At what point will U.K. become Bankrupt???

ifindoubtflatout · Jan 18, 2021

If this Covid goes on for years with cycles of lockdown, vaccination, new variant, lockdown etc and the Govt keeps shelling money out

at what point would U.K. become Bankrupt
And if that point was reached what happens then ???

oil barron · Jan 18, 2021

Most of the UKs borrowing is from itself. So the doomsday scenario is the banking community loses confidence in economy and sterling goes into an exponential decline against other currencies. Rishi is banking on history that, the UK won’t be seen as a banana republic and allow that to happen.

Muck Spreader · Jan 18, 2021

oil barron said:
Most of the UKs borrowing is from itself. So the doomsday scenario is the banking community loses confidence in economy and sterling goes into an exponential decline against other currencies. Rishi is banking on history that, the UK won’t be seen as a banana republic and allow that to happen.

The other problem is that the more money Rishi prints the less value the pound in you pocket or bank a/c has, potentially leading to inflation.

Hindsight · Jan 18, 2021

Muck Spreader said:
The other problem is that the more money Rishi prints the less value the pound in you pocket or bank a/c has, potentially leading to inflation.

Isn't that relative - how many Euros has the ECB been rattling off those presses? Crumbs and US Dollars are so two to the penny I gather they are used as wallpaper these days

Now Bitcoin - your speaking.

oil barron · Jan 18, 2021

Muck Spreader said:
The other problem is that the more money Rishi prints the less value the pound in you pocket or bank a/c has, potentially leading to inflation.

not necessarily under modern money policy. Inflation is generated by supply and demand. Normally the supply of money into the system comes from bank loans (banks can loan 10 times more money than they have on account). If the economy has low confidence that dries up, and the stimulus replaces it. So unless the government really fuqs up and keeps printing after the velocity of the economy has returned there might not be a huge amount of inflation above what you would expect in a good economy.

The Seeker · Jan 18, 2021

I’ve noticed the news forums have changed from / protect the nhs, save us all , money no object , all lives at all costs to .... ok so what’s the economic forecast .. ie how much. I deed to think how much the bill will be tbh. Nice to know we’re on the way out of the covid mess... possibly into a large financial mess

uztrac · Jan 18, 2021

Our WW2 debt was finally paid off during Mrs.Thatchers tenure of office,so the current debt could be settled by say 2060 all being well!!

Muck Spreader · Jan 18, 2021

oil barron said:
not necessarily under modern money policy. Inflation is generated by supply and demand. Normally the supply of money into the system comes from bank loans (banks can loan 10 times more money than they have on account). If the economy has low confidence that dries up, and the stimulus replaces it. So unless the government really fuqs up and keeps printing after the velocity of the economy has returned there might not be a huge amount of inflation above what you would expect in a good economy.

Or the government may deliberately set about fuelling inflation in order to reduce the the fiscal debt, without needing to do something unpopular like increasing taxes.

Hindsight · Jan 18, 2021

ifindoubtflatout said:
If this Covid goes on for years with cycles of lockdown, vaccination, new variant, lockdown etc and the Govt keeps shelling money out

at what point would U.K. become Bankrupt
And if that point was reached what happens then ???

Start worrying fella when Rishi Sunaks boys turn up at your gaff with a warrant for the Telly!!!

BBC One - The Sheriffs Are Coming

A look at the work of sheriffs, as they help members of the public who are owed money.

www.bbc.co.uk

oil barron · Jan 18, 2021

Muck Spreader said:
Or the government may deliberately set about fuelling inflation in order to reduce the the fiscal debt, without needing to do something unpopular like increasing taxes.

Inflation is the most regressive tax there is.

Kildare · Jan 18, 2021

Muck Spreader said:
Or the government may deliberately set about fuelling inflation in order to reduce the the fiscal debt, without needing to do something unpopular like increasing taxes.

There is more than the UK up to their eyes in debt. I think Ireland owes about 220 b with 5m pop.Americas debt is high too.
The only way out is inflation as you suggest. Some people realise this and are buying assets that might hold some money together.
Land gold and housing.
Commercial properties not as safe any more. Very changeable with home working popular and online shopping.

Danllan · Jan 18, 2021

ifindoubtflatout said:
If this Covid goes on for years with cycles of lockdown, vaccination, new variant, lockdown etc and the Govt keeps shelling money out

at what point would U.K. become Bankrupt
And if that point was reached what happens then ???

We won't be bankrupt as a country, there is a huge amount of money available to a government in dire straits - but it would have to be dire straits for it to be tapped.

Turning your question around a bit, as far as vaccination goes, the UK is the leading advanced economy in the world... so there is a a great opportunity for the economy to take advantage of the fact.

Muck Spreader said:
The other problem is that the more money Rishi prints the less value the pound in you pocket or bank a/c has, potentially leading to inflation.

You're a couple of decades behind the times, the BOE has determined monetary policy since 1997.

JCMaloney · Jan 18, 2021

It`s all just digital numbers on a mega-spreadsheet really.
The days of money linked to tangible assets of value are long gone.

We are creating a purely digital economy without even trying..... ask yourself when you last spent cash?
The uplift in crypto-currencies reflects the same.

jendan · Jan 18, 2021

Hindsight said:
Isn't that relative - how many Euros has the ECB been rattling off those presses? Crumbs and US Dollars are so two to the penny I gather they are used as wallpaper these days Now Bitcoin - your speaking.

I thought there was a really good article in Saturdays Times written by Philip Aldrick about how much money Blackrock,JP Morgan Chase and other Investment Banks have made last year.A windfall profits tax on these lot would pay off a good deal of the Covid debt in one go!

ifindoubtflatout · Jan 18, 2021

Well I am a bit old fashioned and do still spend cash, I still sometimes write cheques and I won’t have online banking on my phone
Although online banking on the computer is very useful admittedly
And Lockdown has increased my debit/credit card wireless “Beep Beep “ spend
Lol

ollie989898 · Jan 19, 2021

Given the amount of traffic about yesterday, I must ask, what is this lockdown you speak of?

Martin Holden · Jan 19, 2021

ollie989898 said:
Given the amount of traffic about yesterday, I must ask, what is this lockdown you speak of?

Correct. I crossed over the M5 in N Glos yesterday and way more traffic than last April

czechmate · Jan 19, 2021

Danllan said:
We won't be bankrupt as a country, there is a huge amount of money available to a government in dire straits - but it would have to be dire straits for it to be tapped.

Turning your question around a bit, as far as vaccination goes, the UK is the leading advanced economy in the world... so there is a a great opportunity for the economy to take advantage of the fact.

You're a couple of decades behind the times, the BOE has determined monetary policy since 1997.

I picked up on the news last night that Israel is top with I think United Arab Emirates second. Uk certainly very impressive (and btw my mum has now received hers

)

Danllan · Jan 19, 2021

czechmate said:
I picked up on the news last night that Israel is top with I think United Arab Emirates second. Uk certainly very impressive (and btw my mum has now received hers)

Very glad to read that about your mother; mine is expecting hers in the next couple of weeks...

No disrespect to either Israel or the UAE but... neither are leading world economies. Both also have the advantage - in this instance - of being pretty small in area and with very large and centralised urban populations; the reverse is the case for e.g. France and the US, making their efforts more difficult. But one does wonder why places like the Netherlands and Belgium haven't done better.

7610 super q · Jan 19, 2021

Print more seems to be the modern way. I've often wondered how we pay our way as a nation seeing as we don't manufacture anything useful any more. I'm even more baffled now we're throwing money at folks furloughing in non jobs.

At what point will U.K. become Bankrupt???

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