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[Scythe13]

The 70.7% is the internal debt to UK based organisations. Its a very clever wording system.

The National debt to foreign countries, is not the 'national debt' based on guilds and government bonds.

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The standard system for when a government wants to raise capital is to sell gilts. These are basically the same as bonds.

It's a promise to repay the amount plus interest a certain time in the future.

Let's say SD wants to raise £1000.
NR buys a gilt at 4% over 10 years, paying £500 to SD.
BP buys a guilt at 7% over 18 years, paying £500 to SD.
Now SD has his £1000. Providing he pays NR and BP in time, it's all good.

Now, this is where it gets interesting.

The IMF have given money to the UK which has then been given to the banks. The IMF charges the UK for the money. The UK charges the banks. As far as the accountant are concerned, SD has £1000 in cash as an asset, but has £1000 in liabilities as bonds to NR and BP. All in all, SD is cash neutral to the accountants.

So, the true numbers quoted are...sperious, at best.

It's called creative accounting. All good organisations are good at it.