How Will the National Debt be Paid Off?

Generali

Anyone got any ideas? I dont.

It's a serious question BTW. Obviously if you crank up the taxes on the rich they'll just leave the country or spend more on tax avoidance and the middle classes seem to be hurting due to the excellent policy of making houses as expensive as possible.

So how's the best part of £1,000,000,000,000 going to be paid back?

Ephemera

Quantitative easing. Just print more money. In the words of Aleczander the meerkat...

Simples!

Masomnia

I think we've just got to cross our fingers and hope that the spending does in fact result in a higher tax take later down the line. I don't see how the tax burden can be increased any more, and spending cuts aren't ideal.

Selling off the banks might reduce it, you never know. All I know is it isn't going to be easy for anyone.

Ephemera

Seriously, though, the poor taxpayer will bear the brunt of this for many years to come. Quantitative easing - inflation - devaluation of the Pound will reduce the effective debt. However we're not the only economy doing it. The US is also printing dollars as fast as it can.

We're in for an interesting few years. Anyone remember the 70's??

Dave101t

they could just do a quantitative easing on it and reduce the debt to 0.
while they are at it they could put 10,000 quid in every uk bank account!

(i think that would of worked out cheaper than the bank bail out)

robpw2

maybe they could follow the match betting thread

chewmylegoff

we won't be paying off the national debt - it will just continue to get bigger, as it always has done.

CLAPTON

The debt is about 80% of GDP

so we could use 1% of GDP for 80 years
or use 2% of GDP for 40 years
4% of GDP for 20%

etc

bearing in mind that inflation helps a bit
and historically real GDP thas grown about 2% per annum
and maybe, just maybe, we may actually get a return from all that investment in the banks. (i.e. they may just start making a profit in the future )

Pobby

Ocean Finance? the Provi.........?

Ephemera

CLAPTON wrote: »

and maybe, just maybe, we may actually get a return from all that investment in the banks. (i.e. they may just start making a profit in the future )

I know you've said that with your tongue firmly in cheek but HAHAHAHAHAHAHAHA!!

I'll believe that when I see it... :mad: lol

97trophy

Clapton - great analysis!