NS&I and UK Gov Bankruptcy

Glen_Clark

Malthusian wrote: »

no-one wants President Blair.

Well I certainly don't. The people don't always make the best choice, but its their choice, and 5 years later they get another choice. So we are not stuck with Bliar, plus his extended family and hangers on, plus all Bliar's descendants , plus all their extended families and hangers on, whatever they turn out to be like, for evermore

Malthusian

The people don't always make the best choice, but its their choice, and 5 years later they get another choice.

And five years later, when they are sick of their choice, they have to vote for the choice they rejected five years ago.

If democracy was actually a choice, we would not still be choosing between the red team and the blue team despite both parties having been rejected about 20 times each.

armchaireconomist

The "they could just print their way out of debt" argument really worries me. If that's the case, why don't they do it now? Why do they borrow anything?


See: hyper inflation

Malthusian

armchaireconomist wrote: »

The "they could just print their way out of debt" argument really worries me. If that's the case, why don't they do it now? Why do they borrow anything?

Because their own salaries and pensions are paid in Sterling. And because it's the equivalent of killing the goose that lays the golden eggs. As long as pension funds and other governments are happy to continue lending us money at cheap rates, and as long as you can squeeze enough out of the serfs to pay the interest, it's better to carry on than to turn on the printing presses and lose that option for decades.

armchaireconomist

That was a rhetorical question, Malthusian. I was remarking the worrying lack of economic sense in this thread.

FatherAbraham

Linton wrote: »

Issuing index linked bonds shouldnt be a major problem as the government's income is also index linked, taxes generally being charged on a % basis.

Inflationproofness of taxation revenue certainly helps the state meet the coupon payments, but it can't help repay the principal.

Warmest regards,
FA