephen hulton, eure, france