Jump to content
House Price Crash Forum
interestrateripoff

Uk Has Third Biggest Budget Deficit In Europe

Recommended Posts

http://www.telegraph.co.uk/finance/economics/8473705/UK-has-third-biggest-budget-deficit-in-Europe.html

Britain’s shortfall in its finances amounted to 10.4pc of gross domestic product (GDP) in 2010, according to data for each of the EU’s 27 member states from the statistics agency Eurostat.

That meant the UK had a bigger deficit, or annual shortfall, than the recently bailed-out Portugal and also Spain, which is viewed as the next euro-using nation to potentially need international aid.

The largest deficit in proportion to the size of the country’s economy was seen in Ireland, where the extra borrowing needed to shore up the banks left its deficit at 32.4pc of GDP.

Greece, which received a €110bn bail-out last year, was second with a deficit of 10.5pc, followed by the UK. Spain, at 9.2pc, and Portugal, at 9.1pc, were in fourth and fifth place.

Gordon really didn't try hard enough did he? Ireland have left everyone else standing with a deficit of 32.4% GDP.

Still at least we don't need bailing out.

Share this post


Link to post
Share on other sites

yes but at some point they have to accept that the state owned banks illiquid liabilities are never coming back, I believe that to be about 1.5trn so basically we are going to win easily, if we can only bring ourselves to put it in the back of the net.

Share this post


Link to post
Share on other sites

yes but at some point they have to accept that the state owned banks illiquid liabilities are never coming back, I believe that to be about 1.5trn so basically we are going to win easily, if we can only bring ourselves to put it in the back of the net.

But not quite, we can simply print and increase GDP and diminish the deficit ratio......

Share this post


Link to post
Share on other sites

its not a budget deficit that matters most, but the total debt.

even when the budget balances, say in 3 years time, we will be laboured with massive debt. this is what the most of the public still dont comprehend how bad the finances are.

this is because even though we can afford to pay for the debts, we are paying a higher proportion of our income on debt, which takes money away from things like schools, hospitals etc.

interest payments alone on debt in 2007 were £20 billion a year.

this year they will be £43 billion, and it will keep rising as long as there is a deficit.

so even if the deficit is reduced and the books balance in 2-3 years time i.e small deficit. the larger debt we have racked up means we will be permanently paying around £50billion in interest payments each year.

so its not just the current deficit that is the problem but the permanency of constantly being in massive debt as an after effect of the deficit.

the total budget is only £600billion. to put the interest were paying into context, the total budget for schools is £39 billion a year.

Edited by mfp123

Share this post


Link to post
Share on other sites

...no panic ...Labour say it's OK to take your time making cutbacks to save waste created by them....they were the kings of spend ...they know all about income and expenditure where expenditure bears no relation to income....in fact they see no connection ....they can't stop swigging the socialist champers ....Ed the Red and Odd Balls are experienced and know all..... :rolleyes:

Share this post


Link to post
Share on other sites

Labour say it's OK to take your time making cutbacks to save waste created by them

Cuts have to be better targeted, better thought out, joined-up across departments and not, in the absence of any credible plan for growth, cause an arrest or significant slowing down of the recovery.

LibCons have failed on all counts.

It's a simple message really. Really very simple.

Share this post


Link to post
Share on other sites

£40billion of interest payments means 8p of the rate of income tax (approximately 1/3 of income tax revenues) is used to pay back just interest.

not spending on schools, not spending on hospitals, or road improvements, or healthcare. not even paying down the debt.

just paying the interest we owe.

i.e the first 4 months of the income tax you pay from your wages, of everyone in the country, goes towards just paying the interest we owe.

Edited by mfp123

Share this post


Link to post
Share on other sites

£40billion of interest payments means 8p of the rate of income tax (approximately 1/3 of income tax revenues) is used to pay back just interest.

not spending on schools, not spending on hospitals, or road improvements, or healthcare. not even paying down the debt.

just paying the interest we owe.

i.e the first 4 months of the income tax you pay to the government, of everyone in the country, goes towards just paying the interest we owe.

And this was all because of profligate spending on public services was it?

Osborne pledges end to PFI

Osborne backs 61 PFI projects

FFS wake up. It doesn't matter what party is in power. We would be exactly where we are now whether it was Osborne, Brown, Darling or Hannah Montana in No. 11

Edit: I spelt the name of one of my all-time heroes wrong :huh:

Edited by needsleep

Share this post


Link to post
Share on other sites

Cuts have to be better targeted, better thought out, joined-up across departments and not, in the absence of any credible plan for growth, cause an arrest or significant slowing down of the recovery.

LibCons have failed on all counts.

It's a simple message really. Really very simple.

I agree. There's plenty of useless spending that they could have cut that they haven't got rid of yet.

Share this post


Link to post
Share on other sites

And this was all because of profligate spending on public services was it?

