Labour's farewell letter exposed , "Is not money left"

Labour's farewell letter exposed , "Is not money left"

www.dailymail.co.uk

'When I arrived at my desk on the very first day as Chief Secretary, I found a letter from the previous chief secretary to give me some advice, I assumed, on how I conduct myself over the months ahead.

'Unfortunately, when I opened it, it was a one-sentence letter "Dear Chief Secretary, I'm afraid to tell you there's no money left",

(visit the link for the full news article)


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Well I guess now we will find out how dip the financial troubles in the UK are, today in CNBC the topic was how deep the troubles are for the UK and how much of the financial debt and debt commitments where hidden in the closet.

But doesn't the UK can print money like the US? I am no sure of how the currency in the UK works but I believe is like the US, they can print money under financial troubles?

www.dailymail.co.uk
(visit the link for the full news article)

[edit on 17-5-2010 by marg6043]

My first urge is to laugh, but then after a moment, it settles in, this is not so funny.

This is serious, far more than a lot of people realize, but I know you know this, Marg.

I don't know if they can print money like the US does, but it really won't matter because the whole house of cards is swaying in the wind. It is getting close to the time it wouldn't matter if they could.

I thought it was funny (and honest)

and we can do all the printing like the fed... quantative easing anyone I think there is still £25bn left to spend before they up the capped figure, currently I think it is at £200bn.

Tho in other news, the Gov have created an independent body to oversee fiscal responsibility.. As Labour have told a few fibs to hide the troubles we are in.. not sure how that works as yet..

Be interesting to hear what the new budget will outline in June..

Interesting times indeed


[edit on 17/5/10 by thoughtsfull]

As bas as this sounds now UK. You can come out of this ok.

It sounds very similar to a situation we had here in Australia when the Howard government took office from the Keating government.

Basically there was a $10 billion black hole in the budget and we didn't have any money.

But we saved and did what we had to do and the economy was in surplus by the time Howard left office.

Originally posted by belial259
As bas as this sounds now UK. You can come out of this ok.

It sounds very similar to a situation we had here in Australia when the Howard government took office from the Keating government.

Basically there was a $10 billion black hole in the budget and we didn't have any money.

But we saved and did what we had to do and the economy was in surplus by the time Howard left office.

I'll be honest, I was/am dissapointed that the Labour Gov made no effort to create the wealth it needs to repay these debts by investing in the UKs failing infrastructure..

My hope (albeit slim) is that the new lot will decide that's the best way out of the hole.. create the wealth and not simply raise the taxes...

We shall see..

Originally posted by thoughtsfull
My hope (albeit slim) is that the new lot will decide that's the best way out of the hole.. create the wealth and not simply raise the taxes...

I'd like to see that too. You are a Commonwealth afterall, infact you guys invented the whole idea.

But it does seem the burden is already being pushed onto the average person. Those capital gains tax increases are murderous. 40-50%?

I understand the necessity for it since many landowners in the UK who have second properties for investments are rich investors, and probably foreign. But anyone that isn't a rich investor and just bought a second house to invest for their retirement is going to get gouged.

I'm not aware of the full extent of the capital gains changes. Is this going to apply to the sale of stock and dividends and the like too? Or just second houses?

Originally posted by Libertygal
I don't know if they can print money like the US does...

Depends on what banks you're talking about. Central Banks (like the Federal Reserve) 'print' the money, then loan it to 'public' banks charging interest. Public banks then loan the money to the populace, again charging interest; so it ends up looking like this...

x + y + z = total 'money' in circulation

Where x = the actual money 'in print', y = the interest owed by 'public' banks, and z = the interest owed by public debtors.

Anyone see a problem there? Y and Z are 'owed', but have never been printed; so while public banks don't really 'print' money, they do 'create' money out of thin air.

As to the OP, this should really come as no surprise. London has long been the financial capitol of the world, and with all of the inherent flaws and corruption in the industry it was only a matter of time.

Originally posted by Libertygal
My first urge is to laugh, but then after a moment, it settles in, this is not so funny.

Lol I actually laughed out loud.. and then I saw your post!

We all know that the financial crisis has spread all over the world, but taking into consideration the biggest players on that financial crisis is not surprise that the UK former government was hiding the real state of financial affairs from public eyes.

What I will love to know is exactly how much in the hole the government truly is.

While American debt is open to public scrutiny I believe that we are not told the reality of our real debt either and that administrations that comes and goes just keep that real debt far and away hidden from public eye.

[edit on 17-5-2010 by marg6043]

reply to post by redmage


Yes is just like the US, but this is actually debt that the government itself have accumulated on financial obligations.

Now doesn't the UK sells debt like the US does also?

Because that is how US sells its debt with financial backing in future maturity of bonds.

And due to US good record of pay backs that is what makes our debt so attractive to buy.

But this all comes at the expenses of tax payer and future generations because the debt is on going and getting bigger no smaller.

