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2.000,000,000,000 uk debt bomb-wow!

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posted on Feb, 19 2009 @ 03:46 PM
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Yep folks that is a whopping 2 TRILLION POUNDS that our wonderful government has managed to rack up.Welcome to the uk's ten year or more depression.Has'nt Gordon done an excellent job in screwing us for years to come.And if you want a real laugh he thinks the economy will pick up in a few months-what planet is this great leader of ours on?;




posted on Feb, 19 2009 @ 04:01 PM
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'a weak currency is a sign of a weak economy, which is the sign of a weak government' - Gordon Brown



posted on Feb, 19 2009 @ 04:15 PM
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Where did you get that info from??

See, not a one line post.



posted on Feb, 19 2009 @ 04:16 PM
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It deffo aint gonna get any better for at least 2/3 years by which time im sure WW3 should have kicked off and probably wont have hit half time by then either.

Guardian
Bank bail-out 'could send national debt soaring by £1.5 trillion'



The government's rescue of some of Britain's biggest banks will more than double the national debt at a stroke after government statisticians decided to classify Lloyds and Royal Bank of Scotland as public corporations. Their liabilities – up to £1.5tn – will be added to the taxpayer's balance sheet.

That could push the country's debt levels up to 150% of national income, from a three-decade high of 48% now. The public sector net debt has already been swollen by £90bn of Northern Rock liabilities and, as of yesterday, £50bn of Bradford & Bingley's liabilities. But the two latest additions, which the ONS estimates could total between £1tn and £1.5tn, would dwarf those.


I'd just reccomend getting what ever debts paid back as soon as possible, if not there could well be a day when someone nocks at our doors and claims there property for the debt, and thats you, me and everyone else son.



posted on Feb, 19 2009 @ 04:18 PM
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Originally posted by uk today
Yep folks that is a whopping 2 TRILLION POUNDS that our wonderful government has managed to rack up.Welcome to the uk's ten year or more depression.Has'nt Gordon done an excellent job in screwing us for years to come.And if you want a real laugh he thinks the economy will pick up in a few months-what planet is this great leader of ours on?;


I think you should ultimately thank BUSH
he never had his head in the game...



posted on Feb, 19 2009 @ 04:30 PM
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Jim Rogers UK will go bankrupt

www.youtube.com...



posted on Feb, 19 2009 @ 04:40 PM
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What I can not understand is this - if the govt. has bailed all these banks out with "our money" then where did it come from and why did we all have to keep paying more and more taxes previous to this mess . Why did we all not get a tax rebate last year , for instance , if all this money was in the coffers . I am seriousley considering going on the dole for the first time in my life after working for 40 yrs . Why not ?



posted on Feb, 19 2009 @ 04:55 PM
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Controlled demolition.

Gordon's in over his head. Probably doesn't even know who's pulling the strings.



posted on Feb, 19 2009 @ 05:00 PM
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reply to post by longdog
 


the government does not spend money like we spend money.. when they say they will use "1.5 trillion pounds/dollars/euro's" they will hold treasury auctions to have investors "buy the debt" .. loaning the government money for a small % return.

If the government cannot obtain the money through these means, it can create money, using the Inflation as a tax -- devaluing the Dollar/Pound/Euro/Whatever to create more of that currency to fund the "projects" -- the effect of the devaluing is then felt by the consumer. From 2001-august2008 the US used a Inflationary Indirect Tax to fund a good portion of it's operations, causing the dollar to drop roughly 30% in that time frame.. while the Euro and Pound where at all time highs, which of course caused all kinds of problems associated with our F'd up market.

Quite complex.. but it's nothing to do with "cash lying around" ..



posted on Feb, 19 2009 @ 05:35 PM
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Hi Rockpunk ! I'm not an economist , far from it . Your first paragraph said that the govt gets a percentage then where is all that percentage money from over the years if, as you say , it is not money lying around ? In my simplistic thinking - it either is taxpayers money or it is not . Regards , matey.



posted on Feb, 19 2009 @ 05:49 PM
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Bedtime for me ! Keep threadin' . g'night .



posted on Feb, 19 2009 @ 07:26 PM
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The percentage that the Government pays to bond/treasury holders is paid through the Federal Income Tax. Before the "bailouts" the Federal obligations from Income taxes to pay the debts was I believe in the 20+% range of the total revenue. This is of course to pay for matured debt, 1yr 10yr 30yr notes etc.

The excess money from Federal taxes is used to pay for the National Budget, what we spend our money on. After our debts are taken care of, and we make our budget, the difference is then made up through another sale of debts. This new debt covers the Black Holes in our budget sheets, so we remain in operation.

The compounding of national debt is the worrying problem.. if we continuously spend through debt our national obligation to the debts increases every year, of course, depending on maturity of the debts. One year it's 20%, 23%, 25%, 30%, (actually increases at a much lower rate normally, by fractions of percents) ..

When we add massive debt onto the balance sheet of our government, we risk defaulting on the loans given to us through the securities holders we sold to.

If we add $150 billion here, $700 billion there, add another $800 billion, plus the various obligations through the FDIC and Federal Reserve, like Back Stop loans etc... the next years revenue, a huge portion is going to pay back the loans..

In a depression, when unemployment is higher and corporate profits are sometimes nonexistent, the Federal Revenue drops dramatically.. (and states, insert Kansas, California, Michigan etc) and thus a much larger portion of the Federal Revenue has to go to paying the debts .. which leaves a significant hole in the budget that has to be filled with .. you guessed it .. more debt. It honestly is not that much different then a typical Ponzi Scheme.

Eventually, either we find a way to raise revenue, cut spending and stop using as much debt ..

Or we default, some time down the road..

Or peoples and entities stop buying our debts. Which is just as bad.

The Government CAN and DOES print money from nothing, but the rate at which money is simply printed is pretty stable.. (actual cash) .. this keeps the dollars value stable and thus the economy.. If we printed dollars to pay the debts, the effects of hyper inflation would destroy the economy. Likewise, if you cannot maintain the proper levels of inflation (roughly 3-5% in past years) then deflation occurs.

If we could just push the "Easy Button" and *poof* trillions of dollars appeared, to pay for all these bailouts and everything else we waste money on, the Dollar would cease to exist. Well. It would exist, just in very, very large denominations.



posted on Feb, 19 2009 @ 07:44 PM
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Originally posted by longdog
What I can not understand is this - if the govt. has bailed all these banks out with "our money" then where did it come from and why did we all have to keep paying more and more taxes previous to this mess . Why did we all not get a tax rebate last year , for instance , if all this money was in the coffers . I am seriousley considering going on the dole for the first time in my life after working for 40 yrs . Why not ?



It's called mortgaging the future of the British people. Basically the government will probably leverage the debt accrued on future generations.

This was done with the Lend Lease programme of WW2 and the loans borrowed from the US to finance war. We finished repayments on these debts only five years ago.

You may ask where is the money going to come from seeing that the financial markets are no longer lending. Well Brown is going to do two things; he will start printing money and he will try to convince everyone that it will be resolved by positive future equity or he will sell UK debt to foreign investors, perhaps the US, and use these takings to pump in money into the economy and service the interest and the interest on the interest of the debt being repaid to the investors. You can't do both.

The ultimate option is to devalue the currency and screw the rich. I don't think vested interests will tolerate this.



posted on Feb, 20 2009 @ 09:32 AM
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Learnt today that the 2 trillion national debt is equivelent to 33,000 pounds for every man,woman and child here in the uk.I'ts frankly mind -blowing.



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