Public Borrowing At Record High For August

[exiges]

http://uk.reuters.com/article/idUKTRE68K0YS20100921

Britain's public sector net borrowing last month posted a record high for the month of August as interest payments on gilts shot up because of higher inflation, the Office for National Statistics said on Tuesday.

Receipts, however, are still rising and the figures are likely to suggest the government remains on track to maintain its full year forecast.

The public sector net borrowing measure came in at 15.302 billion pounds, a record high for the month of August. Analysts had forecast a PSNB of 12.51 billion.

The government's preferred measure on which fiscal forecasts are based, PSNB excluding financial sector interventions, came in at 15.910 billion pounds.

The ONS said the deterioration in the public finances was mainly due to higher interest payments on gilts, as a result of the rise in the retail price index. Interest payments were 3.8 bln stg in Aug vs 1.3 bln stg a year ago.

Receipts from the bank payrolls tax, which accrued to the April figures were deemed to be 1 billion pounds higher at 3.5 billion pounds.

Nice one Merv, you dolt.

Edited September 21, 2010 by exiges

[exiges]

*mini bump* to put the thread above the delete one

[Game_Over]

Don't worry everything is going according to plan.

The main problem is Deflation - apparently !!!!!!!

That's what the 'experts' here keep telling me anyway

[Bloo Loo]

Its all over doomberg.

I expect the £ to rise fast as interest rates my need to go up to support.

[Bloo Loo]

Don't worry everything is going according to plan.

The main problem is Deflation - apparently !!!!!!!

That's what the 'experts' here keep telling me anyway

what do you think government borrowing is combating? its supplying inflation to counter deflaltion( delveraging) so the theoretical result is zero. A topic expounded by MDM here two years ago.

note also Government is calling for banks to issue more credit...to keep the economy growing. The KNOW which way the wind is blowing..

[interestrateripoff]

At least debt expansion is recovering...

So tax revenues are doing well then, thank god we have a recovery.

[Realistbear]

Its all over doomberg.

I expect the £ to rise fast as interest rates my need to go up to support.

1 GBP =Inverse: 1.55303

Down over 100bp vs the $.

I am not so sure that this is good news for sterling as it may suggest its not contained and the 5TR debt will impact us sooner or later. What is odd though is that th Pound did sink as bad news normally has the reverse effect in this current economic climate.

[leicestersq]

These figures are a disaster.

Global wage arbitrage is driving down wages in the private sector. Benefits become worth more relative to private sector wages, encouraging more to join the ranks on benefits if they can wangle themselves a deal and a house.

If interest rates rise much from here, the burden on the taxpayer gets worse, compounding the problem, driving more to the arms of our benefits system.

The only way to avoid the abyss is some shock treatment. You cant mess around cutting 6% off of budgets like a lily livered leftie at a time like this. You gotta do what you gotta do. Benefits, particularly PENSION benefits, need to be cut. That may not go down well, but something needs to be done.

SMI needs to hit the bin, and we gotta stop letting people blackmail us with their children. No extra benefits for kids, and an end to publicly provided housing, let the private sector deal with it.

Oh, and the Tories promised to increase those pension benefits. They had better think again.

Dont want to think about Dave Cameron? Well watch Ireland instead.

[Bloo Loo]

Of course in 'real terms' our debt cost must have gone down.

Only index linked gilts went up in servicing terms - and these were paid out in devalued pounds.

Whilst all other gilts must have become cheaper to service in real terms.

Yippee!!!

in real terms, I assume you mean as measured v GDP.

sadly, GDP is a product of a formula that INCLUDES the borrowing...the more they do, the better the GDP.

course, the tax generating part, the wealth creation is going down all the time....so, really, as a cost on the wealth generation, the debt is much more.

Interest rates arent LOW because times are good.

[Bloo Loo]

Are following me?

I was being supercilious. The figures are an absolute disaster. I don't know how we're going pay our way in the world. Oh well - Clapham anyone?

rubbish, they are estimates...they'll be fine in a couple of revisions.

[Injin]

These figures are a disaster.

Global wage arbitrage is driving down wages in the private sector. Benefits become worth more relative to private sector wages, encouraging more to join the ranks on benefits if they can wangle themselves a deal and a house.

If interest rates rise much from here, the burden on the taxpayer gets worse, compounding the problem, driving more to the arms of our benefits system.

The only way to avoid the abyss is some shock treatment. You cant mess around cutting 6% off of budgets like a lily livered leftie at a time like this. You gotta do what you gotta do. Benefits, particularly PENSION benefits, need to be cut. That may not go down well, but something needs to be done.

SMI needs to hit the bin, and we gotta stop letting people blackmail us with their children. No extra benefits for kids, and an end to publicly provided housing, let the private sector deal with it.

Oh, and the Tories promised to increase those pension benefits. They had better think again.

Dont want to think about Dave Cameron? Well watch Ireland instead.

Have to cut rents, taxes and reghulation.

There is no chance and it's going to collapse. State failures, all accross the west.

Grab what you can, because soon it won't be there.

[R K]

These figures are a disaster.

Global wage arbitrage is driving down wages in the private sector. Benefits become worth more relative to private sector wages, encouraging more to join the ranks on benefits if they can wangle themselves a deal and a house.

