UK sinking under an ocean of debts?

[Formatted]

Government debt is complicated and can't be compared to the borrowings of your average business

 

[BrianV]

Very sobar reading in yesterdays mail newspaper, i quote, national debt £2.3 trillion, interest on debt this year £64bn, thats nearly double the cost we spend on the uk armed forces, defence? So what happens say in 10-20 years will most of the tax income the govt gets just go on paying the interest on the ever growing debt the UK has? Now then any business man, women, that runs a business either large or small, makes a priority of getting rid of or reducing the debt or interest payments paid on it? Well we did in our company any way? my father swore after starting out in business with large morgages, bank loans, like many have to, to get it paid back as soon as possible, we got into a position in the end that we could negoticiate cash on delivery discounts with many of our suppliers, if we paid on delivery? My whole point of this thread is this, the govt isnt been honest with the public about the finantial situation the country is in, and been in really since the end of the war, but the debt burden now is coming to a head? It really makes me angry when politicans demand more money for this that and the other? from where, and when others say we are a rich country? A rich country has no debt, it has cash surpluses it lends money and gets interest, guess how pays?

I think what's even more worrying is that the majority of businesses have made huge losses over the last two years, these losses are able to be brought forward to offset against future profits meaning a colossal drop in tax revenue over the next few years, where is this shortfall going to be made up from at a time of increased debt interest?

 

[Turnip]

Does anyone know where the money is being borrowed from.I’m sure there are not multi multi multi billionaires lending money to banks and goverments
nick…

How much money is the UK government borrowing, and does it matter?

How does government borrowing work, and how and when is the money paid back?

www.bbc.com

Basically private sources and other governments. If you can buy a bond and it has a higher return than say a savings account then buy a bond. It essentially is a guaranteed return, so "non" of the risk of investing. The risk is though quantitive easing in that the government can print more money to repay. So if you are a foreign investor and buy a £ bond and your currency is say equal to the £ and at the point of repayment the £ is 3/4 of your currency then you are f'ed.

Doesn’t matter does it. It’s never been paid back ever and it never will. National debt is just a scare mongering figure that means nothing because the people who created it, operate it, own it and dish it out will never call it in because they are one in the same people at any one time in history. It’s so irrelevant it shouldn’t even be publicised.

Lot of the time new bonds are issued to repay old bonds. Borrowing from another person to repay the amount you borrowed from someone else. Which makes sense if you can issue the new bond at a lower interest payment than the original.

Interesting movie about the 2008 crash,

The Big Short (2015) ⭐ 7.8 | Biography, Comedy, Drama

2h 10m | 15

www.imdb.com

 

[d williams]

The real problem is that no one can comprehend the numbers. There was a chap on Radio 4 last week that put £2.3 trillion into perspective. He said that if you spent a £1m per day every day and started when the pyramids were built then today you would only be 3/4 of the way through £2.3 trillion

It’s just mind blowing debt, the whole world is running on a confidence trick. Not much to look forward to when it all goes Pete Tong

When the last crash 2007??? There was a clock in New York showing the debt going around not sure if it’s still going but by f**k it was fair spinning

 

[britishblue]

It is still spinning but the real worry is the debt in 2007 was a fraction of what it is now! USA knocking on the door of 30 trillion debt.

 

[thesilentone]

USA about 135% of GDP. Increasing by about 100k every 5 seconds.

https://www.usdebtclock.org/

 

[Muck Spreader]

Have you not heard of MMT. Debt doesn't matter because if you own the money printer you can just keep printing and QE the money to buy the countries debt! I believe if interest rates went back to long term averages the good ol USA would be bankrupt. It is frightening when you owe 30 trillion and your taxation income is a fraction of what you really need. Who knows? Stock markets at all time high. Asset bubble if it is one at all time highs. It is not how I was brought up to be with money but it feels like most of the rest of the country is on the spend spend spend like there is no tomorrow which there might just not be!

It will carry on working OK, unless the global elites lose faith in the governments ability to be fiscally responsible and inflation then kicks off. And we all know what happened in the Weimar republic

 

[hoff135]

US fed rhetoric is becoming more hawkish by the day. 3 rate rises forecast this year, end of bond buying by March and now talking about reducing their balance sheet, in otherwords quantative tightening. Wall Street didn't like this news one bit yesterday. Unfortunately the whole country seems to be run to keep wall street happy and to hell with the real economy so will see if they follow through.

