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"they Have Decided To Clear The Debt To Zero By 2015"

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Two chaps reviewing the papers at about 11:20pm talking about spending cuts.

The Talksport "political commentator" says shrugging his shoulders as if he cannot think why they are doing it:

"They have decided to clear the debt to zero by 2015 so we are back to zero"

Only on the BBC! (or maybe Talksport as well)

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Two chaps reviewing the papers at about 11:20pm talking about spending cuts.

The Talksport "political commentator" says shrugging his shoulders as if he cannot think why they are doing it:

"They have decided to clear the debt to zero by 2015 so we are back to zero"

Only on the BBC! (or maybe Talksport as well)

...when you are dealing with this PRAVDA organisation who do not have to generate their income...just how to spend it like a Labour Government ....then understanding clearance of debt and other such survival planning does not occur in their fake little world....time to get rid...... :rolleyes:

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Two chaps reviewing the papers at about 11:20pm talking about spending cuts.

The Talksport "political commentator" says shrugging his shoulders as if he cannot think why they are doing it:

"They have decided to clear the debt to zero by 2015 so we are back to zero"

Only on the BBC! (or maybe Talksport as well)

They have decided to clear the deficit (the difference between what we have coming in and what we have going out) by 2015

The debt , I imagine, would take several decades to clear.

Edited by tallguy

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They have decided to clear the deficit (the difference between what we have coming in and what we have going out) by 2015

The debt , I imagine, would take several decades to clear.

If you know who the Talksport political commentator is I think you had better try explain that to him. Be sure to take a hammer and chisel with you, I don't think it will be easy.

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Oh, I think they do. They just know that most of us don't.

...you give too much credence to the BBC lefty machine....most of the last Government didn't know the difference and broadcasts often confused the two ....there have been threads on this lack of broadcasting awareness on here in the past.... :rolleyes:

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This page might help explain it to him:

In the financial year 2009/10 the UK recorded general government net borrowing of £159.8 billion, which was equivalent to 11.4 per cent of gross domestic product (GDP).

At the end of March 2010 general government debt was £1000.4 billion, equivalent to 71.3 per cent of GDP.

The Maastricht Treaty's Excessive Deficit Procedure sets deficit and debt reference levels of 3 per cent and 60 per cent respectively for all EU countries

http://www.statistics.gov.uk/cci/nugget.asp?id=277

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This page might help explain it to him:

...the only problem with the Debt figure is with public sector pensions and UK Pensioner pensions etc added there are a few trillion to be added to the the one trillion the Treasury reports..... :rolleyes:

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this is a mystery to the sports hosts....there are no medals in this race...just losers.

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Few questions;

  1. To whom exactly do we owe this money?
  2. Is the 200 billion of QE money within the 1trillion figure?
  3. How much of it is balanced by government ownership of the banks?
Edited by Oh Dear

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Few questions;

  1. To whom exactly do we owe this money?

  2. Is the 200 billion of QE money within the 1trillion figure?

  3. How much of it is balanced by government ownership of the banks?

Good questions.. most people do not really understand the nature of a national debt.. they usually think of it as a personal debt to an individual. But the reality is it is far different.

1. Mainly Brits with term deposits, pension funds, bonds fund and similiar. Money comes from Brits in taxes, and goes to Brits in interest payments.

2. Yes, they bought I believe £175 billion of government bonds last year. The average interest on our bonds is about 3.5%. So the HM Treasury pays £6 billion to the BoE.. and the BoE makes a profit of £6 billion. Which sometimes it gives in a dividend to HM Treasury.

National debt is more of an accounting entry, it expands rapidly in a private sector deleveraging, and shrinks relative to GDP as private debt expands rapidly.

3. That is hard to say, it would depend on how much each bank holds of Gilts. The government ownership is now very significant. Basically Britain has 4 super banks.. Lloyds group, RBS, HSBC and Barclays. That is 95% of our banking sector. The government owns 84% of RBS. And 43% of Lloyds.

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Money comes from Brits in taxes, and goes to Brits in interest payments.

That's not entirely true. When the debt only increases, it never really goes back to brits unless brits stop buying government bonds, in which case all hell breaks loose because the capital has to be repaid. Since a population's opinion of the riskiness of debt changes like a herd, all the capital must be repaid at once. This explains the severity of the situation.

