How long to pay it all back? 2070?

vivatifosi

ad9898 wrote: »

Mmmmm, we can all see where this will end up

I think you've just found your next avatar ad

CLAPTON

vivatifosi wrote: »

Not out to ignore QE, spiv, just trying to understand things on my terms. If I take out a loan, any type - whether one that's small to me or a big one like a mortgage, I know what the likely terms are. Nobody is being told when we have to pay it back by and I don't think it is an unreasonable question as it is us, the tax payers, who have to pay it back.

Edited to add: the 61 years to pay off WW2 debt was a bit of a shock tbh, just wanted to put it out there and see what others thought.

During that shocking 61 years to repay the war debt, the ordinary people of this country have enjoyed unprecedented improvements in wealth, health and opportunity.
Even in these dark days people are still massively better of that even 10 years ago let alone 61..
Let's have a sense of proportion here.

vivatifosi

CLAPTON wrote: »

During that shocking 61 years to repay the war debt, the ordinary people of this country have enjoyed unprecedented improvements in wealth, health and opportunity.
Even in these dark days people are still massively better of that even 10 years ago let alone 61..
Let's have a sense of proportion here.

I pressed the thanks button instead of quote in error.

I'm not suggesting for one minute that that there haven't been unprecedented improvements in wealth, health and opportunity. I'm simply asking the question - will it take the rest of my life and some to repay this debt? I fail to see how this is an unreasonable question.

beer_tins

Wookster wrote: »

There isn't a plan.

To begin to repay the debt the government would have to run a surplus. That is just inconceivable.

It's inconcievable at the moment. We may very well run a surplus in the future, but the big question is "when?". It could be in 3 or 4 years, but it could be much longer

beer_tins

vivatifosi wrote: »

I pressed the thanks button instead of quote in error.

I'm not suggesting for one minute that that there haven't been unprecedented improvements in wealth, health and opportunity. I'm simply asking the question - will it take the rest of my life and some to repay this debt? I fail to see how this is an unreasonable question.

The government is always in debt. It has borrowed every year for decades (centuries?!). As some debt is repaid other debt is re-financed through new bonds, so even in 50 years you might say some of it is still re-financed debt from now.

I suppose you could say that once the government returns to the level of debt (as % of GDP) as it was before this borrowing, that it has repaid this debt, but it's not really as black and white as that. So to answer your question, yes it could be repaid in your lifetime, depending on how long that is and on your interpretation of the figures.

If the current borrowing levels lead to the UK's credit rating worsening and debt interest rising when this debt is re-financed in future, do you add that to the cost of "this" borrowing, for example? It is very difficult to quantify, because this debt is lumped in with all of the existing government debt, which will be re-financed together in the future when bonds mature, etc.

That's not a black and white answer, but it's the best I can do!

ad9898_3

CLAPTON wrote: »

Even in these dark days people are still massively better of that even 10 years ago

Mmmm, I'd like to see the figures on that, my feeling is apart from the people who chose benefits as a career path, the majority of the population's 'net wealth' is probably less, and with falling house prices, is getting less everyday.

Cannon_Fodder

CLAPTON wrote: »

Let's have a sense of proportion here.

........................You are here.

StevieJ

ad9898 wrote: »

I'm not suggesting the IMF's forecasts are any better than Darling's, I'm just saying that we will be knocking on their door within 3 years.

You mean Cameron will :rotfl:

*MF*

Two extracts from "The In The Red Book"

When do we pay it all back? Those extracts alone show the bigger question may be "When will we stop borrowing?"

The figures involved are enormous, and are themselves based on assumptions of growth that seem to most wholly unrealistic.

It ain't pretty - and it ain't gonna change soon.

cocktail

CLAPTON wrote: »

During that shocking 61 years to repay the war debt, the ordinary people of this country have enjoyed unprecedented improvements in wealth, health and opportunity.
Even in these dark days people are still massively better of that even 10 years ago let alone 61..
Let's have a sense of proportion here.

yes and it was by going into an even vast debt. like paying your credit card with another, or a balance transfer.
but as long as its not going to be paid , it doesn't matter. enjoy it when it lasts