Wednesday, Sep 16, 2009
Interest payments
Telegraph: Gordon Brown 'misled Commons' over spending cuts, says George Osborne
Leaked treasury documents show expected cuts of 9.3%, but more to the point is estimates of debt servicing costs by 2013/2014 will be 63 billion. For 30 million workers that is 2 grand each on interest payments from an average UK salary of 29/30K a year. GB has certainly sailed close to the wind. People will also have to cover their own debt servicing costs against privately held debt. You can't help but wonder if this isn't a debt death spiral already.
Posted by stillthinking @ 11:09 AM (1118 views) Add Comment
27 Comments
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1. str 2007 said...
Somewhere there's a clip of Gordon Brown saying 'debts not a bad thing' 63 billion in interest payments. That is absolutely disgusting. What a waste of money.
It would be one thing if it was a massive investment to produce far more money, but it isn't.
Labour have hugely overspent in the good years, totally failed to see a huge crisis emerging on the horizon and then simply borrowed much, much more to keep the whole shambles going.
What a mess, I really don't know how he can face people. Daniel Hannan http://www.youtube.com/watch?v=94lW6Y4tBXs had wise words a while ago. Still worth watching again.
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3. stillthinking said...
moodys suggested that there would be an additional 150 billion of losses to hit the nationalised banks next year (commercial property tanking even worse than houses). the situation looks a bit bleak.
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5. flashman said...
Come on, you wicked buggers. Show yourselves. The coming election will be the biggest exorcism ever seen. All the ghoulish little creeps will bleat on about paedophiles and security risks until the last possible moment and then like the Nazis, they’ll vanish into the air and spend the next ten years denying they had anything to do with it.
6. letsgetreadytotumble said...
But don't we want Brown and Labour to stay at the next election? If we want to maximise house price reductions, don't we want the economy to be as crippled as possible. Surely Brown is good for making housing more affordable.
I'd love to see Labour crushed, and it would make for an enjoyable nights viewing on TV, but selfishly, I want house prices to be crippled, and as far as I can see, Brown is the best candidate.
7. str 2007 said...
There would be a certain divine retribution if Labour got back in to sort out the mess they created.
But can we afford it.
Imagine the debt mountain in another 5 years if he's in control.
8. jackas said...
One thing rings in my ears from Labour:
"At any cost".
9. mountain goat said...
letsgetreadytotumble - If we want to maximise house price reductions, don't we want the economy to be as crippled as possible. Surely Brown is good for making housing more affordable.
I don't want the economy crippled. I want the bubble to deflate, which in the long run will be better for the economy, because people won't have to spend their whole working lives paying off an over priced home.
10. need-a-crash said...
letsgetreadytotumble - "If we want to maximise house price reductions, don't we want the economy to be as crippled as possible. Surely Brown is good for making housing more affordable."
At the 2005 election I was already aware that a recession (and resulting hpc) was my only hope of affording somewhere to live and thought Labour were more likely to deliver a recession... but because I'm such an unselfish chap I voted for the good of the country and voted Tory!
However now Labour have shown their true bail-out mettle, I think it's safe to say they are more likely to try and prop-up house prices than the Tories. Although as markwadsworth says I accept that the Tories are essentially still the blue corner of the homeowners party.
11. str 2007 said...
Agreed Mountain Goat
With a crippled economy, the odds are you/we won't have enough money coming in to afford any sort of mortgage.
12. uncle tom said...
Why is it so difficult for any politician to get to the core of the issue? There are six million public sector jobs, and countless others who are employed under government funded contracts.
It is pretty obvious that a 10% reduction in the public sector is not going to be enough. The numbers only provide a fifty per cent reduction in the budget deficit over five years IF the economy grows far faster than anyone seriously expects.
Everyone who is in work creates work for others, and they in turn provide work for yet more.
There could be another five million jobs at risk as the culture of 'living on air' unwinds; as the bubble bursts..
Yes Brown is a liar - he has always been a liar, and he seems bereft of conscience when he lies..
.. but having made the point, the Tories need to move on to addressing what to do next.
What is important is the need to create the conditions for new employment - enterprise and construction need to be really encouraged, and that means a massive bonfire of the bureaucratic obstructions; the great winding back of the state (including europe)..
..that's what I want to hear the Tories talking about tomorrow..
13. matt_the_hat said...
Having Labour in for another 5 years wouldn't bother me but its when I get put on the national DNA database for doing nothing wrong and give me a control order but won't tell me why, i.e. you can't leave the UK, is when I will get worried. GDR (Gordon's Democratic Republic) is only one election away.
