Here is who you solve the debt.
You set up a Bank of Britain.
Under the rules of Fractional Reserve Banking you put half a trillion pounds into that bank from the Bank of England.
Then you expand that money by a factor of ten so it becomes 5 trillion pounds.
You then inject that excess capital into creating a new manufacturing and industrial base in Britain such as new coal mines, coal liquefaction and electricity generation plants, infra-structure renewal projects to increase productivity and efficeincy for business, green energy projects, new scientific and technical universities etc to create a whole new Industrial Revolution.
The money from the Bank of England and held in the Bank of Britain is a long term project guaranteed by government, so bonds can be sold to private investors to also raise private capital to be held in the Bank of Britain.
The pensions debts can be offset by the money in the Bank of Britain and as the nationalised banks go back into profit this is used to pay off the debt owed to the Bank of England, whilst tax income from the new industrial projects is used to pay off the debt to the Bank of Britain.
Government urged to reveal 'true' national debt of £4.8 trillion
The Institute of Economic Affairs (IEA) has calculated that the national debt is £4.8 trillion once state and public sector pension liabilities are included, or £78,000 for every person in the UK.
By Philip Aldrick, Economics Editor
Published: 7:33PM BST 20 Aug 2010
Stacks of £50 notes
Stacking up: the national debt equates to £78,000 for every person in Britain Photo: GETTY IMAGES
The IEA raised its concerns after the latest public finances data from the Office for National Statistics (ONS) this week, which showed that the total debt, excluding bank bail-outs, is £816bn – itself a record high. However, the figures strip out the state's pension liabilities in a contravention of standard accounting practices.
Mark Littlewood, the IEA's director-general, said: "The latest official national debt figure is seriously misleading. Looming in the background are pension liabilities. These should be moved to the forefront.
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"The ONS should include these liabilities in their calculations. It is shocking enough to see official figures revealing a jump in national debt over the last year from the equivalent of 48pc of GDP to 56pc, but the grave reality is that our real national debt stands at 333pc of GDP."
Nick Silver, an IEA research fellow, said the full figure, including the £1.2 trillion public sector pension liability and £2.7 trillion state pension liability, should be published either monthly or annually alongside the net debt data for reasons of transparency.
The ONS has already begun to assemble the data, publishing the full list of Britain's debts and liabilities for the first time in July, which came to a total of between £3.68 trillion and £4.84 trillion.
Aileen Simkins, ONS director of operations on economic statistics, said the figures would be updated in September and that the ONS plans to compile and release them on an annual basis "to begin with".
"We are in no doubt that there is a bigger number that is also relevant to public data," she said. "We think it is important to have more transparency on public sector debt – looking at figures that go beyond standard monthly net debt and include state and public sector pensions."
The ONS numbers included a £1 trillion to £1.5 trillion liability for the Government's stakes in the part-nationalised banks, equivalent to the relevant portion of their total liabilities, £1.35 trillion for state pension liabilities, and £1.2 trillion for public sector pensions.