Financial Crisis

biffvernon · Post by **biffvernon** » 06 Jan 2009, 19:41

Private spending is on rubbish like plastic tac and lager whilst government spending is on culturally enhancing benefits such as health, education, public art and fine parks.

(Or was that just the government in Ba-Ba the Elephant?)

Totally_Baffled · Post by **Totally_Baffled** » 06 Jan 2009, 19:45

We will be paying back the debt for 30 years...if we're lucky.

Some sombering numbers, even by the governments own numbers we will have a public debt of £1 trillion by 2015.

Look at the graph below, since 1990 the largest budget surplus we have ever run in one year was circa £10 billion (year 2000).

So even assuming repayment of £10 billion per year its going to take 100 years!

Its going to take 60 years to pay the debt back down to 2007 levels!

RenewableCandy · Post by **RenewableCandy** » 06 Jan 2009, 20:51

Erm...if HMG are in debt, who's the creditor? Banks? Ourselves??

Totally_Baffled · Post by **Totally_Baffled** » 06 Jan 2009, 21:02

Going back to the graph - its amazing 2002 - 2007 each year the government ran a deficit!

Those were the 'boom' years!

LOL

Gordon Browm - the prudent chancellor - "No more boom and bust"

Result - biggest recession forecast for 2009 since 1946!

Nice!

skeptik · Post by **skeptik** » 06 Jan 2009, 21:03

RenewableCandy wrote:Erm...if HMG are in debt, who's the creditor? Banks? Ourselves??

Anybody who owns gilts. You, your pension fund, a foreign sovereign wealth fund, etc, etc.

http://en.wikipedia.org/wiki/Gilts

oilslick · Post by **oilslick** » 06 Jan 2009, 21:23

biffvernon wrote:Private spending is on rubbish like plastic tac and lager whilst government spending is on culturally enhancing benefits such as health, education, public art and fine parks.

(Or was that just the government in Ba-Ba the Elephant?)

All I can say is

skeptik · Post by **skeptik** » 06 Jan 2009, 22:25

We will be paying back the debt for 30 years...if we're lucky.

The true extent of Britain's debt

Excerpt:
How much is Britain’s true national debt? Gordon Brown says 37% of GDP, the ONS says 43% of GDP – but this is just government debt. The reason Britain is in so much trouble is that our corporate and household debts are huge. It is the combination that makes us such a credit liability – but no one has ever put together a combination.

Until now.

-------
... listening to "Easy Money" from the album "Lark's Tongues in Aspic" by King Krimson. Seemed appropriate.

biffvernon · Post by **biffvernon** » 06 Jan 2009, 23:05

Why do folk keep mentioning Gordon Brown, as if he's the only one responsible for the global financial situation?

snow hope · Post by **snow hope** » 06 Jan 2009, 23:05

My pension fund is currently in Govt Gilts, Bonds and Corporate Bonds - what impact does the high amount of Govt debt have upon this fund do you think? I may need to make a decision whether to stay or to move into something else - I was thinking of Fixed Interest Cash, but I think I missed the boat on that one!

snow hope · Post by **snow hope** » 06 Jan 2009, 23:07

biffvernon wrote:Why do folk keep mentioning Gordon Brown, as if he's the only one responsible for the global financial situation?

Mainly because he has been the Chancelor of the Exchequor / Prime Minister for about the last 11 years! So he has played a major role in the Finances of the Govt and the country.

See the bottom line of my signature! Irresponsible or what!!

biffvernon · Post by **biffvernon** » 06 Jan 2009, 23:09

But only the Chancelor of the Exchequor / Prime Minister of one little nation off the west coast of Europe. The situation is global.

JohnB · Post by **JohnB** » 06 Jan 2009, 23:26

I agree it's a global problem, and every major country has to take some of the blame. But surely someone who claimed to be as prudent as GB should have questioned whether we were running into problems, and done what he could to avoid the worst potential effects of globalisation, rather than jumping in head first.

jomtones · Post by **jomtones** » 06 Jan 2009, 23:32

IMO he was just running with the gang... business as usual, 'creating wealth', or so they thought. That Spectator link is pretty heavy, skeptik! :/

I'm amazed the U.S. is so free from 'external' debt, I thought they were waist-deep in it?

chrisc · Post by **chrisc** » 07 Jan 2009, 00:17

jomtones wrote:That Spectator link is pretty heavy

Yeah, shame they didn't include Iceland and Ireland -- I wonder how the UK debt compares to theirs...

DominicJ · Post by **DominicJ** » 07 Jan 2009, 08:28

whilst government spending is on culturally enhancing benefits such as health, education, public art and fine parks.

Items that are so important to people, you have to jail them for refusing to buy them from the government.

But only the Chancelor of the Exchequor / Prime Minister of one little nation off the west coast of Europe. The situation is global.

So?
Everyone joined us in our quest for a credit boom.

Brown was responsible for the UK economy for the last 11 years, if he ran it so well, why do we care what the rest of the world is doing?