I believe they massively over reacted to covid. Printed far too much money and we now have inflated asset prices across the board and across the world. Big pain coming I think

 

[bluebell]

this question of uk debt , and the interest we paid on it, i heard first on essex radio, about 20 odd years ago, when the DJ asked a question to the audience, phone in, the debate was should we make it law as a country that we give 2 per cent of GDP in foreign aid a year? someone phoned in and said not only that we should not give any money, but we are at that time are paying approx £123 million pounds a day in interest payments on the UKs debt at that time? That then got me thinking, so easy to find these things out on the internet? Answer all european countries have massive national debt, except one? that one being Norway, norway at the time 20 odd years ago, i doubt that its changed to now, was the only european country to have a massive trade, money surplus?

 

[bluebell]

Your right about the massive level of usa debt? voices of concern are starting in USA govt, about the US level of debt and whever to raise the debt ceiling? On the internet it was put very stark and to the point by a senator that total tax revenues were say 3 billion dollars but currant projected spending was 5 billion dollars? Spending far more than they get in, hence the growth of the debt and interest then liable on it?

 

[thesilentone]

this question of uk debt , and the interest we paid on it, i heard first on essex radio, about 20 odd years ago, when the DJ asked a question to the audience, phone in, the debate was should we make it law as a country that we give 2 per cent of GDP in foreign aid a year? someone phoned in and said not only that we should not give any money, but we are at that time are paying approx £123 million pounds a day in interest payments on the UKs debt at that time? That then got me thinking, so easy to find these things out on the internet? Answer all european countries have massive national debt, except one? that one being Norway, norway at the time 20 odd years ago, i doubt that its changed to now, was the only european country to have a massive trade, money surplus?

The Germans are in pretty good shape also.

 

[Muck Spreader]

Answer all european countries have massive national debt, except one? that one being Norway, norway at the time 20 odd years ago, i doubt that its changed to now, was the only european country to have a massive trade, money surplus?

And doesn't every Scotsman scream that should have been us!

 

[Surface Tension]

Answer all european countries have massive national debt, except one? that one being Norway, norway at the time 20 odd years ago, i doubt that its changed to now, was the only european country to have a massive trade, money surplus?

You can have a look at the figures here, not the case with Norway anymore.....

Click 'last' to sort by highest and lowest,

https://tradingeconomics.com/country-list/government-debt-to-gdp

 

[SRRC]

The Germans are in pretty good shape also.

Are you sure?
2020 German national debt was $2,643,428,000, about 70%GDP equivilent to $32,000 per head.

 

[colhonk]

Blair started our debt off. Arsehole should have been locked up in the Tower along with Brown.

 

[onthehoof]

The only thing to fear is fear, will be along sooner or later, always has and always will.

 

[onthehoof]

You can have a look at the figures here, not the case with Norway anymore.....

Click 'last' to sort by highest and lowest,

https://tradingeconomics.com/country-list/government-debt-to-gdp

Remember all the furore about Greece, doesn't even get mentioned these days, must have managed to pay off all that debt

 

[glasshouse]

thats the big big difference between the oil rich arab states and us, they have massive cash surpluses that can be wasted on buying a premier football team or owning 500 race horses, while their neighbouring arab states , in poverty, drought, civil war, and is appealing to us western countries for money , help? the biggest discrace in the world are countries that have massive cash, trade surpluses due to oil, gas, etc, but the mass of the population live in poverty, dont benifit from their countries wealth, its wealth being in the hands of the few?

thats the big big difference between the oil rich arab states and us, they have massive cash surpluses that can be wasted on buying a premier football team or owning 500 race horses, while their neighbouring arab states , in poverty, drought, civil war, and is appealing to us western countries for money , help? the biggest discrace in the world are countries that have massive cash, trade surpluses due to oil, gas, etc, but the mass of the population live in poverty, dont benifit from their countries wealth, its wealth being in the hands of the few?

Aye
And dont forget the country where the oil wealth goes south never to be seen again

 

[BrianV]

When the last crash 2007??? There was a clock in New York showing the debt going around not sure if it’s still going but by f**k it was fair spinning

The Germans are in pretty good shape also.

No surprise there then!

 

[BrianV]

You can have a look at the figures here, not the case with Norway anymore.....

Click 'last' to sort by highest and lowest,

https://tradingeconomics.com/country-list/government-debt-to-gdp

government-debt-to-gdp

This might be more illuminating going forward!