Jump to content
House Price Crash Forum
Har Fast

Uk's Total Debt Forecast To Hit £10 Trillion By 2015

Recommended Posts

telegraph report

pretty gloomy for the UK, but interesting remarks on interest rates/mortgages

The increased burden has so far been supported by low interest rates, but these are likely to rise "significantly" over the next five years, said PwC. The firm believes interest rates on mortgages may end up higher than before the recession, as tougher regulation pushes up lenders' costs.

not looking good for house prices...

"The UK's addiction to debt has reached alarming levels during the past decade," said John Hawksworth, chief economist at PwC.

The unprecedented levels of private sector debt would, sooner or later, have to be addressed, "either through debt being run down sharply, which would risk triggering another recession, or more likely through a persistently heavy debt service burden that could dampen economic growth for decades to come".

He added: "Either way, deleveraging will be a painful process for the UK."

... or the rest of the economy!

Edited by Har Fast

Share this post


Link to post
Share on other sites

Does anyone believe we'll actually knuckle down and pay off this debt in an honest fashion?

I certainly don't. There is simply too much of it now, the tail is wagging the dog.

Share this post


Link to post
Share on other sites

Read somewhere yesterday that if we sold every house in the UK at today's value we wouldn't cover 3/4 of our total debt :o

So with falling house prices QE2 3 and 4 and 5 and 6 etc where will we be in 2020.

Share this post


Link to post
Share on other sites

Does anyone believe we'll actually knuckle down and pay off this debt in an honest fashion?

I certainly don't. There is simply too much of it now, the tail is wagging the dog.

It wouldn't make much sense to knuckle down and pay it off. Considering the debt was magicked into existence in the first place. We can easily magic into existence more debt and more money to make that old debt easily manageable.

Or do something like roll all the bad debts into a bad bank, and just let that bank go under.

There is also no chance the pound will lose its value to foreigners. They can use it to trade freely in a free trade society and they can purchase and legally own property here.

Share this post


Link to post
Share on other sites

Does anyone believe we'll actually knuckle down and pay off this debt in an honest fashion?

Surely the solution to all this debt is to spend more money?

In fact spending more money seems to be a universal panacea for all our economic woes. Do economists really need to study for years and years if the answer is so simple and straightforward.

We clearly aren't spending enough. Spend more!

Share this post


Link to post
Share on other sites
But if the economy does not perform as well as expected, one plausible alternative scenario could still see the debt burden soar as high as
5.8 times of GDP
, the report said
.

All the poisons that have been lurking in the mud are beginning to hatch out.............

10TR and not the 4.8TR we were led to believe before? When is this Elephant in the sitting room going to impact our ability to maintain the facade of an economy with the world's highest house prices and most over valued currency?

We will soon be in as much red ink as the US...oh, hang on...................*

_____________________________

*US debt is out of control and is likely to overtake US gross domestic product by 2012, according to the latest reports.

The Daily Reckoning quotes Bloomberg reporting that US debt has risen past $13 trillion for the first time and that the amount owed will surpass GDP in 2012, based on forecasts by the International Monetary Fund.

Edited by Realistbear

Share this post


Link to post
Share on other sites

10TR and not the 4.8TR we were led to believe before? When is this Elephant in the sitting room going to impact our ability to maintain the facade of an economy with the world's highest house prices and most over valued currency?

Merv will be along soon to sort out that overpriced currency for us with another round of QE...

Share this post


Link to post
Share on other sites

It wouldn't make much sense to knuckle down and pay it off. Considering the debt was magicked into existence in the first place. We can easily magic into existence more debt and more money to make that old debt easily manageable.

Or do something like roll all the bad debts into a bad bank, and just let that bank go under.

There is also no chance the pound will lose its value to foreigners. They can use it to trade freely in a free trade society and they can purchase and legally own property here.

bad bank goes under.OK...what do you think will happen to its ASSETS...ie, the debt?

oh yeah...it gets sold to ANOTHER BANK.

Share this post


Link to post
Share on other sites

telegraph report

pretty gloomy for the UK, but interesting remarks on interest rates/mortgages

not looking good for house prices...

... or the rest of the economy!

10trn? I make that about 160k of debt for everyone in the UK. As debt is wealth, you'll all be rich innit?

Share this post


Link to post
Share on other sites

It wouldn't make much sense to knuckle down and pay it off. Considering the debt was magicked into existence in the first place. We can easily magic into existence more debt and more money to make that old debt easily manageable.

Or do something like roll all the bad debts into a bad bank, and just let that bank go under.

There is also no chance the pound will lose its value to foreigners. They can use it to trade freely in a free trade society and they can purchase and legally own property here.

Now I know you're crazy :lol:

Edited by Alan B'Stard MP

Share this post


Link to post
Share on other sites

Does anyone believe we'll actually knuckle down and pay off this debt in an honest fashion?

Absolutely - You'll be forced to, it's called deflation although some may call it slavery.

Does anyone believe that the government will inflate away your debts at the expense of their wealthy benefactors?

Share this post


Link to post
Share on other sites

So with falling house prices QE2 3 and 4 and 5 and 6 etc where will we be in 2020.

They will QE as much as possible but will be forced to stop when rates begin to rise.

My guess is at about QE2.5

Share this post


Link to post
Share on other sites

bad bank goes under.OK...what do you think will happen to its ASSETS...ie, the debt?

oh yeah...it gets sold to ANOTHER BANK.

I've noticed your progression to capitalization of late.

Have you considered Hyde Park as an alternative - or maybe red ink ?

Share this post


Link to post
Share on other sites
But if the economy does not perform as well as expected

Another of those "unexpected" results that we seem to get a lot of these days?

10trn? I make that about 160k of debt for everyone in the UK. As debt is wealth, you'll all be rich innit?

I'm greedy, can I have more than my fair share of debt?

Share this post


Link to post
Share on other sites

The largest portion of this debt is owed to the boomers by their children in the form on pension liabilities.

To be more precise, it's owned to the civil service employees who provided services for the boomers.

Basically, it's the boomers debt. Let them pay it. Draw a line. The further you are from retirement, the less you have to pay.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 145 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.