£120,000,000 a day in interest alone!!!

HappyMJ

ILW wrote: »

I am still missing the point, are you saying that because it has been worse in the past then it is all OK and nothing to worry about?

Yes you really need an economics degree to understand that it really is nothing to worry about. Debt will always grow but the value of that debt against the extra income that that debt generates devalues the debt. We generally buy houses with debt those houses increase in value but the debt stays the same or may increase when we wish to improve the property then we sell them at a profit. That profit pays for the interest that was paid over the life of the mortgage and we have the added bonus of a roof over our heads for 25 years. If we had to save for 25 years we'd still have to live somewhere during that time.

As for educating our kids the government borrows money to build schools employs teachers to teach those kids then when those kids are older and well educated they will earn much more money than if they were uneducated then they pay taxes and pay off the national debt incurred to educate them. It all then rolls over so we then borrow more to build new schools to educate their kids and so on.

We pay more debt down in the good times to slightly dampen growth then we borrow more in the lean times to attempt to increase growth.

ILW

Just one more daft question.

Would it have been better to have spent a little less over the last decade or so and not have to be paying any interest at all?

HappyMJ

ILW wrote: »

Just one more daft question.

Would it have been better to have spent a little less over the last decade or so and not have to be paying any interest at all?

Ahh yes but what do you cut? Sorry we aren't building multi billion pound hospital this decade as we want to pay off debt.

Degenerate

ILW wrote: »

I am still missing the point, are you saying that because it has been worse in the past then it is all OK and nothing to worry about?

My god, you really are just dense.

Kohoutek

ILW wrote: »

Just one more daft question.

Would it have been better to have spent a little less over the last decade or so and not have to be paying any interest at all?

Depends what the money was spent on....

ILW

HappyMJ wrote: »

Ahh yes but what do you cut? Sorry we aren't building multi billion pound hospital this decade as we want to pay off debt.

Or alternatively " we are not building the multi billion pound hospital now because we are having to pay all this interest"

I would estimate that that if we were not paying this interest, we could afford to build a new hospital or two every month.

ILW

Degenerate wrote: »

My god, you really are just dense.

You have not answered a single question with a straight answer.

ILW

Just noticed all the fuss about Manchester City Council closing a load of it's services because they need to save £25 million a year. And I am being told that £120 million per day going in interest is somehow insignificant. I will probably just get insulted for pointing out the comparison.

Degenerate

ILW wrote: »

You have not answered a single question with a straight answer.

I haven't expressed an opinion anywhere in this thread on whether the current interest payments are acceptable or not, so I do not feel the need to answer your quizzing on that basis.

ILW

Degenerate wrote: »

I haven't expressed an opinion anywhere in this thread on whether the current interest payments are acceptable or not, so I do not feel the need to answer your quizzing on that basis.

So what is the point in posting if you are not going to let us know if you have an opinion?