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'$10 Trillion' Credit Crunch Cost

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http://news.bbc.co.uk/1/hi/business/8177814.stm

The global credit crunch has cost governments more than $10 trillion, the International Monetary Fund (IMF) says.

The IMF says that rich countries have provided $9.2tn in government support for the financial sector, while emerging economies spent $1.6 tn.

Around $1.9tn represents up-front expenditure, while the rest is made up of guarantees and loans.

Governments are likely to recover most of these sums when the world economy recovers, but big deficits will stay.

The financial bail-out costs include:

Capital injections: $1.1tn

Purchase of assets: $1.9tn

Guarantees: $4.6tn

Liquidity provision: $2.5tn

The IMF has also been revising its estimates of the cost of the global downturn on government budgets.

It now says that overall, the rich countries of the G20 group will suffer a budget deficit of 10.2% of economic output or gross domestic product (GDP) in 2009, the largest for most countries since World War II.

The largest projected budget deficits are in the US, with 13.5% of GDP, the UK, with 11.6%, and Japan 10.3%.

However, the UK will have the largest projected budget deficit of all G20 countries by 2010, at 13.3% of GDP, compared

to 9.7% for the US.

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Oh well at least house prices are going up

house prices always go up when there is $10 trillion of debt, mass unemployment and worldwide recession. always has done, always will do.

Edited by mfp123

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house prices always go up when there is $10 trillion of debt, mass unemployment and worldwide recession. always has done, always will do.

in the words of the sage and ertwhile philosophical music group, The Prodigy :

The World's on Fire!

The World's on Fire!

The World's on Fire!

.. and it's about to expire.

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dont worry. just because we will have a 13% budget deficit, a 100% debt to gdp ratio, and unemployment at 3 million, its just a blip. it will all blow over, its fine, nothing to see here.

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in the words of the sage and ertwhile philosophical music group, The Prodigy :

The World's on Fire!

The World's on Fire!

The World's on Fire!

.. and it's about to expire.

The Prodigy vs PWEI:

"F*ck them and their law".

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And what's the cost of servicing this $10tr?? @5% that's a cool $500bn a year isn't it the world economy needs? Even at 1% we'd need to find $100bn a year to service the bailout costs.

The UK alone has just printed about £125Bn, so that should be alright.

Have you forgotten that debt is wealth?

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The UK alone has just printed about £125Bn, so that should be alright.

Have you forgotten that debt is wealth?

Sorry one of my off message moments. Gordon will be upset.

Clearly I need a bit more brainwashing so I don't have these momentary lapses.

Clearly servicing the debt isn't an issue when we can just print some more money or borrow money to pay the interest.

Please don't get confused by my previous post, it's just misleading nonsense aimed at confusing the masses. There is nothing to be worried about.

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some people get concerned over nothing. theyre just numbers. heres some other numbers for you.

japans debt to gdp ratio stands at 170%. 18% of tax revenue goes towards paying off public debt. this debt is only sustainable because interest rates are at 0.5%

they are so far in debt that if japan increased interest rates by 1% then interest payments would eat up 40% of government tax revenues.

japans debt expected to go near 200% of gdp next year.

japan saw a record 1.7% deflation today, meaning that the debt is increasing both nominally and in relative terms at the same time.

still im sure this will all blow over pretty quick.

theyve been in the doldrums for 2 decades due to massive debts and getting worse, but im sure we'll be fine.

Edited by mfp123

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some people get concerned over nothing. theyre just numbers. heres some other numbers for you.

japans debt to gdp ratio stands at 170%. 18% of tax revenue goes towards paying off public debt. this debt is only sustainable because interest rates are at 0.5%

they are so far in debt that if japan increased interest rates by 1% then interest payments would eat up 40% of government tax revenues.

japans debt expected to go near 200% of gdp next year.

japan saw a record 1.7% deflation today, meaning that the debt is increasing both nominally and in relative terms at the same time.

still im sure this will all blow over pretty quick.

theyve been in the doldrums for 2 decades due to massive debts and getting worse, but im sure we'll be fine.

Clearly there are no problems just worried doom mongers being negative. We need more positive posts like this.

You forgot to add about the late 90's govt decision to lend money to people with no possibility of paying it back.

People worry too much about debt and GDP ratios.

Think happy thoughts and all will be fine.

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Oh well.

Still, Phil Spencer says that London property has already bottomed. He must be privy to some arcane knowledge whilst we mere mortals merely look awestruck upon the toppling debt mountain.

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Guest DissipatedYouthIsValuable

Apparently Jordan was like seeing this bloke behind Peter Andre's back while they were married but she said she wasn't it was him with that blonde bimbo model and he's a bad dad and he says shes a bad mum and look here's some tits you pathetic proles.

katie-price_jordan.jpg

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