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Realistbear

Government Borrowing Hits Record And It Was "unexpected"

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http://uk.finance.yahoo.com/news/instant-view-june-public-borrowing-higher-than-expected-reuters_molt-d7736c2c52d5.html?x=0

Instant View - June public borrowing higher than expected
10:08, Tuesday 20 July 2010
LONDON (
Reuters
) - Public sector net cash requirement rose unexpectedly on a year ago to its highest level since records began in April 1984, the Office for National Statistics said on Tuesday.

I suppose skeletons rattling out of the cupboard could be said to be unexpected. But I really do not think so after they unexpectedly discovered our national debt was not 900bn but 4 trillion.

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http://uk.finance.yahoo.com/news/instant-view-june-public-borrowing-higher-than-expected-reuters_molt-d7736c2c52d5.html?x=0

Instant View - June public borrowing higher than expected
10:08, Tuesday 20 July 2010
LONDON (
Reuters
) - Public sector net cash requirement rose unexpectedly on a year ago to its highest level since records began in April 1984, the Office for National Statistics said on Tuesday.

I suppose skeletons rattling out of the cupboard could be said to be unexpected. But I really do not think so after they unexpectedly discovered our national debt was not 900bn but 4 trillion.

Well done Gordon Brown. The man was a financial genius.

I often think genius sounds a bit like Genuine-Ass. :lol:

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You couldn't make this stuff up :unsure:

The country is burning through £3bn a week more that it is taking while the ConDems take a "Mañana mañana" approach to the cuts, what do people expect?

I see Sterling is taking the strain nicely :rolleyes:

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You couldn't make this stuff up :unsure:

The country is burning through £3bn a week more that it is taking while the ConDems take a "Mañana mañana" approach to the cuts, what do people expect?

I see Sterling is taking the strain nicely :rolleyes:

The Balls creature is leading a schools revolt against any cuts in education. Its hands of the NHS. No cuts for the bankster bonuses. What else is there?

FOREX shows sterling going down fast vs. Euro and $:

http://uk.finance.yahoo.com/news/pound-slips-on-wider-than-expected-uk-budget-deficit-tele-dcbe158f5c7b.html?x=0

Public sector net borrowing hit £14.5bn in June, above the £13bn consensus among economists. If the trend continues, the Government will miss its deficit reduction target, raising fresh questions about the countrys ability to control its massive debt burden.

Sterling immediately slipped 0.6 cents against the dollar on the news, but was little changed on the day at $1.5220.

1 GBP =Inverse:

$ = 1.51962

E = 1.17500

Edited by Realistbear

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Public sector net cash requirement rose unexpectedly on a year ago to its highest level since records began in April 1984, the Office for National Statistics said on Tuesday.

Should we expect National Savings certificates to be reintroduced tomorrow then?

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FOREX shows sterling going down fast vs. Euro and $:

My nickname for Sterling has been Knockout for quite a while, the reason is simply, all it knows how to do is take a fall :P

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Let us remember June started less than four weeks after the election. Hardly feasible to cut already committed spending in that time frame.

This from FT Alphaville:

http://ftalphaville.ft.com/blog/2010/07/20/291361/uk-plc-feels-the-pain-of-osbornes-axe/' rel="external nofollow">
George Osborne’s austerity measures are beginning to bite; and UK Plc is feeling the pain.
On Tuesday morning shares in the confusingly named Cable & Wireless Worldwide fell 12p, or 14 per cent, to 71.5p after the telecoms company issued a profits warning, blaming a sharp slowdown in UK public sector spending brought in by the newly-elected chancellor’s emergency budget.

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How we used to laugh at countries like Greece and Hungary, 2nd raters who couldnt take their medicine and balance their books.

No problems here in the UK, growth, and wage increases in the private sector will sort out over half the 'Brown' deficit.

Oh, whats this, a larger than expected deficit? Hmmm, what if, what if, what if (not a typo, said three times for maximum poetic affect, though I have kind of blown it with my explanation in brackets) we have low or no growth, maybe even negative growth, and falling private sector wages?

Oh look. Private sector wages are under massive pressure from Global Wage Arbitrage. Growth generally is under pressure from deflation and now Sovereign state Austerity. Net result, growing Deficit, under the Tories.

From what I have seen of the 'Nasty' party, they dont really have a clue. If we are going to avoid a state default, then we need to cut the things back that we would have to cut back if we have a state default. Things really are that serious.

Some jobs in the Public Sector need to go, but not as many as people think. What is needed are Public Sector pay cuts, reduce wages, not numbers. Massively cut public sector pensions. Cut State Pensions by 10 percent too, and raise the retirement age to 70. Change the formula for calculating pensions, so that the amount we spend on state pensions, as a proportion of national income, is fixed.

And cut the number of people who go to University, get them into work.

Slash benefits, and change housing benefit so that it pays the bottom 10% median rent, in the lowest rent area of the UK.

You think I am joking? I am not. Either we get serious on cutting state expenditure back, or we will have a default. Lets look to Hungary and Ireland and Greece to see how that works out.

Edited by leicestersq

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How we used to laugh at countries like Greece and Hungary, 2nd raters who couldnt take their medicine and balance their books.

No problems here in the UK, growth, and wage increases in the private sector will sort out over half the 'Brown' deficit.

Oh, whats this, a larger than expected deficit? Hmmm, what if, what if, what if (not a typo, said three times for maximum poetic affect, though I have kind of blown it with my explanation in brackets) we have low or no growth, maybe even negative growth, and falling private sector wages?

