Britain has its back against the wall to an extent unparalleled in its peacetime history. In all the other financial struggles we have faced – the currency crises of 1931, 1949, 1976 and 1992 – we could fight our way out by belt-tightening and devaluing the pound within a structure of secure trading relationships, anchored first by empire and later the EU.
Our international assets exceeded our liabilities by a huge degree. Our national debt was well structured, built on long-term bonds whose servicing requirements were always manageable. We retained great industrial strengths. We were fundamentally creditworthy. Even when the financial crisis broke in 2007/8, the low national debt meant the country could put its balance sheet behind its banks and bail them out.