Osborne pledges end to PFI

Osborne backs 61 PFI projects

FFS wake up. It doesn't matter what party is in power. We would be exactly where we are now whether it was Osborne, Brown, Darling or Hannah Montana in No. 11

Edit: I spelt the name of one of my all-time heroes wrong :huh:

this is just where we are right now. forget the past, or who caused it. this is where we are today.

now we can keep borrowing, and even though we can pay back the interest - it means an ever larger proportion of income is being wasted just on interest.

thats why a line in the sand must be drawn to cut spending no matter how painful. because the debt mountain is cumulative.

becuase even after we cut spending ( which it hasnt even really taken full effect yet), that debt is still there lingering.

it would be like me adding £100,000 to your mortgage - sure if you rebalance your spending, go out less, budget your shopping etc.. you can probably pay the interest.

but you will be paying that interest every year, indefinitely.

i.e your lifestyle is going to be severely affected for the rest of your life unless you do something about that debt.

were currently not even at that stage of doing something about the debt. were still at the stage of reducing the amount we borrow...

Edited by mfp123

Share this post


Link to post
Share on other sites

its not a budget deficit that matters most, but the total debt.

Not entirely true. If we had no deficit then the debt would be manageable. The deficit is the hard problem, because noone wants the scale of cuts needed to plug it.

Italy has lived with a huge debt since long before the big recession. But with a relatively stable economy - no ballooning deficit - they haven't suffered our level of crisis.

Share this post


Link to post
Share on other sites

Not entirely true. If we had no deficit then the debt would be manageable. The deficit is the hard problem, because noone wants the scale of cuts needed to plug it.

Italy has lived with a huge debt since long before the big recession. But with a relatively stable economy - no ballooning deficit - they haven't suffered our level of crisis.

this is what i mean in that people dont comprehend the full effect in years to come.

as an anology.

if you borrow £20,000 a year and after 5 years you stop borrowing, your deficit is zero in year 5. i.e youve managed to balance the books in the 5th year.

but now youve accumulated £100,000 worth of debt. lets say the interest on that debt is £5000 a year.

in order to pay for that interest, youve decided to stop going out every week, and eat in instead of going out - your managing your debt so thats fine now. its stable.

but your life has been severely affected because you cant afford to go out anymore, indefinitely, until you sort out the debt.

even though you can pay back the interest, youve had to compromise something else to pay for it, so your your life ( or the economy) will become inefficient until your sort out that debt mountain youve built up.

Edited by mfp123

Share this post


Link to post
Share on other sites

Maybe Osborne would have done better. Remember all those lessons we can learn from the Irish?

The Irish are getting it hard and fast, but at least they've had a decent HPC!

When things eventually blow over their kids will be able to afford a home and people might actually want to invest there..

Edited by libspero

Share this post


Link to post
Share on other sites

this is just where we are right now. forget the past, or who caused it. this is where we are today.

now we can keep borrowing, and even though we can pay back the interest - it means an ever larger proportion of income is being wasted just on interest.

thats why a line in the sand must be drawn to cut spending no matter how painful. because the debt mountain is cumulative.

becuase even after we cut spending ( which it hasnt even really taken full effect yet), that debt is still there lingering.

it would be like me adding £100,000 to your mortgage - sure if you rebalance your spending, go out less, budget your shopping etc.. you can probably pay the interest.

but you will be paying that interest every year, indefinitely.

i.e your lifestyle is going to be severely affected for the rest of your life unless you do something about that debt.

were currently not even at that stage of doing something about the debt. were still at the stage of reducing the amount we borrow...

Edited by needsleep

Share this post


Link to post
Share on other sites

Maybe Osborne would have done better. Remember all those lessons we can learn from the Irish?

If Labour hadn't been in power for the last 13 years I doubt the conservatives would've been so desparate to squeeze every last drop out of the taxpayer and squirt it up the wall on featherbedded public sector workers, a twisted multicultural agenda and benefits famililes.

And the best you can do is say "but Osbourne once made a speech"

Share this post


Link to post
Share on other sites

Cuts have to be better targeted, better thought out, joined-up across departments and not, in the absence of any credible plan for growth, cause an arrest or significant slowing down of the recovery.

LibCons have failed on all counts.

It's a simple message really. Really very simple.

Which all of course takes time and should have been done 2 or 3 years ago; instead Labour spent that time pretending that there is no problem when anyone with a basic understanding of the situation could see otherwise.

So now we find ourselves in the disasterous posiiton of being out of money and out of time.

Share this post


Link to post
Share on other sites

And this was all because of profligate spending on public services was it?

Osborne pledges end to PFI

Osborne backs 61 PFI projects

FFS wake up. It doesn't matter what party is in power. We would be exactly where we are now whether it was Osborne, Brown, Darling or Hannah Montana in No. 11

Edit: I spelt the name of one of my all-time heroes wrong :huh:

Thanks for making this point I entirely agree with all the points you make above. All this party political posturing is just so much cack. People are inclined to forget that:

1) Before we got into this mess the Tories were promising to match Labour spending commitments.

2) Britain is far from the only country in the shit.

3) Had Labour won the election they would also have cut spending and inflated away the debt.

The George Osborne quote is a particular favourite of mine and it just goes to show how completely clueless they all are. PFI is idiocy and universally recognised as such and still it goes on. :angry:

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.

  • 284 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.