UK BailOut - IMF Ride Into Town - What Would It Take?

DecentLivingWage

Does Osborne need to ask for a loan? Does he have enough in the coffers to cover his wage bill, social security and borrowing commitments and interest? Thought it would be interesting to monitor the situation forward of this week when the IMF's decisions team comes riding in to the UK to have a few words with Osborne about his homework as we've seen this pattern before with Ireland, Spain and others. Notwithstanding the carpeting he's going to get, it's going to be very difficult week for him amongst his own marginal MPs scared of losing their seats.
Outlandish? I thought so too til I heard the words 'not OBVIOUSLY in need of a bailout' and wondered 'so.... secretly then?'

michaels

Not until after the next election which of course will be a good excuse why the newly elected govt turn out to be entirely unable to keep the union sponsored voter buying promises of their manifesto.

Generali

The British Government can borrow money at 1.66% for 10 years. Why would they want to borrow from the IMF?

Numptynomics at it's finest.

DecentLivingWage

Yes,thanks, that's what I thought - so why the massive muscling in then? Telling Osborne off in public, giving him a carpeting and bossing him? Curious

Generali

DecentLivingWage wrote: »

Yes,thanks, that's what I thought - so why the massive muscling in then? Telling Osborne off in public, giving him a carpeting and bossing him? Curious

It's what the IMF does. They produce a stream of research on most countries. If you go to their website you can see it for yourself.

You borrow from the IMF if you can't borrow in the market. A yield on 10 year Gilts of 1.66% isnt a sign of stress in the markets!

Seriously, if you're going to post this stuff and not look like a complete fool you should do the tiniest bit of research first.

mystic_trev

Generali wrote: »

The British Government can borrow money at 1.66% for 10 years. Why would they want to borrow from the IMF?

Numptynomics at it's finest.

Perhaps DLW would like the Country to go back to the dark ages of 1976, the only time we've had to borrow from the IMF. I wonder who was in Government then?;)


http://www.nationalarchives.gov.uk/cabinetpapers/themes/imf-crisis.htm

grizzly1911

DecentLivingWage wrote: »

Yes,thanks, that's what I thought - so why the massive muscling in then? Telling Osborne off in public, giving him a carpeting and bossing him? Curious

To justify their existence.

Come and have a bit of bash in one of the buzzing capitals of the world.

Thrugelmir

Originally Posted by DecentLivingWage
Yes,thanks, that's what I thought - so why the massive muscling in then? Telling Osborne off in public, giving him a carpeting and bossing him? Curious

Funny that the southern European states are being told they need to impose more austerity by the IMF. Yet the UK which hasn't cut as hard is being told it's too hard. Doesn't add up.

If you listen to the last IMF conference. Then you'll find that there's no agreement there either as to the way forward.

Generali

Thrugelmir wrote: »

Funny that the southern European states are being told they need to impose more austerity by the IMF. Yet the UK which hasn't cut as hard is being told it's too hard. Doesn't add up.

If you listen to the last IMF conference. Then you'll find that there's no agreement there either as to the way forward.

"IMF Slams Osbourne" is going to sell a lot more papers than, "IMF Unsure As To Best Way Forward: Austerity isn't fun but then look what happened to Greece. R&R got their maths wrong but we can't simply keep borrowing." The second isn't quite as snappy.

DecentLivingWage

They seem pretty certain of the need for the Cons to change course - now even David Lipton deputy managing director,is saying 'too fat,too fast' and that Osborne should desist

Generali

David Lipton was an advisor to Obama and there is an argument that this is another part of Obama's battle with the House Republicans.

The fact remains that regardless of what the IMF say, the markets are perfectly clear: they are happy to lend to the British Government at below the target rate of inflation for a period of 10 years. That is an unqualified vote for the ability of the British Government to repay. Everything else is just speculation. There simply isn't a problem here at present.