From Bloomberg
''To start with, devaluation is not an alternative to sovereign default. When a government decides to devalue, savers who trusted the currency to store their wealth, and creditors who bought bonds denominated in the currency, find the value of their assets cut. That’s sovereign default by a different name.
Official net U.K. debt excluding the effect of financial interventions such as bank bailouts is about 1 trillion pounds ($1.57 trillion), or 36,000 pounds per household. A recent analysis of U.K. pension accounts by Ros Altmann of Saga Group Ltd., an enterprise focusing on financial services for those aged over 50, estimated that the 5 trillion-pound to 7 trillion- pound cost of U.K. unfunded state pensions amounts to at least an additional 180,000 pounds per household. The U.K. government must either default or modify unfunded promises if it is to resolve those debts. Devaluing the pound would be one way to achieve that.''
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