Originally posted by belial259

Originally posted by thoughtsfull
My hope (albeit slim) is that the new lot will decide that's the best way out of the hole.. create the wealth and not simply raise the taxes...

I'd like to see that too. You are a Commonwealth afterall, infact you guys invented the whole idea.

But it does seem the burden is already being pushed onto the average person. Those capital gains tax increases are murderous. 40-50%?

I understand the necessity for it since many landowners in the UK who have second properties for investments are rich investors, and probably foreign. But anyone that isn't a rich investor and just bought a second house to invest for their retirement is going to get gouged.

I'm not aware of the full extent of the capital gains changes. Is this going to apply to the sale of stock and dividends and the like too? Or just second houses?

I'm not fully versed with the capital gains tax laws, I know a few who have gone down the "buy to let" route are worried.. It will be interesting to see where the initial £6bn in cuts is going to hit..

I'm hoping they realise that an over burdened tax regeme will simply create the spectre we saw in Greece, and the only viable method (aside from War) is to create the wealth required to repay these debts.

I think that is true of all nations who are in this position..

These arrogant NWO politicans and TPTB A-Holes forget one thing.

Joe Blow may end up being totally screwed and penniless by them, but When TSHTF, some of us 'poor folk' know where they live. From their maids, garbage men, waiters, and pool boys ...

...word gets around, and the right people eventually hear things.

Will be funny when their helicopter pilot happens to mention (at 500 feet), "...sir, my grandmother was left homeless because of you"

Originally posted by marg6043

'Unfortunately, when I opened it, it was a one-sentence letter "Dear Chief Secretary, I'm afraid to tell you there's no money left",

Well we knew that but it's a telling insight into the mind of the man who wrote it!!

It seems like an opportune time to be out of government. People actually wonder why labour weren't more interested in forming coalition with the lib-dems.

This brings something interesting to the fore, labour have known they were on the way out since before Tony Blair resigned. Did they actually just sit back and let things unravel to the point where there was "no money left" before dissolving government.

There's a good chance that the members of the new government will be kept out of office for decades owing to the measures it will now have to take to sort things out. This is probably the reason for this locking in of parliament that the coalition has come up with, they're hoping to have made things good before they go.

The idea that a political party could allow tactical ruin of the country for the sake of the party is disturbing but it doesn't sound difficult to believe at this stage, especially from labour, never letting a good crisis go to waste.

When you start to think about it, the party system of government might be a very bad idea for the average citizen.

[edit on 17/5/10 by pieman]

Originally posted by thoughtsfull

I'm not fully versed with the capital gains tax laws, I know a few who have gone down the "buy to let" route are worried.. It will be interesting to see where the initial £6bn in cuts is going to hit..

Well, from what i've read so far, a lot of the savings are going in the right places. The bonuses and extreme wages of the people at the top of the financial, health and government sectors. They've even cut their own wages down I believe, all of which is a good start.

I work in the public sector myself and I'm expecting some hard times, but I do think it's worth it in order to save the economy, although I shouldn't be hit too hard, as I'm nowhere near the top and don't get the rediculous wages that the bosses do, although, you know the old saying... sh*te slides downhill!

[edit on 17-5-2010 by nik1halo]

reply to post by pieman


Thanks for the inside on the news stories, I wonder how the people in the UK feel about this, I wonder also if this is why Brown step down or if it has nothing to do with it.

nik1halo, how the people in the UK are taking the story about the letter or memo in the streets?

Anybody here that is a resident of the EK knows?

reply to post by nik1halo


The issue I have is that if the wealth creation is not in place, then all that is left is to cut services and trim wages.. which is not healthy..

We need the wealth creation, we need to grow our way out of this.. and I am not sure there is anything left that would allow us that kind of wiggle room.

Without the wealth creation we are opening ourselves up for extreme unrest.

This has already been exposed as a joke albeit it of doubtful taste under th circumstances. We seem to be having an emergency budget in a month or so. There will be cuts and tax rises. Any commitments made in the earlier part of the year by the previous administration will be reviewed.

Therer will also be an independent economic review body which should be above the party politics.

reply to post by marg6043


To be honest, i don't think anyone over here is really surprised at this attitude. We all knew that Liebour treated the economy as a joke. I think we're all a bit shocked at just how much money is missing and how badly Labour had been covering it up through the reports coming from the new coalition.

I have to say that I think if any one thing comes from this coallition it will be that there will be more honesty, because each party is going to be keeping an eye on the other, Maybe I'm being a little naive, but it's certain that we're already learning more in the past few days than we ever did over the past 13 years and we're not too happy about it either!

reply to post by Tiger5


Hi Tiger,

Where did you hear that David Laws said this as a Joke?

If it was then it was in bad taste to say it in front of the cameras.

edit: your right, I reread it, Liam Byrne left the note as a joke..


[edit on 17/5/10 by thoughtsfull]