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chucky

grizzly1911 wrote: »

There are of course many riding the boat whose children will also be priced out in due course.

That's a very, very negative and disoriented view of the world.

It's pretty obvious that if you own property you and your children have more chance of benefiting from house price rises than if you don't or am I wrong?

Loughton_Monkey

grizzly1911 wrote: »

I know we have foreign assets any idea whether we pay out more interest than we receive (excluding BOE/UK government contras) - as a whole?

I have no idea personally. But surely our interest rates are very low to reflect our (still) high credit rating. Yields from other countries would be much higher, with a commensurate element of risk.

But it might make sense, up to a point, if we can borrow at 2%/3%, then why not borrow more and invest it in foreign bonds at 5%/6%.

Of course Osborne would have more than a bit of egg on his face should he find himself holding £200 billion of Venezualan or Lithuanian debt that turns out to be junk bonds.

blinko

Loughton_Monkey wrote: »

I have no idea personally. But surely our interest rates are very low to reflect our (still) high credit rating. Yields from other countries would be much higher, with a commensurate element of risk.

But it might make sense, up to a point, if we can borrow at 2%/3%, then why not borrow more and invest it in foreign bonds at 5%/6%.

Of course Osborne would have more than a bit of egg on his face should he find himself holding £200 billion of Venezualan or Lithuanian debt that turns out to be junk bonds.

if only it was that easy hey, although they do have a very large cash generating asset in the banks, what is the reckoning that they will fail to make a reasonable profit from these sales. we sold 6% the other day because apparently we broke even. Yet in 5 years time lloyds will be generating more cash than it is today....oh the pain of the british tax payer

ILW

CLAPTON wrote: »

Is this some sort of racist view of the world?

Do you feel it is equally wrong for foreign peoples to pay interest/dividends to the UK?

Don't be daft.
Our government sending cash overseas and seeing no current benefit from it is not the ideal situation.
We would have been better off not borrowing it in the first place and just living within our means.

CLAPTON

grizzly1911 wrote: »

I know we have foreign assets any idea whether we pay out more interest than we receive (excluding BOE/UK government contras) - as a whole?

difficult to find details although I'm sure they are available somewhere but this (easy to read) link may be of interest although it dates from 2008 so won't show all the adjustment from the financial meltdown


http://www.hsbcukeconomyexplained.co.uk/Pages/Contents/17_UK_External_Position/17-7_Importance_of_Global_Investment.aspx

CLAPTON

ILW wrote: »

Don't be daft.
Our government sending cash overseas and seeing no current benefit from it is not the ideal situation.
We would have been better off not borrowing it in the first place and just living within our means.

Whether or not it is better never to borrow rather depends upon what the money was used for.

If everyone and every company lived within their means then investment would probably be close to zero and certainly very few new startup companies would form and of course none of us could buy homes (except the very rich).

grizzly1911

Loughton_Monkey wrote: »

I have no idea personally. But surely our interest rates are very low to reflect our (still) high credit rating. Yields from other countries would be much higher, with a commensurate element of risk.

But it might make sense, up to a point, if we can borrow at 2%/3%, then why not borrow more and invest it in foreign bonds at 5%/6%.

Of course Osborne would have more than a bit of egg on his face should he find himself holding £200 billion of Venezualan or Lithuanian debt that turns out to be junk bonds.

If we have the balance right then is the c.£50bn debt servicing figure, in the deficit figures, really just one side of the equation, unless it is a net figure?

Where does the interest income appear?

grizzly1911

chucky wrote: »

That's a very, very negative and disoriented view of the world.

It's pretty obvious that if you own property you and your children have more chance of benefiting from house price rises than if you don't or am I wrong?

At some point they may benefit but there is no reason that will be when they themselves are buying property.

They may well not benefit as the current costs of care and health treatment grow.

Loughton_Monkey

grizzly1911 wrote: »

If we have the balance right then is the c.£50bn debt servicing figure, in the deficit figures, really just one side of the equation, unless it is a net figure?

Where does the interest income appear?

You'd probably find it somewhere in the Pink Book

http://www.ons.gov.uk/ons/rel/bop/united-kingdom-balance-of-payments/2012/index.html

But don't expect it to be easy reading. It's a horror story anyway, documenting our sad demise as a trading nation. Probably a bit like reading the last 30 years of Woolworth's accounts where they used to supply the whole nation with clothes, hardware, and tools, they ended up selling a few DVD's a sweets to schoolkids.

CLAPTON

Loughton_Monkey wrote: »

You'd probably find it somewhere in the Pink Book

http://www.ons.gov.uk/ons/rel/bop/united-kingdom-balance-of-payments/2012/index.html

But don't expect it to be easy reading. It's a horror story anyway, documenting our sad demise as a trading nation. Probably a bit like reading the last 30 years of Woolworth's accounts where they used to supply the whole nation with clothes, hardware, and tools, they ended up selling a few DVD's a sweets to schoolkids.

we haven't declined as a trading nation although there has been a relative decline comparing us to others

we are richer than we have ever been

the fact that others are increasing their standard of living should be the cause of celebration

next you'll be telling us that the people in the UK living below the poverty line are actually poor.