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Tired of Waiting

Osborne: " We Were On The Brink Of Bankruptcy "

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This morning, on the Andrew Marr show

"(...)

we were on the brink of bankruptcy

(...)

I mean when we were sitting here before the election actually people had a real question mark over Britain's ability to pay its way in the world, and our interest rates were similar to those that you could get in Portugal, in Spain and other countries that people were questioning. Today our interest rates are a full one percentage point lower than that time of the election, and that is because people have more confidence in us. They see this new coalition government has come together, produced a credible plan; and there is a stimulus, a monetary stimulus, lower interest rates, that every family, every business in this country can call upon. And I'm not prepared to go back into the place we were five months ago on the brink of bankruptcy, on the edge of an economic abyss, with people around the world questioning whether Britain could pay its way.

(...)

we have the largest budget deficit in the developed world. So when I go to the IMF - as I did last weekend - when I go to the G20 in Korea, which I'll do immediately after the Spending Review, I sit round the table with all those other countries representing the country with the largest budget deficit. I didn't create this situation; the Labour predecessors did that.

(...)

it's deeply unfair that the country has been left in this situation with this enormous budget deficit"

http://news.bbc.co.uk/1/hi/programmes/andrew_marr_show/9099775.stm

http://news.bbc.co.uk/1/hi/programmes/andrew_marr_show/default.stm

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They see this new coalition government has come together, produced a credible plan; and there is a stimulus, a monetary stimulus, lower interest rates, that every family.......... in this country can call upon.

Lower interest rates that every family can call upon but only on their savings interest rates Coalition plonker.

...we have the largest budget deficit in the developed world. So when I go to the IMF - as I did last weekend - ....

The UK is so begging bowl these days.

Edited by billybong

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I'm not sure why he's congratulating himself for a job well done, as a Chancellor he's got nowhere to go. He can't raise interest rates, can't raise (or lower) taxes and can't cut the debt in any meaningful way, all he's left with is a bit of tinkering and some spin.

The coalition aren't equipped with the ideolgocial tools necessary to make a significant impact on the economy, the course has been set and they're stuck on autopilot.

Edited by Chef

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Lower interest rates that every family can call upon but only on their savings interest rates Coalition plonker.

(...)

The gov. has no option. To avoid bankrupting most UK businesses, households and themselves (gov.) they have to (try to) keep interest rates as low as possible for as long as possible - until inflation forces them to raise them, and then the sh!t'll hit the fan.

No choice really.

.

Edited by Tired of Waiting

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They have not done anything yet. The defecit needs to be turned in to a surplus and the debt paid back. Not easy. At least they are going to attempt to fix the problem.

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I'm not sure why he's congratulating himself for a job well done, as a Chancellor he's got nowhere to go. He can't raise interest rates, can't raise (or lower) taxes and can't cut the debt in any meaningful way, all he's left with is a bit of tinkering and some spin.

The coalition aren't equipped with the ideolgocial tools necessary to make a significant impact on the economy, the course has been set and they're stuck on autopilot.

:lol:

Good post.

They really don't have many options.

Even Labour would have to do basically the same, if they had won the election.

BTW, in 5 years our debt to GDP will be around 100%. This will mean: no more borrowing, whoever wins it.

That is a way to put a cap gov. borrowing: max it out. :)

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When Thatcher came to power in 1979 she set about demolishing the public sector using the pretext that those who ran the various departments claimed to do so in the public interest while actually serving themselves. There was undoubtedly a great deal of largesse going on. The public sector was shrunk by way of out-sourcing and this was accompanied by bitter trades union action. Its because Thatcher came to be seen as cold-hearted individual that Cameron is busy promoting his Big Society. He is keen not to be seen the same light.

Unquestionably Brown was catastrophically misguided in his public sector spending, however you have to wonder how much of the cuts due to be announced on October 20th are driven by economic necessity and how much are driven by right-wing political ideology.

Doubtless Thatcher was right to curtail the excesses of the trades union movement as the economic chaos that reined at the time was a result of their making, so bearing that in mind, are we now to see the Tories tackle the banks (and others) with equal ferocity?

In the frenzied debate on public sector finances, are we losing sight of bigger picture and those most responsible for pushing the UK to the edge of the economic precipice it now teeters on?

Edited by Dave Spart

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:lol:

Good post.

They really don't have many options.

Even Labour would have to do basically the same, if they had won the election.

BTW, in 5 years our debt to GDP will be around 100%. This will mean: no more borrowing, whoever wins it.