Also, money comes from all the brits in taxes, some gets creamed off and given to the government's best friends then the rest gets paid to a few of the brits as interest. The system suffers the tragedy of the commons but with the awful ponzi twist above - everybody must buy many bonds or lose out in the commons problem so the pyramid grows to the biggest any pyramid can be before it finally collapses in one go. Your decision on whether to buy depends solely on your estimate of the likelihood of default during the timescale you'll want the money back. The buyers then force the system to collapse as soon as it possibly can. Which turns out to be the time it takes for a population to forget what happened last time - ie one lifetime (which is why the politicians are talking about this being the worst collapse in "living memory").

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this is a mystery to the sports hosts....there are no medals in this race...just losers.

It shouldn't be too much of a mystery don't the winners get a gold medal?

Oh no sorry, the winners are the ones who bought their own gold and silver medals to the final.

My mistake.

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Strange first post but why is all the talk about tackling the deficit and not debt? When does the debt need to be repaid or won't it!?

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Strange first post but why is all the talk about tackling the deficit and not debt? When does the debt need to be repaid or won't it!?

The debt won't be repaid it will be replaced with new money. ;)

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...when you are dealing with this PRAVDA organisation who do not have to generate their income...just how to spend it

To be fair, their commercial arm, BBC Worldwide, is at least a bit more entrepreneurial.

Private Eye had a story about them asking for a new Dalek design for the fifth series of Doctor Who (link), so that they could fleece the nation's 7 year olds for yet another set of Delek merchandise.

Now that's capitalism.

250px-Sunmakers_title.jpg

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Here's a good example of the difference between the debt, and the deficit. It squeaked into the BBC, and was met with stunned silence by the panel and the audience.

Lord Forsyth I believe. Watch from 6 minutes through to the end. Brilliant stuff!

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They have decided to clear the deficit (the difference between what we have coming in and what we have going out) by 2015

The debt , I imagine, would take several decades to clear.

The confusion between deficit and total debt seems to be exceedingly common.

How can people be allowed to vote if they do not understand this distinction?

How can the state the UK is in be turned around if vaste swathes of the voting public do not understand just how deep in the doo doo the UK really is?

No, a bit of austerity will not have the UK clear of its debt by 2015 you radio presenter morons; it will stop us getting in a bigger pickle than we are already in. With this lack of understanding of basic financial terminology, no wonder so many people take out ridiculous mortgages...

It is this sort of thing that makes me doubt the benefit or validity of universal sufferage. If people don't understand the basics of the problem, why the heck should they think themselves able to voice an opinion by voting? In the QT video above, people are arguing that we should overspend by over £2000 per man woman and child every year to keep "growth." Do none of them have any imagination, at all? Do they not understand how serious this is?

I wouldn't mind so much if I didn't have to be made to suffer for their fecklessness, but the fact is the mindless majority enforce the results of their stupidity on everyone.

Edited by Tiger Woods?

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They have decided to clear the deficit (the difference between what we have coming in and what we have going out) by 2015

The debt , I imagine, would take several decades to clear.

What is the debt as a percentage of GDP projected to be at the end of 2010? And how would that comapre to Germany, France and Belgium? Go find out. And surprise yourself.

Disclaimer: needsleep is not saying we don't need to reduce the deficit. I agree that we do.

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What is the debt as a percentage of GDP projected to be at the end of 2010? And how would that comapre to Germany, France and Belgium? Go find out. And surprise yourself.

Disclaimer: needsleep is not saying we don't need to reduce the deficit. I agree that we do.

Cant you just post a link or give us the info instead of trying to get us into playing google games?

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What is the debt as a percentage of GDP projected to be at the end of 2010? And how would that comapre to Germany, France and Belgium? Go find out. And surprise yourself.

Disclaimer: needsleep is not saying we don't need to reduce the deficit. I agree that we do.

But our deficit means that we will soon overtake them. Look at 2015 and the picture is rather different.

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...the only problem with the Debt figure is with public sector pensions and UK Pensioner pensions etc added there are a few trillion to be added to the the one trillion the Treasury reports..... :rolleyes:

Oh dear. have people really fallen for that crap.

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  • 152 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% +
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      • Even
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      • up 5%



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