UK Total debt - Ouch

Procrastinator333

http://www.economist.com/blogs/buttonwood/2010/06/indebtedness_after_financial_crisis

EDIT: And imo, this is why a bit of inflation is viewed as a good thing for the country and why the BOE will let it run

chucky

what's the maturity of these debts?

who has more shorter term debt?

i bet it's not the UK...

the inflation argument is very plausible

Degenerate

Procrastinator333 wrote: »

http://www.economist.com/blogs/buttonwood/2010/06/indebtedness_after_financial_crisis

EDIT: And imo, this is why a bit of inflation is viewed as a good thing for the country and why the BOE will let it run

The only problem with these figures is that they are compiled by Mckinsey, who are all worthless parasitic scum that need to be killed.

Sorry, did that sound a little extreme? If you ever have to deal with these cretins, you'll understand where I'm coming from. Anything they come out with is only fit to wipe your a**e.

Procrastinator333

chucky wrote: »

what's the maturity of these debts?

who has more shorter term debt?

i bet it's not the UK...

the inflation argument is very plausible

There is a table at the bottom of that link. It isn't all gravy on the inflation train as I believe a fair chunk is index linked. But still better than nowt.

chucky

Procrastinator333 wrote: »

There is a table at the bottom of that link. It isn't all gravy on the inflation train as I believe a fair chunk is index linked. But still better than nowt.

cheers - the UK is in the best position in that sense. Japan and Italy look to have major issues.

the debt is scary but it looks manageable when looked at the time to maturity.

Procrastinator333

Degenerate wrote: »

The only problem with these figures is that they are compiled by Mckinsey, who are all worthless parasitic scum that need to be killed.

Sorry, did that sound a little extreme? If you ever have to deal with these cretins, you'll understand where I'm coming from. Anything they come out with is only fit to wipe your a**e.

Blimey, I was putting a bit of trust in th economist to be running from a reasonable source. What have they done that is so bad?

Degenerate

Procrastinator333 wrote: »

Blimey, I was putting a bit of trust in th economist to be running from a reasonable source. What have they done that is so bad?

They are a force of evil that infect everything they touch.

Seriously though, they are management consultants that epitomize everything that is wrong with business management in the modern era. If you investigate McKinseys you find many glowing references where they have helped businesses to "transform" their performance. This is because they are good at meeting KPIs.

The KPI culture is what enables knowledgeless morons to pose as good managers and wreak destruction on formerly good operations whilst claiming success (and enriching themselves.) Both the public and private sector are infested with these MBA-toting sociopaths, who recruit more and more of their own kind thus spreading the rot further. This is what's killing our industrial competitiveness versus other nations that still predominately promote knowledgeable people from within.

To see where this ultimately leads look at the hospital in Essex that met all it's targets whilst killing it's patients, or Railtrack, or the abject failure of risk management in most of the major British banks. I'm not saying McKinsey were involved in any of these specific examples, but they certainly promote the culture that produces such results.

alunharford

The vast majority (about 80% iirc) of our gilt debt is index-linked. You can't easily inflate that away (you can fiddle the backet of goods a little to fiddle the inflation figures, but not by much).

Bullfighter

chucky wrote: »

what's the maturity of these debts?

who has more shorter term debt?

i bet it's not the UK...

the inflation argument is very plausible

You're right, most of our debt is on long term paper. This is the only reason why we aren't begging the IMF to help us out as we speak.

Whilst we have fixed our '30 year mortgage' rate, we are still overspending every year by more than our 'salary'... you should worry....

Kohoutek

alunharford wrote: »

The vast majority (about 80% iirc) of our gilt debt is index-linked. You can't easily inflate that away (you can fiddle the backet of goods a little to fiddle the inflation figures, but not by much).

No it isn't, actually 80% is not index linked.

http://www.dmo.gov.uk/reportView.aspx?rptCode=D5E&rptName=65789185&reportpage=Market_Size

In 2010 gilts outstanding totalled £913.5 billion, of which £190.6 billion was index linked gilts (uplifted nominal value)

Thrugelmir

Procrastinator333 wrote: »

http://www.economist.com/blogs/buttonwood/2010/06/indebtedness_after_financial_crisis

EDIT: And imo, this is why a bit of inflation is viewed as a good thing for the country and why the BOE will let it run

Take a while when total UK debt stands at 500% of GDP.

Debt seems to be the critical issue for the UK, and how this is managed downwards will take some thought.