That is a way to put a cap gov. borrowing: max it out. :)

as far as I'm aware debt to gdp is already over 300% when off balance sheet liabilities are taken into account

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What does he mean 'were'?

Exactly.

Doesn't he mean we ARE on the brink of bankruptcy - but of course stating the true position sounds awful, which it is, but it would be better if he were honest rather than always trying to twist and spin.

They just can't help themselves trying to con people and look where the UK IS as a consequence.

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(...)

you have to wonder how much of the cuts due to be announced on October 20th are driven by economic necessity and how much are driven by right-wing political ideology.

You don't have to wonder. Just use maths:

Gov. debt of around £900bn

Annual deficit £170bn.

Hence debt still growing.

Gov. will try to balance the books within this 5 years.

After that, the next governments will have to start paying that debt.

This government will still be living beyond its means throughout this parliament.

those most responsible for pushing the UK to the edge of the economic precipice it now teeters on?

You mean the credit/debt/property bubble?

1) The former Chancellor Gordon Brown, for tampering with the inflation index in Dec 2003, forcing the BoE to keep interest rates too low for too long.

2) The tripartite structure (Treasury, the FSA and the BoE, created by Chancellor Brown) responsible for monetary policy, that allowed that bubble to grow.

Wake up DS! FGS!

Edited by Tired of Waiting

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:lol:

So what did you mean by: "those most responsible for pushing the UK to the edge of the economic precipice it now teeters on?" ?

If you still think that the MOST responsible was not Gordon Brown, then FGS, WAKE UP DS !

And I am talking not only about over-spending, but the BUBBLE TOO!

.

Edited by Tired of Waiting

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I distinctly recall his boss (and perhaps even Osborne too) being hauled off from the Tory conference in '08 to an emergency meeting with Gordon to agree to transferring the banks onto the taxpayer.

He could have said no then. He didn't.

Two sides of the same coin.

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Oh what a load of BS from Osbourne. Let's go after the benefit cheats. What does that cost the nation? 5 billion, really?

What about the tax avoidance cheats? Lord Ashcroft? Sir Philip Green?

God, if we made a few of these dodgy fellows pay their fair share of tax, I suspect we could wipe out the deficit pretty easily.

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So what did you mean by: "those most responsible for pushing the UK to the edge of the economic precipice it now teeters on?" ?

If you still think that the MOST responsible was not Gordon Brown, then FGS, WAKE UP DS !

And I am talking not only about over-spending, but the BUBBLE TOO!

.

Who do you really think wields most power? The international banking fraternity or the Prime Minister of the UK?

Edited by Dave Spart

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Oh what a load of BS from Osbourne. Let's go after the benefit cheats. What does that cost the nation? 5 billion, really?

What about the tax avoidance cheats? Lord Ashcroft? Sir Philip Green?

And how are you going to change the rules to stop this avoidance?

If you try and take money from these people they will work out a way to not pay it, even if that means not entering the UK at all and conducting their business by phone

tim

Edited by tim123

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And how are you going to change the rules to stop this avoidance?

If you try and take money from these people they will work out a way to not pay it, even if that means not entering the UK at all and conducting their business by phone

tim

If you want to stimulate the economy LOWER taxes.

Phase 1 lower tax for corporates, increase tax for the workers

Phase 2 retain lower tax for corporates, lower tax for the workers

In both phases, reduce size of the public sector.

Keep interest rates low to stimulate economy, pay the minimum percentage interest on outstanding debt

Whilst all the above going on, I'm going to work abroad.

Bye

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Who do you really think wields most power? The international banking fraternity or the Prime Minister of the UK?

Thethe real "bankers", the banks' owners, lost virtually everything:

Lloyds, 10 years:

lloyds10years.png

(source: yahoo finance)

It was a monumental car crash. Incompetence. By the monetary authorities.

Please, research more, and with an open mind, before posting again.

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We've got a printing press. USE IT ILLUMINATI SERVANT!

are we talking about the same labour party that he likes to party on oligarch's yachts with?

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Thethe real "bankers", the banks' owners, lost virtually everything:

Lloyds, 10 years:

lloyds10years.png

(source: yahoo finance)

It was a monumental car crash. Incompetence. By the monetary authorities.

Please, research more, and with an open mind, before posting again.

You would help your cause if you didn't confuse bank shareholders with bankers themselves. Yes, real bankers did lose virtually everything. Poor them. City bankers to receive £7bn bonuses this year.

And we're having to pay for it*. Read it and weap.

*Well, you might be, I don't live in the UK.

Edited by Dave Spart

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  • 239 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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