Her Majesty's Government in debt to the tune of £1 Trillion.

Discussion in 'Current Affairs, News and Analysis' started by AIR FILTER, Jan 24, 2012.

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  1. I believe you missed a zero out.....

    Thats £1,000,000,000,000 we owe.





    Thanks Gordon
     
  2. that is a lot of cash! i know this must sound like a silly question. but what would happen if we told them to stick it and not pay it back ???
     
  3. Who do you think "they" are, you ****ing moron?
     
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  4. I can still remember when a billion was 1,000,000,000,000 but the Americans made us change it to 1,000,000,000.
     
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  5. well i dont know! do you? i understand that the uk goverment borrows money by issuing gilts ect but who owns them??? and what would happen if they are not payed back??

    so if you could please explain it to me i i could stop been a ****ing moron.
     
  6. Then we wont be able to borrow any more money and everything welfare,education,housing,defence,the public sector, Has to be paid for by taxes raised. Think Greece but worse when the great British underclass decides to blame them foreigners for "taking our jobs" Because there is no money left for welfare.
     
  7. 'they' are a mix of foreign and domestic high street banks, pension funds, investment banks and governments. So if we defaulted, ordinary people could lose their savings, pensioners could see their schemes go bust, investment banks would whine, and governments would be cheesed off. It would also mean that we would not be able to borrow any more money, which we need to do to keep government spending at this level. If the UK defaulted the World financial system would collapse, making 2008 look like a minor inconvenience.

    It's in no ones interest that we default. We are currently borrowing at rates below the rate of inflation, meaning we are actually making money*.

    *if people are buying bonds at rates below the rate of inflation because they can't find anything worth investing in, we truly are fcuked.
     
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  8. To Be fair at the time of the election didn't Projections state borrowing would rise for the first two-three years, then fall?
     
  9. As long as the economy performed as expected by Gideon.

    ah.
     
  10. There's a very long blog about it here.I've not read it all,could you report back and let me know if it is worth reading? Ta.

    What happens when a country goes bankrupt? - Daryan Blog
     
  11. Just so you guys know how big a trillion is... In comparison, if you were to count 1, 2, 3, 4, 5... it would take you thirty years to reach a billion.

    You want to count to a trillion? There's not enough time in the history of mankind.

    DC
     
  12. Brotherton Lad

    Brotherton Lad LE Reviewer

    Here's some basics:

    UK National Debt | Economics Blog

    It's about £16000 per capita. If you like, think of it as mortgaging your children's future and we have to paddle hard just to keep still.

    Govts generally spend more than they raise by taxation, they borrow the rest. That works so long as people (here and abroad) have faith in the ability to pay the interest. If the credibility fails and the emperor is seen to have no clothes, the music stops and the sky falls in.

    Possible consequences range from merely rampant inflation, industrial strife and civil unrest to civil war, revolution, and international wars, and the whole four horsemen of the apocalypse.

    Have a nice day.
     
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  13. :)
    Would you rather have had Labour in charge?

    But that's a bit of a non-argument really.