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Jake

If The Uk Is Bankrupt...

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Ok stupid question perhaps. But I still don't fully understand the implications of the country being bankrupt. Do all the savings just 'disappear'?

Can anyone put me straight?

I've lost the plot but dont want to lose my pot, if at all possible.

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Ok stupid question perhaps. But I still don't fully understand the implications of the country being bankrupt. Do all the savings just 'disappear'?

Can anyone put me straight?

I've lost the plot but dont want to lose my pot, if at all possible.

They can always print more pounds so you won't lose out in nominal terms, but the purchasing power of your savings might be destroyed.

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Ok stupid question perhaps. But I still don't fully understand the implications of the country being bankrupt. Do all the savings just 'disappear'?

Can anyone put me straight?

I've lost the plot but dont want to lose my pot, if at all possible.

Future and present tax payers and good citizens not yet born will pay the sum required to balance the books.

PAYE nat insurance prescription charges fuel tax council tax VAT and some not yet invented you get the idea?

Mony can be loaned as required and interest payments are actually quite cheap.

Then we have the issue of gov debt via the uk debt office gilts and such whch are at historic low returns if uk needs more money it can get loads by issue of higher returning gilts and bonds.....its endless.

People on this forum are looking for value house prices good look to em,.... the real problems of the future for the twenty and thirty somethings is TAX DEMAND.

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The UK is not bankrupt and you will get your pounds back. If we go down the quantitive easing route, inflation will pick up. As a hedge, go for tax-exempt inflation-linked bonds. At RPI + 1% they are the best buy on the market outside of an ISA, even with RPI falling.

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The UK is not bankrupt and you will get your pounds back. If we go down the quantitive easing route, inflation will pick up. As a hedge, go for tax-exempt inflation-linked bonds. At RPI + 1% they are the best buy on the market outside of an ISA, even with RPI falling.

Ahhhhhhhhhh music to my ears, roll them presses boys....yyyyyeeeee haaaa

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Those interested in NS&I index linked certificates - see Grey Shark's post under Cash ISA and Investments sub forum.

Basically there he mentions something about their value going down as RPI drops, so your cash-in value can go up or down month to month is what is implied.

I have no idea if that is so - if it is then well done GS for spotting that.

All - do your own research on the above Certs, but read GS's post because if true then well worth knowing!

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Those interested in NS&I index linked certificates - see Grey Shark's post under Cash ISA and Investments sub forum.

Basically there he mentions something about their value going down as RPI drops, so your cash-in value can go up or down month to month is what is implied.

I have no idea if that is so - if it is then well done GS for spotting that.

All - do your own research on the above Certs, but read GS's post because if true then well worth knowing!

Their value cant go down. Check the details.

Index Linked Certs

Their worth may though !!

I have loads of them. If they become worthless then I will have more important things to worry about rather than little bits of papers with Lizzies head on them. :ph34r:

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Ok stupid question perhaps. But I still don't fully understand the implications of the country being bankrupt. Do all the savings just 'disappear'?

Can anyone put me straight?

I've lost the plot but dont want to lose my pot, if at all possible.

they get locked in the compensation scheme and your savings are deflated to worthlesness, in the 3-4 year period it takes to claim your money back. equitable life still has not paid compensation and its been 3 years to date. do you think you will just get a check back in two weeks if a bank goes bust with your life savings in it ?

this way the banks get your help to resolve their own mistakes.

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Guest sillybear2
Ok stupid question perhaps. But I still don't fully understand the implications of the country being bankrupt. Do all the savings just 'disappear'?

Can anyone put me straight?

The govt will never default on Sterling based bonds/loans, they will simply print money to meet liabilities, everyone will get their money back but its purchasing power in a hyperinflationary environment means £1k might only get you a loaf of bread.

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As long as the BoE can print we won't go bankrupt as everyone will get there money back, it may effectively be toilet paper but you will get something that claims to be money but will in fact buy you sod all.

Unless you protect with index linking.

as in index linked gilts

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Guest absolutezero
Their value cant go down. Check the details.

Index Linked Certs

Their worth may though !!

I have loads of them. If they become worthless then I will have more important things to worry about rather than little bits of papers with Lizzies head on them. :ph34r:

What the poster was saying is that he calculated their value in a month when RPI was comparatively high but when NS&I told him the anniversary value of his savings it was lower than his calculation.

Seems they only use the value of RPI on the anniversary of your purchase rather than some kind of averaging.

So if over the year RPI is 5% and the month of your anniversary it falls to 0.1%, you get the 0.1%, not the 5%. :angry:

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Guest sillybear2
Unless you protect with index linking.

as in index linked gilts

You're a naive fool. In a hyperinflationary holocaust these indexes mean nothing, in Zimbabwe the official inflation rate, ridiculous as it is, underestimates and lags what's going on in the real economy.

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Unless you protect with index linking.

as in index linked gilts

Serious question, are there fixed terms? Can you pull your money out at any time without any penalties?

As the above poster says, they can always frig the RPI figures... Just take out and put in different things, take out TV's, put in houses..........

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What the poster was saying is that he calculated their value in a month when RPI was comparatively high but when NS&I told him the anniversary value of his savings it was lower than his calculation.

Seems they only use the value of RPI on the anniversary of your purchase rather than some kind of averaging.

So if over the year RPI is 5% and the month of your anniversary it falls to 0.1%, you get the 0.1%, not the 5%. :angry:

Yes it does indeed. Year on Year index is what matters.

So I would imagine that the next year may be a good opportunity to purchase some ? If inflation does kick off you may do allright. Whereas if you bought last year your first years return could be simply your 1% bonus.

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Serious question, are there fixed terms? Can you pull your money out at any time without any penalties?

As the above poster says, they can always frig the RPI figures... Just take out and put in different things, take out TV's, put in houses..........

Read the T & C's on page 1 of this thread. ;)

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You're a naive fool. In a hyperinflationary holocaust these indexes mean nothing, in Zimbabwe the official inflation rate, ridiculous as it is, underestimates and lags what's going on in the real economy.

I thank you sb for your opinion, I have been called worse, the uk will neither be in a holocaust or hyperinflation Zim style.

What you need to worry about is tax demand to balance the books.

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Guest sillybear2
I thank you sb for your opinion, I have been called worse, the uk will neither be in a holocaust or hyperinflation Zim style.

I bet you £500m we will.

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What the poster was saying is that he calculated their value in a month when RPI was comparatively high but when NS&I told him the anniversary value of his savings it was lower than his calculation.

Seems they only use the value of RPI on the anniversary of your purchase rather than some kind of averaging.

So if over the year RPI is 5% and the month of your anniversary it falls to 0.1%, you get the 0.1%, not the 5%. :angry:

If RPI is 0.1% in the month of the anniversary then it was 0.1% over the year. The idea is that your initial investment has more spending power at the end of the year than at the start, nomatter what happens to prices in the mean time.

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  • 285 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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