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Uk Public Sector Could Have £4 Trillion Of Hidden Debts

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http://www.telegraph.co.uk/finance/economics/7888897/UK-public-sector-could-have-4-trillion-of-hidden-debts.html

The UK’s public sector debt could be nearly £4 trillion higher than headline figures suggest, according to new research that highlights the scale of the economic challenges facing the Government.

The Office for National Statistics (ONS) released a study revealing that the public purse could be faced with £4.84 trillion of liabilities compared with the current public sector net debt figure of £903bn.

David Hobbs of the ONS described the public sector balance sheet as an “open-ended concept” as he outlined liabilities that are considered to be “off-balance sheet” or not covered in official debt measures.

The Government’s stakes in RBS and Lloyds Banking Group could add another £1 trillion to £1.5 trillion, the ONS said, the largest potential liability.

Meanwhile, unfunded public service pension obligations could account for a further £770bn to £1.2 trillion, while unfunded state pension schemes amounted to between £1.17 trillion and £1.35 trillion.

“For transparency, it is important for a broad range of information on public sector liabilities, obligations and contingencies to be made readily available, whether or not included within balance sheets,” Mr Hobbs said.

The report also highlighted a potential £200bn of off-balance sheet obligations from private finance initiative schemes, and £40bn in nuclear decommissioning liabilities.

Hr Hobbs also set out a further £500bn miscellaneous grouping of guarantees and contingent obligations, some of which “are more likely to materialise than others”.

The total in liabilities and obligations came to £3.68 trillion to £4.84 trillion.

The report comes just a day after a study by the Institute of Chartered Accountants in England and Wales (ICAEW) and the Centre for Economics and Business Research (CEBR) revealed that there could be a further £1.13 trillion of liabilities above current debt estimates.

Pick a number any number and guess what it is the UK actual liabilities are. No figure is too ridiculous to suggest...

Yesterday is was just over £1tr hidden and now we have an even bigger figure.

It's the open ended recovery.

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The total in liabilities and obligations came to £3.68 trillion to £4.84 trillion.

Last sentence but one. I wonder if the error is deliberate? - Or was someone watching the office debt clock as they typed?

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http://www.telegraph.co.uk/finance/economics/7888897/UK-public-sector-could-have-4-trillion-of-hidden-debts.html

Pick a number any number and guess what it is the UK actual liabilities are. No figure is too ridiculous to suggest...

Yesterday is was just over £1tr hidden and now we have an even bigger figure.

It's the open ended recovery.

I suggested a couple of years ago that a rough estimate of the damage could be worked out by looking at the ONS estimate of the value of UK Plc. Somewhere around 8.4TR IIRC. They said 40% was related to housing or about 3TR. As most of that was debt based and directly related to what is now known as the banking crisis it is easy to see that Brown had to cover it up not with billions but trillions.

All of this will, no doubt, fuel a fresh rally in the FTSE and underpin Sterling as a "safe" haven.

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http://www.telegraph.co.uk/finance/economics/7888897/UK-public-sector-could-have-4-trillion-of-hidden-debts.html

Pick a number any number and guess what it is the UK actual liabilities are. No figure is too ridiculous to suggest...

Yesterday is was just over £1tr hidden and now we have an even bigger figure.

It's the open ended recovery.

So from 1trillion its gone to 4 trillions!!!, in matter of few days

we're not talking about few mil here & there it was 3 trillions off the mark!!!

looks like a black hole of debt developing which is going to swallow everything...

can someone explain how a recovery is possible here & in the US in a forseeable future.

only solution left, a system reset...

massive war... new currency

but can't see it working either coz our enemy is ready & its bigger & stronger!

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Since when was it 'hidden'?

This is exactly the point I'm making on the other thread.

This debt has been 'hidden in plain sight' for the last decade! How many posts have there been on HPC - and in the mainstream media - about PFI and public sector pensions?

Are most posters on this site really so stupid that until the monkey bangs the drum, they don't pay any attention to these things? :o:blink:

Edited by redalert

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http://www.telegraph.co.uk/finance/economics/7888897/UK-public-sector-could-have-4-trillion-of-hidden-debts.html

Pick a number any number and guess what it is the UK actual liabilities are. No figure is too ridiculous to suggest...

Yesterday is was just over £1tr hidden and now we have an even bigger figure.

It's the open ended recovery.

The only conclusion you can draw from these figures is that the financial system has broken down, and is dragging the remnants of the real economy (ie, the one that produces and distributes goods and services, rather than manipulating monetary units) with it.

There is no light at the end of the tunnel for most people short of fundamental monetary reform - see The Bank of England (Creation of Currency) Bill 2010, at http://www.bankofenglandact.co.uk/.

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Are most posters on this site really so stupid that until the monkey bangs the drum, they don't pay any attention to these things? :o:blink:

It's pretty simple really.

People assume there will be some magic solution the government will come up with. Theres a big reset button the government can push and everyone will stop asking for their money.

The best one I've heard is "oh we will just default", like all the problems will go away.

The implication that the debts will have to actually be paid is so horrific that people simply can't accept that it must happen.

"Bbbbuut but but yeah but no but yeah but no but.... we can't afford that so we can't pay it so we wont pay so someone else will have to pay if for us cos otherwise we wont be able to afford a new car and my mate Tracey says we can just default and all the old people will agree to live in poverty." :unsure:

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We should default immediately - it will trash the eurozone monetary system but what the hell, we have nukes and can tell them to p*** o**.

Thing about defaults is that only the first one to do it will benefit from it, we should get in there first.

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We should default immediately - it will trash the eurozone monetary system but what the hell, we have nukes and can tell them to p*** o**.

The thing is, we are not the only ones in this position... practically every other developed country has been shovelling things off-balance sheet for years.

What's worse, most major companies have been doing the same...

:ph34r:

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The thing is, we are not the only ones in this position... practically every other developed country has been shovelling things off-balance sheet for years.

What's worse, most major companies have been doing the same...

:ph34r:

Enron accounting the world over.

Genius.

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Enron accounting the world over.

Genius.

We've gone from global economy to global enronomy.

Ever see the Jim Carrey movie "Fun With Dick and Jane"?

Edited by Dave Spart

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Enron accounting the world over.

Genius.

Sometime in the 80s, accounting completed it's transition from a process that attempted to measure the financial state of an organisation to a process that attempts to hide the true financial state of an organisation.

We will enjoy the fruits of that labour over the next 20 years.

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  • 261 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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