The UK debt.
- Thread starter joe-90
- Start date
Sponsored Links
I don't think Joe has got is head in the sand to be fair,he just has got a different take on what is happening,but no matter what it is, it's not stopped the sun coming up again this morning. So debt or no debt get out and enjoy it.
"Someone asked about government lending, I live in Jersey and we are the only "nation" that would actually fulfil the Euro requirement, in that you must have a positive balance sheet in that you owe less then you lend. Of course that rule was bent upon the Euro inception as otherwise no-one would be able to join it."
I might not have a full grasp of the situation, but is it necessarily that rosy for Jersey either?
Over half of it's GDP comes from "financial services" (which supposedly dropped the rest of us in it in the first place).
If the health of a nation is measured by what it physically produces, Jersey might well be more poorly than many.[/b]
I might not have a full grasp of the situation, but is it necessarily that rosy for Jersey either?
Over half of it's GDP comes from "financial services" (which supposedly dropped the rest of us in it in the first place).
If the health of a nation is measured by what it physically produces, Jersey might well be more poorly than many.[/b]
Nothing to do with Joe having his head in the sand...it's those criticising him!
Sponsored Links
P
Paul_C
I believe that's the crux of the problem. Governments have allowed the banks to operate a fractional-reserve system in which the actual reserve, as a percentage of money lent, has become smaller and smaller over the years. The banks effectively just "magic" money into existence out of thin air in the form of debt, then expect it to be repaid plus interest. The only way such a system can ever be sustained is by the total level of debt increasing at an ever-faster rate.
- Joined
- 28 Oct 2005
- Messages
- 31,282
- Reaction score
- 1,998
- Country
My mate Mervyn King agrees with me:
LONDON - The head of the Bank of England says the world may be facing the worst economic crisis ever — only hours after surprising markets by sanctioning another 75 billion pound ($116 billion) injection into a British economy that's suffering shock waves from Europe's debt crisis.
Mervyn King told Sky News on Thursday that the crisis was the most serious since the 1930s, "if not ever."
He told the BBC that the world economy as a whole is slowing down "much faster than people thought only a few months ago."
The Bank's rate-setting Monetary Policy Committee said it was reviving a program of asset purchases which injected 200 billion pounds in between March 2009 and January 2010 to help lift Britain out of a deep recession.
LONDON - The head of the Bank of England says the world may be facing the worst economic crisis ever — only hours after surprising markets by sanctioning another 75 billion pound ($116 billion) injection into a British economy that's suffering shock waves from Europe's debt crisis.
Mervyn King told Sky News on Thursday that the crisis was the most serious since the 1930s, "if not ever."
He told the BBC that the world economy as a whole is slowing down "much faster than people thought only a few months ago."
The Bank's rate-setting Monetary Policy Committee said it was reviving a program of asset purchases which injected 200 billion pounds in between March 2009 and January 2010 to help lift Britain out of a deep recession.
- Joined
- 28 Oct 2005
- Messages
- 31,282
- Reaction score
- 1,998
- Country
They prefer to call it growth and unless we get cheap unlimited supplies of oil - we won't get growth.
The world economy is a large balloon with a leak - and endless growth (via debt) keep it inflated. No growth - and the balloon deflates. Eventually it crashes.
So why don't they put the money in the consumers pocket where it will be of some use? What deep recession are we out of?
This is what I have been saying about the debt Joe it doesn't exist because they have bought the supposed debt off themselves.
- Joined
- 28 Oct 2005
- Messages
- 31,282
- Reaction score
- 1,998
- Country
The debt was raised against people that had no way to support that debt (sub-prime mortgages). They defaulted but the debt was too big to be cleared by selling the assets - so the banks got caught and needed bailing out. Capitalism is another name for a Ponzi scheme.
We have a common ground on how the banks got burnt, but the money did not disappear it went into someone's pocket,the trailer park owner's who sold the trailers to the people who could not pay back the loan to the bank's etc.The money is there some where.
There are 2 debt problems
1/ private personal debt which mainly affects the Anglo Saxon economies ie UK and USA and this we can blame in the ghastly greedy bankers. They were imprudently lending huge sums of money to people who they knew did not have a hope in hell of maintaining repayments. This for short term profit/bonuses. This caused the original banking crisis.
2/ Government debt, for which it has to be said, when you get down to it, the problem is democracy. Too many european governments, our last lot included,borrowed too much money, why?, In an attempt to sweeten the electorate and garner votes in future elections. This money has to be paid back with interest to banks from which it was borrowed in the form of government bonds or the banks go bust. Then all the domino,s start falling. These Greek, Irish, Portugese,Spanish, Italian and lets face it the British governments know what the solution is. But they do not know how to get re elected after they implement it.
The only answer is severe austerity. Raise taxes, cut wages, cut benefits to a subsistance level. Stop profligate spending, etc. etc. till all our debts are honoured and then with lesson learned start again. But we know none of our democratic parties have the balls to do what is neccessary.
(Just thinking out loud here, I am a democrat) Therefore we need some hard but fair benevolant dictator to take reins and see us through this (Im with Joe here)very scary time.
1/ private personal debt which mainly affects the Anglo Saxon economies ie UK and USA and this we can blame in the ghastly greedy bankers. They were imprudently lending huge sums of money to people who they knew did not have a hope in hell of maintaining repayments. This for short term profit/bonuses. This caused the original banking crisis.
2/ Government debt, for which it has to be said, when you get down to it, the problem is democracy. Too many european governments, our last lot included,borrowed too much money, why?, In an attempt to sweeten the electorate and garner votes in future elections. This money has to be paid back with interest to banks from which it was borrowed in the form of government bonds or the banks go bust. Then all the domino,s start falling. These Greek, Irish, Portugese,Spanish, Italian and lets face it the British governments know what the solution is. But they do not know how to get re elected after they implement it.
The only answer is severe austerity. Raise taxes, cut wages, cut benefits to a subsistance level. Stop profligate spending, etc. etc. till all our debts are honoured and then with lesson learned start again. But we know none of our democratic parties have the balls to do what is neccessary.
(Just thinking out loud here, I am a democrat) Therefore we need some hard but fair benevolant dictator to take reins and see us through this (Im with Joe here)very scary time.
Sponsored Links
Similar threads
- imamartian
- General Discussion
