SunnySideUp

Don't read this if you scare easy ....... it makes a frightening forecast.

Will Britain go bankrupt? - MoneyWeek

"Personal debt in the UK, at nearly £1.5trillion, has overtaken annual GDP – in other words, we owe more than we produce in a single year. On top of this, company borrowings add nearly another £2 trillion to the debt pile.

But the real 'bete noire' is what the government is racking up. Numis has totted up the numbers and comes to a terrifying conclusion: underlying public debt next year will reach a staggering 282% of annual GDP.

The firm's estimate of unfunded public sector pension liabilities - that's money that the government will have to pay out in pensions but which it doesn't actually have right now - comes to almost £3trn. Add it all together, and Britain's total debt mountain will stand at over 500% of GDP by 2010.

To put this figure in context, it's far bigger than at any point in our history, including wartime. And this is our fiscal position as we go into possibly the biggest recession in living memory. It's like owing more than five times your gross income - just before you lose your job"

Holy Crap!!

FlightMan

It's under control Pete. We just hyper-inflate out way out of this debt.

Relaaaaaaax.

hodgy0_2

didn't we go belly up in the 70's -- the world goes round, the richer get richer and the poor get poorer

still rather have my money in property, than equity or cash

SunnySideUp

I would rather have my money in GOLD!

You can sell that for any currency in the world.

J4CKO

iTrader: (1)

Pete, yes, its all going to Ratsh1t, go and hold up in the hills for six or seven years, we will give you a shout when its all over.

SunnySideUp

Where did the 6 or 7 years come from?

hodgy0_2

mmmm and if you let a radioactive bomb off in Fort Knox, thus destroying a large percentage of the remaining Gold reserves

thats just given me a great idea!!!!

SunnySideUp

Radioactive Gold has some great medical treatment properties.

hodgy0_2

i might ask the metallurgists on the thread below for confirmation of that

rossyboy

iTrader: (8)

Saw a documentary by CNBC on Wednesday called "House of Cards".

It explained all about the sub-prime lending in the US that our banks so willingly took a slice of. If you haven't seen it yet and have an interest in all this, I can throughly recommend it. Utterly astonishing the type of people that were given loans. Ghetto destitute one minute, living in suburbia heaven the next.

On again next Wednesday on the CNBC channel.

http://www.cnbc.com/id/28892719

Gordo

Where are all the muppets that usually defend New Labia's enthusiasm for racking up mountains of debt for us? Pete, weren't you one of the sycophants who loved them?

EddScott

You also have to have a bird with some fruity name.

Gold is actually due for a slight correction before going up again.

As for bankruptcy its not like it was in the old days. You just fill out some forms, say you can't pay and your really rather sorry.

All clear in a few years to do it all again

Gordons isn't stupid you know - whats good for the great unwashed and all that!

hodgy0_2

what this economic period has laid bare is the fundemental truth that the ecomony exists, not for the greater good but for the good of the great

i find it amazing people put up with it but they do and will again, see you all in 20 years

jjones

so let's have it in black and white then pete, you admit that brown was a complete prat rather than the financial genius you had him down as?

DEEDEE

I think were just up a creek without a paddle, We are even printing more money, ?? I seem to think all this extra money will boost Manufacturing, pity we dont have any, so does that mean we are Boosting all the other Countries of the World. Keep Paddling

EddScott

I've told you before this doesn't have to be so.

SunnySideUp

I was quoting from an article ..... I did not state my view about the accuracy of such, it is a scary article however.

The world seems to agree with Brown, that we need to spend ourselves out of the mess we are in ...... it seems to be the only thing we can do as a country - to do nothing (the Tory way) is a far, far, worse thing to contemplate.

Leslie

It would be interesting to know what your view actually is now. You never accepted what was happening before the recession reared its head even though it was mentioned that this country was existing on borrowed time with all the debt that was mounting up and the way the people had been encouraged to keep borrowing and spending beyond their means. You seemed to ignore the treasury's part in all this with its overborrowing, the use of so much PFI which is a very inefficient way to generate new buildings etc. and the increasingly profligate spending and borrowing by the govt. at the moment. Nothing like firing 15K civil servants with full compensation etc as a way on the face of it to save money and then hiring another 42K to replace them is there?

As I understand it, the other Eu countries do not support Flash's ideas about "fiscal injection" with borrowed cash and printing money, and the US President is not too hot on his ideas either. The Chancellor is trying to con the Eu countries into following their ideas in Horsham right now before the G20 conference later. I gather they are not keen!

This business about Cameron and his lot doing nothing is a total and unfair exaggeration although we don't know what they would do I agree. The first thing surely is to stop the dreadful waste of our cash which is being chucked down the plughole for all the good it is doing and then start from there. Whatever is done-it will be painful for us!

What's your take on all that SSuP?

Les

The Zohan

^^^He Also fails to regognise that the FSA is a gutless, not having enough of the right calibre professional, experienced people working for it actually regulate the industry and help prevent the chaos which went on which could of so easlit cut down on the problems we have now...

J4CKO

iTrader: (1)

Conservative estimate of how long things will need to get back into a new groove, I think the financial system is going to go through a Reset (cant think of a better word), after a global collapse. Money is a way of providing a consistent barter system for human work, effort, good, services, endeavour etc and its a good system but its got f*cked up through greed and too many fat b4stards taking too much of the pie.

We have got ahead of ourselves, the whole thing has got so confused, money lent on loans a hundred levels deep, money that didn't exist, money that nobody had earned (thats why printing more results in inflation, the same amount of effort spread across more units), the effort, endeavour whatever hadnt been done and then lent to those who wouldn't pay it back, humanity has got overdrawn in its quest for more, bigger, better shinier and the reality has finally hit home, I reckon six or seven years for things to re-establish themselves, hopefully in a more pragmatic, less greedy and more transparent way, hopefully more wealth will be generated by more people contributing to society rather than simply taking, the welfare state is great but the connection between effort and contribution to society and its relation to the bottom line and the success of society needs to be re-established (established ?).



Thats all bollocks, just want you to go to the hills for six or seven years

















Love you really Pete.

dpb

Like some old gramaphone record

unclebuck

Will Britain go bankrupt?

Probably. It's taken Nu Labour just 11 years to turn what was the fourth strongest economy in the world into a complete basket case.

Makes previous Labour governments look like amateurs.

Bash0rz

how?
they can print money whenever they want!

Leslie

You must have your wheelbarrow ready and waiting then!

Les

hodgy0_2

Interestingly I was talking to a friend last night who owns several telecoms operations that provide/sell leads for debt Management Company’s, as you can imagine quite a booming business at the moment

Anyway he said that all the debt management co’s he deals with (and he deals with a few) are run by the same people that 4 to 5 years ago were punting the self cert (liar) loans/mortgages into the market.

Think about that for a second

So they make money on the up and down -- nice

SunnySideUp

They are the people who access an opportunity wherever it presents itself - they are the achievers of the world ....... I take my hat off to them, they profit out of the greed and stupidity of some people.

Leslie

So no more code of moral ethics then!

Les

Timwinner

iTrader: (3)

Probably be ok to be honest. If its not then at least were all F****d at the same time