George you are so money supermarket

#3
Georgie Osborne was doing a bit of housework and lo and behold he's found £10 Billion down the back of the sofa. What does he do with it? Read on:

BBC News - UK offers £10bn loan to the IMF
Stolen with no shame from another website. An explanation as to why it isn't as mad as it first appears.

"Say I have a £500,000 house with a £200,000 mortgage, and can just about service the mortgage. A relative needs an emergency loan of £50,000, which we can raise against the mortgage, pay 3% and lend to the relative at 4.5%.

So we do have £50,000 to spare."
 
#4
Could be worse, we could be gifting them it.
 
#5
"It says its contribution to the IMF is not public spending. All UK loans to the IMF are financed from the UK's Official Reserves, remain UK assets and do not contribute to public sector net debt."

So who owns the UK then? Is it me or is that just dodging the point!
 
#7
So we are skint cuts all over the place and we can find a spare ten billion to lend is the Govenment totally mad.
Charity begins at home I do not give a flying fu@k about any other country going tits up UK plc should come first.
When is this Govenment going to grow a set of balls and say NO enough is enough.
 
#9
Stolen with no shame from another website
"
By whom?

Any interest he makes after he's finished baling out the Euro will be offset by the amount paid out in benefits to those being made redundant by his taxation policies.
I've always voted Conservative but not for much longer.
 
#12
No, the government is lending at a profit, it's making money.
You mean it's supposed to be? Same as buying up the banks - good when their share prices are low, IF you're going to hang on to them (maybe to sort the buggers out) and then flog them. But knowing the UK Govt, they'll just sell them when they feel like it, unless they members can line their own pockets with some of the "Profits" raised.
 
#14
No, the government is lending at a profit, it's making money.
The government is lending money it previously told us it didn't have. Just goes to show, dunnit?
 
#15
It is on our Governments interests to keep the worldwide financial system otherwise known as the 'ponzi' going as long as possible. Magic Money illusionary growth endless energy reserves what could go possibly wrong?
Not to do sends the World to the other place. That is completely untested and an unknown entity.

Its all about confidence you know, Once that confidence goes (and there have been some stern tests on it lately with more to come) it all falls apart.....
 
#17
I can honestly say,I thought Gordon Browns abysmal efforts as Chancellor,would never be surpassed,sadly I think Osbourne is going for the record.

He really must walk around with his head up his arse,either that or his Mummy won't let him talk to those nasty ordinary people,who pay taxes,and expect him to spend more on them than,the profligate spending *********,in the EU! :???:
 
#18
So we are skint cuts all over the place and we can find a spare ten billion to lend is the Govenment totally mad.
Charity begins at home I do not give a flying fu@k about any other country going tits up UK plc should come first.
When is this Govenment going to grow a set of balls and say NO enough is enough.
So the government shouldn't give other countries our money, which they can then spend to buy British goods and services? I know thats a rose tinted view, but its the best case scenario for this. Worst case is the govt makes money by lending this.
 
#19
So the government shouldn't give other countries our money, which they can then spend to buy British goods and services? I know thats a rose tinted view, but its the best case scenario for this. Worst case is the govt makes money by lending this.
Good plan. Like all the money we give to India is being used to buy British-made warplanes you mean?
If it wants to earn interest on that dosh, lend it to British industry.
 

Alsacien

MIA
Moderator
#20
There is a lot of paranoia still out there at the moment, most of which has no basis.
An easy win is to have a big backstop so that everyone knows even the most unlikely worst case scenarios can be covered, but that would mean too much at the moment, so it gets political. The BofE has no more cards to play, unless the rest of the world starts to pick up we will steadily become more and more screwed, the only thing saving us right now is a target rich environment.
If banks cannot get finance, they go to the government; if the government cannot raise the cash they go to the market - which may be in a tailspin at that point. This is why the IMF is important because it can bridge a gap until folks calm down a bit.
The UK has the biggest banking exposure in Europe, a problem pretty much anywhere in the world lands straight in The City instantly, so the UK has a strong vested interest.
Pledges to the IMF are a no-brainer, they pay interest and have never in the IMF's history been defaulted on. It's just a small investment with reserves that has become politicized, it won't stop you getting the bus stop the council promised...
 

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