Uk Borrowing Hits February Record - £Bn11.8

[dryrot]

Hi

http://www.bbc.co.uk/news/business-12816898

Public sector borrowing last month was £11.8bn, a record for the month of February.

The official figure, provided by the Office for National Statistics, was nearly double the £6.9bn forecast by economists. Public sector net borrowing now stands at £123.5bn for the financial year so far. This suggests the government remains on course to meet the £149bn borrowing total forecast for the full year. That figure comes from the government-appointed Office for Budgetary Responsibility (OBR). Net debt, which is the sum of all borrowing, was £875.8bn, the ONS said. That is equivalent to 58% of GDP or total economic output.

This time last year, the total was £729.9bn, or 50.8% of GDP.

"The public finance numbers for February were significantly worse than expected," said James Knightley from ING.

"Admittedly, recent numbers have been better than hoped, but today's outcome further reduces the likelihood of any formal giveaway in tomorrow's Budget."

[TheCountOfNowhere]

A lady I know that works for the NHS says they have run out of money...they are waiting for their next budget to pay the bills from the last one. She rekons they will have 6 months before they need the following years budget

[swissy_fit]

A lady I know that works for the NHS says they have run out of money...they are waiting for their next budget to pay the bills from the last one. She rekons they will have 6 months before they need the following years budget

So, about 6 months until the next lot of QE then.

[MinceBalls]

So, about 6 months until the next lot of QE then.

I can't see what else they think is the right thing to do...

I know it is wrong but they think it is right,

It's all going to end in tears

[General Congreve]

I can't see what else they think is the right thing to do...

I know it is wrong but they think it is right,

It's all going to end in tears

You are right, for most it will.

[TheCountOfNowhere]

I can't see what else they think is the right thing to do...

I know it is wrong but they think it is right,

It's all going to end in tears

The longer they leave interest rates low and they longer they keep spending and the more they print...they worse it will get.

No one wants to make the hard decisions and become unpopular. Someone will eventually have to make the hard decision. I'll do it if they like

The most likely solution...destruction and rebuilding...i.e. war...a big war....worked in the 1940's !!! Someone in government will work it out soon...and they rest of us will be cannon fodder.

Edited March 22, 2011 by TheCountOfNowhere

[Georgia O'Keeffe]

The longer they leave interest rates low and they longer they keep spending and the more they print...they worse it will get.

No one wants to make the hard decisions and become unpopular. Someone will eventually have to make the hard decision. I'll do it if they like

its all very exciting like a multitrillion game of kerplunk, my current betting is Labour getting lumped with the heavy marble action sometime in their next innings after the next election

[cashinmattress]

Too bad all of you are not bothering with taking on loans....

Your inaction is forcing the politicians hand into increasing the money velocity, and at your expense of course.

Hehe. Wonderful things, these central banks. There is no winning unless you have a revolution.

Edited March 22, 2011 by cashinmattress

[yellerkat]

Come on you lot! Don't you remember January's figures?

UK Jan public finances best in 2 yrs

Strong income tax receipts helped Britain to a bigger-than-expected surplus in its public finances in January, official data showed on Tuesday, putting the government firmly on track to meet its 2010/11 borrowing target.

Taken together, January's weren't as good as reported and February's aren't as bad as reported.

[leicestersq]

Come on you lot! Don't you remember January's figures?

UK Jan public finances best in 2 yrs

Strong income tax receipts helped Britain to a bigger-than-expected surplus in its public finances in January, official data showed on Tuesday, putting the government firmly on track to meet its 2010/11 borrowing target.

Taken together, January's weren't as good as reported and February's aren't as bad as reported.

Wasn't there a revision of the January figures?

[danlee74]

Wasn't there a revision of the January figures?

Yes ... first report 5.3bn surplus, revised to 6.3bn surplus so better than first thought.

Does not really allow for the terrible figure reported today ... mind you, that will be revised too! Oh the fun!!!!

In the 21st century with computing power as it is I am surprised we cannot press a button on the first day of the month to get the final figures for the entire previous month! I suppose that would not leave enough time to "spin in right" and do all of the necessary "seasonal adjustments"?!

[onesmallstep]

I could be wrong, but does this mean there is no way out.

Won't they end up cutting benefits and NHS spending by half and increasing taxes.

The telling thing is the length of time they have felt compelled to keep interest rates at this record low, is it an attempt to maintain asset prices or an attempt to create growth, either way it is very extreme and doesn't look like it's going to work.

Can anything be done to halt unemployment and the resulting spiral into oblivion.

Still summers coming.

[swissy_fit]

I could be wrong, but does this mean there is no way out.

