Robert Peston makes a very interesting observation in his artcle 'The New Capitalism'.
One of the best ways of understanding how all our debts were accumulated is to look at the gross foreign current liabilities of our banks. These rose from £1,100bn in 1997 to £4,400bn this year (again, about three times the size of our annual economic output).
This only tells part of the story. If we want to know to what extent foreign investment in our banks has contributed to our UK based debt binge I think the following ratio would be more instructive:
I tried briefly to find the denomiator on google, but coudln't.
Anyone have any ideas where to find it?