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" Unexpected" Rise In Public Borrowing

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http://uk.biz.yahoo.com/20082009/325/gover...wing-soars.html

Thursday August 20, 05:06 PM

Reuters

Government borrowing soars

By Sumeet Desai and Matt Falloon

LONDON (Reuters) - Government borrowing rose far beyond forecasts to a record for July as tax receipts crumbled in the recession, but stronger-than-expected retail sales suggest a recovery may be on the horizon.

July is usually one of the two key surplus months for the public purse but official data on Thursday showed public sector net borrowing of 8.016 billion pounds last month, confounding market forecasts for a deficit of just 500 million pounds.

Forecast 500m and it was over 8bn?

Good news for the pound and stocks?

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http://uk.biz.yahoo.com/20082009/325/gover...wing-soars.html

Thursday August 20, 05:06 PM

Reuters

Government borrowing soars

By Sumeet Desai and Matt Falloon

LONDON (Reuters) - Government borrowing rose far beyond forecasts to a record for July as tax receipts crumbled in the recession, but stronger-than-expected retail sales suggest a recovery may be on the horizon.

July is usually one of the two key surplus months for the public purse but official data on Thursday showed public sector net borrowing of 8.016 billion pounds last month, confounding market forecasts for a deficit of just 500 million pounds.

Forecast 500m and it was over 8bn?

Good news for the pound and stocks?

'but stronger-than-expected retail sales suggest a recovery may be on the horizon.'

What a recovery in increasing external deficit because of imports. KIN Blinding!

Edited by Abstra

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Yawn.

yes, i think it's called deficit spending.

Supposed to happen during a recession, infact should be happening all the time if there wasn't an obsession with totally unnecessary budget surplus.

Could it be the reason you haven't had many resposnes is that [:whispers:] it doesn't really matter.....

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Worst data ever recorded by a western govenment and only 6 posts on the news?

The pound did rise a few ticks and the SM didn't blink.

Shows you how many frogs are in the kettle. :o

I seem to remember when 800m instead of 500m would be bad news, now it's 8000m they can't even get the order of magnitude right.

Pound did drop from a pre-release spike of 1.6611 to 1.6450 and is bouncing around 1.65 now.

Edit - got the release time wrong, it went up about 50bps until the full realisation soaked through.

Edited by Kilham

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RB

Good eveing

The CB's will ensure that the £ don't crash...............Yet!

We hear more & more "Intel" of a possable "Bank Hoilday" in Sept or Oct.

Notice The "Swine Flu hype" thats about?

Mike

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That's good though because debt=wealth in Brown New World. We should be jumping for joy that the bankers will swell their coffers at the expense of tax payers once again. I for one will be giving a little extra in the form of a voluntary donation to HM Revenue and Customs - every little helps.

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At some stage we are going to simply run out of money. Not even QE can inject enough liquidity at ground level quick enough. We've had it.

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