Oh look. Private sector wages are under massive pressure from Global Wage Arbitrage. Growth generally is under pressure from deflation and now Sovereign state Austerity. Net result, growing Deficit, under the Tories.

From what I have seen of they 'Nasty' party, they dont really have a clue. If we are going to avoid a state default, then we need to cut the things back that we would have to cut back if we have a state default. Things really are that serious.

Some jobs in the Public Sector need to go, but not as many as people think. What is needed are Public Sector pay cuts, reduce wages, not numbers. Massively cut public sector pensions. Cut State Pensions by 10 percent too, and raise the retirement age to 70. Change the formula for calculating pensions, so that the amount we spend on state pensions, as a proportion of national income, is fixed.

And cut the number of people who go to University, get them into work.

Slash benefits, and change housing benefit so that it pays the bottom 10% median rent, in the lowest rent area of the UK.

You think I am joking? I am not. Either we get serious on cutting state expenditure back, or we will have a default. Lets look to Hungary and Ireland and Greece to see how that works out.

I like your way of thinking about the problem.

They only way to prevent having to call in the IMF is to do to-day what the IMF would tell you to do if you had to call them in to-morrow.

Unfortunately, there are still too many people who think that the debt problem is going to be solved by taking on more debt.

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How we used to laugh at countries like Greece and Hungary, 2nd raters who couldnt take their medicine and balance their books.

No problems here in the UK, growth, and wage increases in the private sector will sort out over half the 'Brown' deficit.

Oh, whats this, a larger than expected deficit? Hmmm, what if, what if, what if (not a typo, said three times for maximum poetic affect, though I have kind of blown it with my explanation in brackets) we have low or no growth, maybe even negative growth, and falling private sector wages?

Oh look. Private sector wages are under massive pressure from Global Wage Arbitrage. Growth generally is under pressure from deflation and now Sovereign state Austerity. Net result, growing Deficit, under the Tories.

From what I have seen of they 'Nasty' party, they dont really have a clue. If we are going to avoid a state default, then we need to cut the things back that we would have to cut back if we have a state default. Things really are that serious.

Some jobs in the Public Sector need to go, but not as many as people think. What is needed are Public Sector pay cuts, reduce wages, not numbers. Massively cut public sector pensions. Cut State Pensions by 10 percent too, and raise the retirement age to 70. Change the formula for calculating pensions, so that the amount we spend on state pensions, as a proportion of national income, is fixed.

And cut the number of people who go to University, get them into work.

Slash benefits, and change housing benefit so that it pays the bottom 10% median rent, in the lowest rent area of the UK.

You think I am joking? I am not. Either we get serious on cutting state expenditure back, or we will have a default. Lets look to Hungary and Ireland and Greece to see how that works out.

Nice plan, however there's currently little or no accessable jobs out there that make working worthwhile. We don't create any wealth any more, we just pass around what gets cunjured out of thin air. So I very much doubt the private sector is in any kind of position to take up the slack.

As for the public sector, anyone looking to retire should do so whilst the option is still available to them, and those left behind (wherever possible) should be put on a reduced working week.

A massive deflationary correction could sort this out, but would come with bagage of it's own. Brown was a fool to prevent a HPC, as low living and shelter costs are whats required to get the UK moving again in the long term. If this also means the average wage falling back to sub £20k then so be it.

Edited by PopGun

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Meanwhile, Labour ex-ministers craw "I told you so" because Ireland has been downgraded after cuts ...

Grauniad article

But the former chancellor Alistair Darling said Ireland's experience was a salutary lesson in the consequences of cutting public spending too quickly.

Responding to the news that Moody's had lowered its credit rating for Ireland from Aa1 to Aa2, Darling said: "If you knock out the capacity to grow, you knock out the capacity to repay your debts. You will never repay debt unless you get growth. By choosing to go further and faster, you don't get growth, you stall the recovery, you bump along the bottom at best and it takes longer to repay your debts."

Yeah that's right Darling, all would have been well if only those thick Irish had kept on borrowing and spending like drunken sailors instead of actually trying to reign in their overspend, eh? Clearly all you need to do is borrow and then dump the money into the economy creating GDP that is completely sustainable and with no longer term consequences for all that debt. :rolleyes:

Or perhaps Ireland got downgraded because the economy was royally screwed with huge levels of debt after the collapse of a monster housing bubble and there was no magic bullet solution that would fix it in a hurry or even prevent the consequences. Something others might learn from. With a bit of luck Ireland might avoid total meltdown but if the 'borrow and spend' mentality continues in the UK, expect to hit a wall very soon.

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I like your way of thinking about the problem.

They only way to prevent having to call in the IMF is to do to-day what the IMF would tell you to do if you had to call them in to-morrow.

Unfortunately, there are still too many people who think that the debt problem is going to be solved by taking on more debt.

Totally agree. I was hoping they had the balls to call in the IMF for a full audit, then simply follow the advise of an independent and well respected agency whilst blaming the hardship on the previous lot. Sadly they seem to have gone it alone and come up with their own soft and fluffy measures.

£6bn of initial cuts while we were still burning through £3bn is week still makes me chuckle. In the time they decided what to cut the money had already gone up in smoke.

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Meanwhile, Labour ex-ministers craw "I told you so" because Ireland has been downgraded after cuts ...

Grauniad article

Yeah that's right Darling, all would have been well if only those thick Irish had kept on borrowing and spending like drunken sailors instead of actually trying to reign in their overspend, eh?

Drunken sailors spend their own money, not other people's!

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  • 142 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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