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Age Of Austerity To Continue For Decades, Warns Obr

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http://www.guardian.co.uk/business/2011/jul/13/age-austerity-continue-decades-obr

Office for Budget Responsibility report suggests UK will continue to pay the price for an ageing population and declining tax levels

Britain must brace itself for decades of austerity even after George Osborne's spending squeeze, to pay the price for an ageing population, the independent Office for Budget Responsibility (OBR) warned on Wednesday.

The OBR, set up by the chancellor to produce independent projections of the public finances, says the rising cost of healthcare and pensions, and declining tax revenues from the North Sea, will mean future governments have to take action to prevent debt levels rising inexorably.

Without fresh tax rises or spending cuts, the OBR says, the government's debt will hit a trough of 60% in the mid 2020s, compared with less than 70% now, before rising rapidly to hit 107% of GDP by 2060-61. Although the deterioration in the public finances is more than a decade away, the OBR urges politicians to make long-term decisions now, to prevent the economy drifting into a debt crisis as the population ages.

"Policymakers and would-be policymakers should certainly think carefully about the long-term consequences of any policies they introduce in the short term. And they should give thought too to the difficult choices that will confront this country once the challenge of the current consolidation has passed," the study says.

No politician is going to make decisions where the benefits will be seen in 2030 or 2040.

Short termist populist decisions win elections not decisions for long term stability and sustainability.

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the government's debt will hit a trough of 60% in the mid 2020s

Sooooo.... does that mean we are going to start borrowing less at some point?

Government borrowing hits April record

(I've not been holding my breath on medical advice.)

Damn, have I missed out on the age of aquarius?

"When the moon is in the 7th house".

7 houses. Was the moon a BTL landlord?

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...what they are saying is we need to earn our crust not borrow for it as the easy funny money has now gone....bring on sweat and endeavour....the issue ...for many that is not the acceptable way.... :rolleyes:

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No politician is going to make decisions where the benefits will be seen in 2030 or 2040.

Short termist populist decisions win elections not decisions for long term stability and sustainability.

I'm glad they've managed to predict the debt level to 3 significant figures, 50 years into the future. Gives you such a warm fuzzy feeling that they understand the concept of uncertainty.

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One of the OBR's key assumptions is that economic growth will continue at the +2% annual rate that's the average for the past 50 years.

The problem is this growth trend is flattening. Basically older innovations, such as the electrification of factories and the spread of car ownership, had a far bigger impact on economic growth than more recent innovations, such as the computerisation of businesses and the spread of air travel.

The OBR made a nod in this direction by re-running their projections with an alternative growth rate of +1.5%. The results are available in the full report here,

http://budgetresponsibility.independent.gov.uk/fiscal-sustainability-report-july-2011/

Needless to say, if the UK hamster starts tiring on the economic wheel, then we're really all fecked.

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UK debt set to pass 100pc of GDP, says watchdog

Britain's public sector debt is still on an "unsustainable" upwards path, the Office for Budget Responsibility (OBR) has warned, meaning a massive £22bn tax rise would be needed on top of the current austerity push to shrink it to its pre-crisis level.

http://www.telegraph.co.uk/finance/economics/8634300/UK-debt-set-to-pass-100pc-of-GDP-says-watchdog.html

pre crisis level ? ...what............ before brown as chancellor ?

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An anti-social one by the sound of it.

Arrogant Anti-social Moonies!

There was one time at least six Masonic Lodges in Marshal county. ... The lodge was closed in due form to meet on Saturday after full moon in each month

http://www.google.co.uk/#sclient=psy&hl=en&source=hp&q=masons+meet+saturday+after+full+moon&aq=f&aqi=&aql=&oq=&pbx=1&bav=on.2,or.r_gc.r_pw.&fp=80fecaac5518abcf&biw=1216&bih=493

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......Britain in all reality together with much of the western world should be passed on to debt management for education and control, if no joy the debt will then have to be sold on for 50p in the £1, see how it goes form there. ;)

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Arrogant Anti-social Moonies!

There was one time at least six Masonic Lodges in Marshal county. ... The lodge was closed in due form to meet on Saturday after full moon in each month

http://www.google.co.uk/#sclient=psy&hl=en&source=hp&q=masons+meet+saturday+after+full+moon&aq=f&aqi=&aql=&oq=&pbx=1&bav=on.2,or.r_gc.r_pw.&fp=80fecaac5518abcf&biw=1216&bih=493

if we were to get technical about the,it would be every 4 weeks.

as you correctly state,it would coincide with full moon,because it's based on luni-solar calender,much like ancient hebrew.

(look at how many sigificant events happen in hebrew,as well as celtic calendars)

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Its a start that the truth is beginning to come out though. This makes it easier for the MP's to stand up for what is right and not kowtowing to the public who are in the main ignorant to all the facts.

Want to rephrase that?

Politicians know better than the people? Where have you been since 1997?

The path the politicians want to follow requires no sense of right and wrong. They kowtow to the press and the central banks, not to the people.

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......Britain in all reality together with much of the western world should be passed on to debt management for education and control, if no joy the debt will then have to be sold on for 50p in the £1, see how it goes form there. ;)

Debt management = creditor doesn't have to declare loss + debtor is on the hook forever. Not good.

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Damn, have I missed out on the age of aquarius?

Sooooo.... does that mean we are going to start borrowing less at some point?

Government borrowing hits April record

(I've not been holding my breath on medical advice.)

"When the moon is in the 7th house".

7 houses. Was the moon a BTL landlord?

We're certainly in the Fifth Dimension (Twilight Zone)

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  • 312 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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