Who will fund Britain's huge new debts?

Darling's budget was the expected mishmash of meaningless fiddles except for the finally admitted facts of some of the coming huge indebtedness, of which this blog has been warning for years. The Government of warped spendthrifts must now sell this debt in gilts. What premium will be required for the growing exchange rate risk by non-sterling residents. Are there any sterling residents likely to be able to fund this huge debt mountain forecast to grow, with accumulating interest, year after year after year into the mists of the future? Of course there are not, and if any there be they will be long gone before the higher taxes bite so too will require an exchange rate risk premium! Thatcher in the early nineteen-eighties, when I returned from the USA to try to aid a recovery in private enterprise, was forced to allow the pound to slip to near parity with the dollar and let interest rates rise towards twenty per cent before the fiasco of the previous Labour administration could even begin to be put to rights. The 1.5 per cent cut in VAT is the worst gimmick, obviously designed to push the MPC of the Bank of England into a further interest cut to remain in effect solely for the period of the run-up to the next General Election. The longer term reality is higher taxes, interest rates and never-ending grinding poverty well into the foreseeable future.