Discussion in 'Current Affairs, News and Analysis' started by hong_kong_fuey, Feb 8, 2008.
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No more boom and bust, eh, Gordon?
OK, his company have just been ripped off for the equivalent of Malawi's GDP, but still...
Well, done Gordon. Hope you enjoy the slow handclap.
........the Nu Labour Anthem has now been re-named 'Things Can Only Get Bitter'. In addition, the impact of Debtquity Withdrawal is now urgently under review.
Yes, but he does have a point.
What does this paragraph mean?
It means lending to the UK Govt is still regarded as safe.
Not for much longer, me thinks.
It's a quote from the Telegraph SVEN, which according to YOU only publishes Tory lies.
Nevertheless, I can firmly say that UK Plc has absolutely nothing to worry about over this matter. Much of this debt is in fact investment in UK's human resources. Consider this.
How much of HMG's annual budget is ploughed into creating and sustaining non-existant jobs within the civil service? Moreover, how much of HMG's annual budget is ploughed into supporting the lifestyles of the welfare class?
I have no doubt that both these groups of individuals will have wisely saved and invested this financial support in such a way that when things turn a little sour, they will have no problem in repaying this investment in the future by seeking proper jobs, paying proper money, making significant PAYE contributions, and thus making a contribution to society rather than simply expecting handouts.
Problem solved. Not!
So it is really nice to see Alistair Darling puffing about this:
UK helps Liberia take big step towards debt clearance
07 February 2008
The UK today assisted Liberia in taking a big step towards poverty reduction by helping it clear the arrears on debt it owes to the IMF and African Development Bank (AfDB).
The Chancellor, Alistair Darling said:
"I want to congratulate Liberia on having secured the necessary financing to clear the country's arrears to the International Monetary Fund, World Bank and African Development Bank. The Liberian Government's sustained efforts over the past year to achieve this outcome have been an excellent achievement; these efforts have been crucial in mobilising the necessary support from the international community and placing Liberia firmly on the path to comprehensive debt relief. I am also pleased that the UK has been able to promote and contribute to these financing solutions, a clear demonstration of our ongoing commitment to helping the poorest countries find a comprehensive solution to their external debt problems."
Ok not a lot but how about concentrating on finding some solutions to our debt problems, you cnut?
The issuer's (in this case HMG) capacity to meet the commitment on the obligation is extremely strong, is I think the wording they use from memory.
S & P are a ratings agency and are saying that taking on Government debt or 'gilts' is still considered extremely safe.
It's like living in a Monty Python film, except there's no laughs. Joe Public generally doesn't understand how serious things are. Sub-prime has only just started; $97billion liquidated in CDOs, and the monoline sector to come crashing down still to come.
If it's safe then what's the problem?
It's a veiled threat from S&P that if things get worse we will lose our AAA rating. This is very serious and will have knock effects for the economy as the Government will have to pay more to borrow money to prop up the current Treasury policies. Gordo will have no choice but to raise taxes or sell billions worth of Govt assets. Problem with fire sales is that you weaken your position with each sale - essentially, downgrading the security of exisitng loans.
In short, we have borrowed too much and the watchdogs are nervous.
Brown has really f@cked up and the chickens are coming home to roost.
Whilst Northern Rock was not the govts fault and they were left without options and the bailout package exposed the truely precariously financial position of UK plc.
Imagine if the average family went out and got credit to buy a Ferrari and were only just able to meet the interest only repayments on the loan ( i.e the bank will own the car at the end of the loan plus the family will have to pay back the actual full cost price of the car) and then the boiler f@cks up in the family home - no money to pay for emergencies.
If you understand that analogy, you begin to understand how New Labour have been managing our economy for the past 10 years.
So if they're made to add all the PFI assets which are currently hidden in nobody's balance sheet, to give the impression of prudence, the whole thing will truly come tumbling down like a house of cards.
What chance my getting a pension in 2018 then?
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