There is a lot of talk about a debt jubilee and this is a common question today, and is probably part of the long term answer. But the question is; who has lent all this money in the first place. Aside from the banks that create the debt and service it, they own very little.
In fact they own as little as possible; just enough to keep the regulatory boxes checked.
No, the sad fact is that most of this debt is owned by us, you and me.
Some individuals own directly, but mainly by exposure through our pension plans.
According to the FSA in 2009 pension and insurance companies owned around half of the UK issuance of UK government debt, some £288, 000 Million. The FT also noted in March of this year that pension holdings as a percentage of total assets had increased from 7.9% to 12.3%.
So when you hear calls for Greece or any other country to walk away from its obligations, it is mostly our savings they will be walking away with.
