government defaults?

Masomnia

Arcaine wrote: »

Argentina in 2002 is the last big one I think.

http://en.wikipedia.org/wiki/Argentina_default

Sorry yes, I meant the UK has never defaulted.

Thrugelmir

Arcaine wrote: »

Argentina in 2002 is the last big one I think.

http://en.wikipedia.org/wiki/Argentina_default

.
Iceland possibly?

purch

Isn't the pound experiencing a large devaluation?

No.

Especially not against the countries who own most of our debt.

toby3000

I was under the impression that the UK never repaid it's WW1 debts to America, and therefore was the biggest debt defaulter in history? I may be wrong about this though

Masomnia

toby3000 wrote: »

I was under the impression that the UK never repaid it's WW1 debts to America, and therefore was the biggest debt defaulter in history? I may be wrong about this though

Never heard of that The government still has outstanding bonds from the First World War though, I know this much.

macaque_2

hgllgh wrote: »

Just curious about this one, but is it possible that governments can default?

Events in Dubai seem to be raising this question ...

http://news.bbc.co.uk/1/hi/business/8385164.stm

"The BBC's economics editor Stephanie Flanders said the situation in Dubai had alerted investors to the idea that you can lose money on government bonds - even if they appear to have implicit guarantees. The repercussions of Dubai's debt crisis is already making it more expensive for countries with large deficits to sell their debt.
"There are lots of other governments out there who don't have rich neighbours with oil to bail them out, who may have trouble in the next few months or years"

Is it at all possible that the UK government could default?

When governments default on debts (I think the Chinese did this once) I believe the practice is to hang the default around their neck like a dead albatross. Financial sanctions are imposed which can last almost indefinitely.

I don't think the UK government would dare go down this route. Jumbo interest rates would be their preferred option.

Rochdale_Pioneers

nearlynew wrote: »

I don't know whether to laugh or cry at this moronic statement.

Do what you like - my statement remains factually correct regardless.

Generali

Masomnia wrote: »

Sorry yes, I meant the UK has never defaulted.

Not true.

The debasement of the currency under Henry VIII was a form of default.

http://history.wisc.edu/sommerville/123/123%20232%20Henry%20&%20edward.htm

mr_fishbulb

Thrugelmir wrote: »

Dubai has no economy so to speak of. So has attempted to build one, on borrowed money.

What were they thinking? Trying to base a whole economy on the price of land just going up. The must have been out of their min... Oh wait.... oh dear

Generali

If you want to talk about defaults, the first thing to think about is what actually is a default?

Well I reckon it's when you go to your creditors and refuse to pay what you are required to under the contract you have. If you go to them and ask for more time and they agree then there's no default.

So will the UK Government default? It's incredibly unlikely as pretty much all of her debt is denominated in sterling and as has been previously said (and incorrectly ridiculed) if it comes down to it, the UK Government can print money to pay back debt in sterling. That is why countries like Argentina with a history of defaults have to borrow in foreign currency: they can't just inflate the debt out of existance that way.

The only country I can think of that has defaulted on local currency debt is Russia apart from in times of war or revolution.