Won't they end up cutting benefits and NHS spending by half and increasing taxes.

The telling thing is the length of time they have felt compelled to keep interest rates at this record low, is it an attempt to maintain asset prices or an attempt to create growth, either way it is very extreme and doesn't look like it's going to work.

Can anything be done to halt unemployment and the resulting spiral into oblivion.

Still summers coming.

There is a (very unpleasant) way out - cut spending to match the real ability to pay and shrink the economy to a point from which it can rebuild and default on debts.

But with the banksters in charge everywhere, they'll go for inflation.

[frenchy]

The longer they leave interest rates low and they longer they keep spending and the more they print...they worse it will get.

No one wants to make the hard decisions and become unpopular. Someone will eventually have to make the hard decision. I'll do it if they like

The most likely solution...destruction and rebuilding...i.e. war...a big war....worked in the 1940's !!! Someone in government will work it out soon...and they rest of us will be cannon fodder.

sadly, you may well be onto something, whether it is deliberately triggered by governments I doubt it, but could well be triggered by the unease and suffering caused by the incompetence of governments worldwide...

[Guest spp]

Fiat currencies always fail.

[mightytharg]

There is a (very unpleasant) way out - cut spending to match the real ability to pay and shrink the economy to a point from which it can rebuild and default on debts.

But with the banksters in charge everywhere, they'll go for inflation.

Why haven't they made the easy cuts? SMI, housing benefit (a lot more than these delayed cuts), "affordable housing" schemes that make housing less affordable. Military spending. Gifts to the EU. Cutting all these would make the world more pleasant.

I don't think it is an inability to make cuts, but an active decision to not make any.

[scottbeard]

Fiat currencies always fail.

In the long term we are all dead

Doesn't help in planning for the short term...

[aa3]

I could be wrong, but does this mean there is no way out.

Won't they end up cutting benefits and NHS spending by half and increasing taxes.

The telling thing is the length of time they have felt compelled to keep interest rates at this record low, is it an attempt to maintain asset prices or an attempt to create growth, either way it is very extreme and doesn't look like it's going to work.

Can anything be done to halt unemployment and the resulting spiral into oblivion.

Still summers coming.

I think they are in a box. As I said at the outset of the crisis, cutting our way out isn't an option with a fractional reserve monetary system. As it will just end in a deflationary death spiral.

Keeping rates at 0.5% and printing is still the only option to keep the game going. Where I think they failed was not implementing emergency measures to get the economy rolling. They are trying but at a snail's pace like opening up the construction sector of residential housing and related infrastructure.. would create a ton of jobs and get loans flowing.

Also gutting regulatiosn in many areas o the economy to allow business to happen. But all we have so far is talk of cutting the red tape, but a eyar into the Tory government and nothing has happened yet. Meanwhile the clock is ticking down fast. 4.4% inflation now.

[VeryMeanReversion]

A lady I know that works for the NHS says they have run out of money...they are waiting for their next budget to pay the bills from the last one. She rekons they will have 6 months before they need the following years budget

Nice approach, I wonder how long it will be before the government announces a 182 day year and that it has therefore succeeded in cutting the annual deficit.

[Realistbear]

Hi

http://www.bbc.co.uk/news/business-12816898

Public sector borrowing last month was £11.8bn, a record for the month of February.

The official figure, provided by the Office for National Statistics, was nearly double the £6.9bn forecast by economists. Public sector net borrowing now stands at £123.5bn for the financial year so far. This suggests the government remains on course to meet the £149bn borrowing total forecast for the full year. That figure comes from the government-appointed Office for Budgetary Responsibility (OBR). Net debt, which is the sum of all borrowing, was £875.8bn, the ONS said. That is equivalent to 58% of GDP or total economic output.

This time last year, the total was £729.9bn, or 50.8% of GDP.

"The public finance numbers for February were significantly worse than expected," said James Knightley from ING.

"Admittedly, recent numbers have been better than hoped, but today's outcome further reduces the likelihood of any formal giveaway in tomorrow's Budget."

Listening to BBC world while in Portugal (about to go belly up) and they are saying our debt will place us as the 2nd highest in the EU--presumably next in line to Greece. I also noted that the OBR has downgraded our growth to 1.7% which makes it that much harder for us to produce our way out of debt.

Despite this, the £ is up against the Euro from the 1.14's and also up vs. the $ into the 1.63-4 level. Like Japan, it seems seriously negative fundamentals are a boost to our prospects--at least as far as the value of our currency is concerned. Gone are the days when overwhelming debt, slowing growth and rising unemployment are bad news.