Public sector debt is equivalent to £85,610 per household

Discussion in 'Current Affairs, News and Analysis' started by Ord_Sgt, Oct 19, 2009.

Welcome to the Army Rumour Service, ARRSE

The UK's largest and busiest UNofficial military website.

The heart of the site is the forum area, including:

  1. Ord_Sgt

    Ord_Sgt RIP

    'kin hell, its a lot worse than I feared if this report is anywhere near accurate. Even if it isn't the current government admit it is upwards of 800 billion, which is certainly an underestimate anyway, PFI not being in that figure.

    Payback is going to be a bitch. :x

    Full story in The Times.
  2. That's what you get with 12 years of 'Fiscal Prudence'
  3. Yep - and the public sector union has of course branded the CBI a group of loonies for stating the obvious...
  4. And guess who will be re-paying it?
  5. And I was stupid enough to think I was debt free
  6. OK, clearly I'm going to have to go over this again.

    Public sector pensions and PFI are not debt, they are money that has to be spent in the future. Example:

    If you needed to spend £10,000 on food to take you to the end of your life, you would not have any realistic choice in spending it - you spend it or you croke. However, you would not therefore be £10,000 in debt and/or broke - it would simply be that £10,000 of future income would have been allocated to the take of providing you with food. In the same way, to state that X amount of pensions are 'unfunded' is to say that we will need to spend money in the future that we don't yet have: it isn't to say we are X amount in debt, it means that X amount of money to be collected in the future has been allocated to pay pensions.

    The CBI has a vested interest in talking up Britain's debt problem because if governments borrow money, it causes the cost of borrowing to the corporate sector the CBI represents to go up. As a result, if they can scare government into a drastic cutback in borrowing, their members costs go down. Cutting back on public sector employment also works for them, as it causes an increased poor of labour to develop that their members can hire at a reduced rate of pay.
  7. Oi Ord_Sgt stop trying to distract us from the real issue! CO2 and climate change.... The Dear Leader can't be distracted.
    He has his eye on the real threat! Never fear his other eye (the one that doesn't work) is watching over the small matter of the public finances! :wink:

    Now go home turn the lights off and stand in a bucket of cold water.
  9. Ord_Sgt

    Ord_Sgt RIP

    Well according to official figures and forecasts we are running up our debt at about 7k per second.

    Pensions are not debt, unless of course you don't have the tax revenues to pay them along with everything else, then you need to borrow it, hey presto, more debt. Fiddling while Rome burns springs to mind.

    Whatever way you look at it, thats a lot of money that needs to be repayed, over and above the cost of running the country. It's unsustainable so cuts, and drastic ones at that are inevitable.
  10. msr

    msr LE

    And what is debt if it is not money which has to be paid back in the future? PFI is the governmental equivalent of what Enron did - i.e. hiding liabilities off your balance sheet.

    Sorry, any credibility which you had has now gone.

  11. Public sector pensions, with terms and conditions that could not be supported in the private sector, alter this to a standard retirement age of 65, should save a few quid.

    PFI a method of off-setting debt in the most expensive way possible.

    See below a pictorail example how PFI works.

  12. Nothing has to be paid back in the case of pensions as nothing has been borrowed. You could make a case for PFI as debt, but that then again the cost of PFI is paid for by money generated by annual taxation. You can't be in debt for money you haven't spent - see my £10,000 food bill example.
  13. Ord_Sgt

    Ord_Sgt RIP

    If the figures are to be believed, since my post and MSR's, 17,220,000 has been added to the national debt. Who cares what it's being spent on, PFI, pensions or bloody digestive biscuits, its still got to be repayed at some point, everything else is bollox.

  14. How much to they pay you to post this b0llox?
  15. I could ask you the same question - anything to add?