If interest rates rise much from here, the burden on the taxpayer gets worse, compounding the problem, driving more to the arms of our benefits system.

The only way to avoid the abyss is some shock treatment. You cant mess around cutting 6% off of budgets like a lily livered leftie at a time like this. You gotta do what you gotta do. Benefits, particularly PENSION benefits, need to be cut. That may not go down well, but something needs to be done.

SMI needs to hit the bin, and we gotta stop letting people blackmail us with their children. No extra benefits for kids, and an end to publicly provided housing, let the private sector deal with it.

Oh, and the Tories promised to increase those pension benefits. They had better think again.

Dont want to think about Dave Cameron? Well watch Ireland instead.

The problem is also the solution.

Since it is global wage arbitrage and the concomittant imported capital that's the problem, rates won't rise whilst this obtains.

Rising rates (eventually) will be a sign of a reversal in this process and thus be a healthy sign, accompanied by a reduction in borrowings, improving employments higher growth and stronger sterlings.

The process ought to be accelerated by the use of import tariffs and other means to aggressively force China to change course (It looks like we're going to have to wait for the US to get it's ar5e in gear and piggy back on them for this - but it's coming thankfully).

I suspect we're close to the low point now. (The PS 'job cuts' will end up largely being tax rises and contract cuts obviously).

[council dweller]

In August I paid some tax (P-T) but in September I'll get a refund due to an overtime ban.

Hopefully it's just me!

So, 15 billion in what is normally a goodish month(?) What does that point to for the full year? Could it be.....drum roll....200 bn plus!!!!!

QE is the answer.

[leicestersq]

The problem is also the solution.

Since it is global wage arbitrage and the concomittant imported capital that's the problem, rates won't rise whilst this obtains.

Rising rates (eventually) will be a sign of a reversal in this process and thus be a healthy sign, accompanied by a reduction in borrowings, improving employments higher growth and stronger sterlings.

The process ought to be accelerated by the use of import tariffs and other means to aggressively force China to change course (It looks like we're going to have to wait for the US to get it's ar5e in gear and piggy back on them for this - but it's coming thankfully).

I suspect we're close to the low point now. (The PS 'job cuts' will end up largely being tax rises and contract cuts obviously).

Interest rates will rise if lenders dont think that they will get the value of their money back in real terms.

So many liabilities are now index linked too, that they can never be paid for unless we raise tax to ridiculous levels. I bet they will try to do that, though our young, indeed all our taxpayers have suffered enough I think.

[Injin]

Interest rates will rise if lenders dont think that they will get the value of their money back in real terms.

That can't be true or inflation would be impossible.

So many liabilities are now index linked too, that they can never be paid for unless we raise tax to ridiculous levels. I bet they will try to do that, though our young, indeed all our taxpayers have suffered enough I think.

Taxes up, services down, bankers bills paid for.

Rinse and repeat until collapse.

[General Congreve]

"YESSSSS, MY PRECIOUSSSSSS." (Admires golden ring).

[Giraffe]

So what is 15 billion divided over the population? - I'm lost with all those zeros - can someone work it out? I like to know what has been borrowed on my behalf.

[MrFlibble]

So what is 15 billion divided over the population? - I'm lost with all those zeros - can someone work it out? I like to know what has been borrowed on my behalf.

Around £225 each, assuming a billion is a thousand million, which I think it is?

[leicestersq]

Around £225 each, assuming a billion is a thousand million, which I think it is?

Divide it by the numbers of those in full time work for a much scarier figure, then multiply by 12 for the rate for the year.

I just did that, and boy that is scary.

[council dweller]

So what is 15 billion divided over the population? - I'm lost with all those zeros - can someone work it out? I like to know what has been borrowed on my behalf.

250 quid.

[Bloo Loo]

250 quid.

thats Extra of course, to the current repayments. £1000 per family.

[council dweller]

thats Extra of course, to the current repayments. £1000 per family.

...is that hardworking families?

[General Congreve]

Around £225 each, assuming a billion is a thousand million, which I think it is?

That's each. Strip out all the benefit claimants, children,OAPs, disabled, tax-dodgers and what's left? A third of the population paying tax? Let's be generous and say it's about half. So, did you make a spare £450 plus some extra for interest in August and put it aside so that the government can happily tax it at some point in the future to pay it's debts. Didn't think so. And that's just August, a traditionally low borrowing month.

Apparently the combined public, private and corporate debt load per individual (working I hope) in the UK is £188,000. As if that money can ever be repaid. The only option is slash and burn in public services combined with high interest rates to save the pound, but that will collapse the economy, crush tax revenue and cause a depression along with mass social unrest and so will probably screw the pound anyway or printy, printy that will eventually lead to a hyperinflationary depression.

The same goes for the US and Europe, the west is broke and painted into a corner which ever way you approach the problem. Protect your wealth and buy gold/silver, it's the last horse in town.

[council dweller]

Btw, 14.8 for September 2009.

[Constable]

* We owe £15,208 for every man, woman and child

* That's more than £32,920 for every person in employment

* Every household will pay £1,890 this year, just to cover the interest

UK Debt Bombshell

Edited September 21, 2010 by Constable