UK worst debt to GDP in the world.

MrEnglish

Ben Davies has been right about everything else so far. He called the huge jump in price of gold and silver before it happened.

http://kingworldnews.com/kingworldnews/Broadcast/Entries/2010/11/13_Ben_Davies.html

He says that all the talk of painful cuts and austerity is not true, debt is still going up and talk of all these cuts is just that, talk.

Masomnia

Back to the old differentiation between debt and deficit. It's clear that the debt won't be cut any time soon, if ever, I doubt anyone would dispute that.

Spending is going to increase in cash terms every year for the next five years at least.

1984ReturnsForReal_2

Me thinks Ben has a motive other than tax avoidance.

nomoreboomandbust

MrEnglish wrote: »

Ben Davies has been right about everything else so far. He called the huge jump in price of gold and silver before it happened.

http://kingworldnews.com/kingworldnews/Broadcast/Entries/2010/11/13_Ben_Davies.html

He says that all the talk of painful cuts and austerity is not true, debt is still going up and talk of all these cuts is just that, talk.

How can you say that these cuts are all talk, we have the university fees funding for a start, the rest of the cuts will become more apparent as time goes on.

Generali

nomoreboomandbust wrote: »

How can you say that these cuts are all talk, we have the university fees funding for a start, the rest of the cuts will become more apparent as time goes on.

The cuts just mean that the UK is borrowing at a lower rate, not that borrowing has ended.

Loughton_Monkey

nomoreboomandbust wrote: »

How can you say that these cuts are all talk, we have the university fees funding for a start, the rest of the cuts will become more apparent as time goes on.

In the whole scale of things, there are no "cuts" to Government spending since spending is not going to reduce overall. If there had been a plan to increase health spending by 15% the year after next, and they now decide to make it 14%, these are called "Cuts" [but don't ask me to justify that].

However, there are distinct readjustments, which mean that some elements of the budget are indeed 'cut'. Other elements aren't.

Rather simple to understand the concept.

The argument, as always, is are we spending the right amounts on the right things?

StevieJ

Masomnia wrote: »

Back to the old differentiation between debt and deficit. It's clear that the debt won't be cut any time soon, if ever, I doubt anyone would dispute that.

Spending is going to increase in cash terms every year for the next five years at least.

But not in real term which is more to the point.

StevieJ

£176k we each owe now, where are these characters based London, Virgin Islands or Fantasy Island? or is he another gold ramper?

des_cartes

StevieJ wrote: »

£176k we each owe now?

You didn't really think that bricks and mortar cash machine came without payback dd you?

antrobus

MrEnglish wrote: »

UK worst debt to GDP in the world.

Err, no it isn't. Take a look at Japan for one.

Or perhaps you meant the annual deficit as a percentage of GDP. The UK had a deficit of 11.4% in 2009/10, projected to fall to 10.1% in 2010/11. Still behind Ireland at 14.4% or Greece at 13.6%.

hshen

antrobus wrote: »

Err, no it isn't. Take a look at Japan for one.

Or perhaps you meant the annual deficit as a percentage of GDP. The UK had a deficit of 11.4% in 2009/10, projected to fall to 10.1% in 2010/11. Still behind Ireland at 14.4% or Greece at 13.6%.

I wouldn't compare UK to Japan. Japan's debts are held by domestic investors who are all too happy with close to 0% return due to deflation.

UK actually depends on international money market and need to keep that shiny AAA rating.

There will be breaking point in Japan's debt structure, just not on the same scale as the UK.