The news in the UK reporting that 10 Downing Street is planning on selling "non-core" government assets to make up for a budget shortfall. Currently, the Brown government is running a budget deficit and is struggling to find ways to meet that difference between revenues and outlays. The sale also was to meet the rising demand to deal with their debt. One way, the government proposed today, was the sale of assets ranging from stakes in businesses to looking at it's real estate portfolio that was valued at £220 billion .
This also comes into play with a concerted effort to reduce government spending. I cannot help but think that what we're seeing in the United Kingdom is a future mirror of what will happen here.
The plan is to sell a "portfolio of non-financial assets" held by Whitehall and local authorities over the next two years.
They will include the Tote bookmakers, Dartford crossing, the student loan book, the Channel Tunnel rail link and - having protected national security - the government's stake in Urenco.
This is a European uranium consortium, in which the government has a 33% stake. It supplies equipment to enrich uranium for the nuclear industry.
The government will also sell surplus real estate which is part of the £220bn owned by its departments and agencies.
- excerpt from "Government's £16bn sale of assets", copyright 2009, BBC
How long until we have to start selling major assets here in the US? Our deficit is now in the trillion area, our national debt is a multiple of this. The proposed government spending ranging from health care initiatives to our military operations will simply add to this. Now, I agree, some spending needs to be done to alleviate against the current economic crisis. But unless we get our house in order, we won't have any money at all to help anyone in this country!
You know, at the risk of proposing "economic fiction" on here, it would be nice to see a post on what it is the US federal government could sell. The federal government owns a lot of land, not to mention a host of other assets. Robert, my good man, you know where this government and the nation is headed, with all this debt having been accummilated by the public and private sector. One can only think the mother of all fire sales is coming. Like I said, it is bordering on economic fiction, in fact, it just may be and we're aware of the rule against such things. Still...one can't help to wonder.