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UK Government Debt - Putting it in perspective
Comments
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Assets? So does that mean if we sold everything of value- all our assets(whatever they are) we would only owe about 5 trillion quid? I'm encouraged and feeling positively optimistic. thanks for clearing that up for me0
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joe_blotts wrote: »Assets? So does that mean if we sold everything of value- all our assets(whatever they are) we would only owe about 5 trillion quid? I'm encouraged and feeling positively optimistic. thanks for clearing that up for me
This probably a more realistic position from a decent source.
http://www.ons.gov.uk/ons/rel/bop/the-international-investment-position/2010/art-uk-s-iip.html#tab-International-comparisons'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
thanks but whats an IIP?0
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and what does this mean?
The UK’s net liability position was -24 per cent of GDP0 -
gross debt is all debt we owe to other people
net debt is all debt we owe to other people - the debts they owe to us
niip is an approximation of the value of all external financial assets - all external debts - which currently is -13.1% of GDP (NB/ this is according to wikipedia so not the greatest source the world has ever seen), so theoretically if we used all of our external financial assets it to pay back all external debts we would still owe about £200 billion (not £5 trillion).0 -
joe_blotts wrote: »thanks but whats an IIP?
Net International Investment Position (i.e. overseas liabilities - assets.)'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
Thanks for the explanation. 200 billion? thats nothing the BoE could print that up tomorrow.0
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Looking deeper in to these figures, ironically our net position was worse before the start of the recession than it was in 2010.
2006 = 384 billion
2010 = 349 billion.
http://www.ons.gov.uk/ons/dcp171766_259471.pdf'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
well, given that our economy can and is comfortably servicing debts much higher than £200 billion at the moment, it shouldn't be too much trouble. (of course the assets aren't matched evenly to the liabilities, so if it happened there would be some rich people sitting on cash and the govt would still be broke).0
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chewmylegoff wrote: »well, given that our economy can and is comfortably servicing debts much higher than £200 billion at the moment, it shouldn't be too much trouble. (of course the assets aren't matched evenly to the liabilities, so if it happened there would be some rich people sitting on cash and the govt would still be broke).
Or major defaults, although we don't seem that exposed to the piigs (except Ireland).'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0
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