14. letthemfall said...
What we need is a new political party. The two main parties are corrupt and the wimpy UKIP and BNP are clearly not up to the job. I suggest formation of the HPC party, with the above as foundation members. When the HPC party is elected, might I suggest the following posts in the new govt:
PM: andrew (natural leadership skills and maturity of outlook)
Chancellor: flashman (works in the City and hates everybody)
Chief Whip: stillthinking (enjoys meting out a good thrashing)
Minister for Truth: uncle tom (knows a liar when he believes one)
I'll vote for you.
15. 51ck-6-51x said...
matt_the_hatt said, "...is when I get put on the national DNA database..."
- I wholeheartedly concur.
We must fight any plans for state government databases; they will only cause more problems than they solve and will lead to an even greater concentration of power than now.
My line of thought: By all means they may issue me with a number to remember so I can prove I am me so long as Ido not get amnesia ( pretty rare, and provable ), but I do not need them to prove I am me thank you!
16. 51ck-6-51x said...
( oh and the hidden assumption in my line of thought - any state should be acting in the interests of the people - that is their only valid function. )
17. flashman said...
letthemfall: Gotcha!
Can we also add you to the cabinet? We need continuity and a dyed in the wool Labour supporter is just the ticket.
Don't take it seriously. It's just a bit of fun.
18. uncle tom said...
Minister of Truth eh?
Hmm - not quite my style..
..mind you, if that covered the media, I'd love to be the guy who stood up to announce the abolition of the licence fee.
Europe minister could be fun "what part of the word < NON > do you not understand?" - and reducing MEP's salaries to the minimum wage..
..you could of course go on strike guys - but as no-one would notice, what do I care??
19. smugdog said...
Osborne appears weak. I still like Darling when he adopts a bit of an edge and gets Gordon's jowls twitching, but Osborne, I'm not sure.
20. sovietuk said...
" i.e. you can't leave the UK, is when I will get worried". Most people on here will value the fact that more or less we still broadly speaking live in a democracy and do have the right to vote and can leave the country by virtue of the fact that to have a passport is a basic right. Labour have put forward the idea of removing people's passport for certain types of things they dislike (some of them only civil issues/not criminal). Many people posting on here will have relations that fought bitter unpleasant wars for these basic rights of citizens. Labour politicians should be treated with total and absolute contempt for the way they behave and some of the ideas they propose.
21. inbreda said...
Can I be in the cabinet?
Do you have a need for sarcasm?
22. mystie010 said...
to matt_the_hat post 13 - I totally agree with you. If this shower get in again then it won't just be house prices we will have to worry about it will be civil liberties. This DNA database thing is sinister - no one is going to scan my eyes I'd rather go to jail first. They are already trying to get our kids by the back door with fingerprints taken before they can use the computer systems at school. It's really freakish the way they want to know the far end of a fart if you will excuse my language, but this DNA database topic really gets me fired up!
23. letthemfall said...
inbreda: You laughed at one of my jokes once so you can be leader if you like.
flashman: I don't take too much seriously here, and I wouldn't claim to be dyed in any wool, especially those of political colours.
uncle tom: Well, perhaps you could be Margaret Thatcher then.
When are the hustings?
24. nomad said...
This thread reflects the frustration that exists throughout the country and is expressed in blogs, forums and comments to newspaper articles.
What we still have is our vote but we still have to rely on the media and spin from the parties to decide how to use it. I'd like to see a site that gives complete information on every parliamentary candidate constituency by constituency. Age, career, expertise, hobbies, family, if sitting expenses taken during the last five years and salary earned during that time, inside leg measurement, the lot.
That would help us decide.
25. nomad said...
@24. I'm liking this idea. Comments on individual candidates will be allowed - but not anonymously - and a right of reply. If someone wants to inform us that "this guy is a self serving airhead" then I want to hear it, likewise "this guy's an ar%eh&le".
This can change politics and all our lives - and it's a business opportunity, the traffic would be enormous.
26. shipbuilder said...
Given the performance of the Bush government, anyone who thinks that a Tory government would slow our erosion of civil liberties in any way is seriously naive. I despair.
On a side note about the US, I remember reading somewhere that a central part of the neo-conservative doctrine/manifesto was that a budget deficit was perfectly acceptable, if not even encouraged.
The conspiracy theorists may over-dramatise it, but there has been a fundamental shift in the political and economic landscape over the last decade or so and it is not changing back.
27. nomad said...
24&25. The lonely enthusiasm at the end of a dying thread.