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Uk Plunges Into Debt Danger Zone After Labour's 10-Year Borrowing Binge, Says Finance Watchdog

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The Daily Mail informs the sheeple that Labour sailed us down the river. Why will anyone ever vote labour again ... ?

Gordon Brown say "No more boom and bust" - but we have the biggest boom and then bust ever

Tony Blair says "Education, Education, Education" - then we have their children rioting on the streets of England because of ill discipline and no hope for the future.

What a great country they made this.

UK plunges into debt danger zone after Labour's 10-year borrowing binge, says finance watchdog

Britain’s debt levels are dangerously high and are damaging the economy, according to one of the world’s leading financial watchdogs.

Debt in the UK grew faster than in any other major economy in the last decade to £180,000 per household.

It means the country is in the danger zone following a ten-year borrowing binge under the last Labour government, a hard-hitting report from the Bank for International Settlements has revealed.

Dangerously high debt: The British economy has flat-lined for the last nine months

Dangerously high debt: The British economy has flat-lined for the last nine months

Its chief economist, Steve Cecchetti, said: ‘Beyond a certain level, debt is bad for growth. At low levels, debt is good. It is a source of economic growth and stability. But at high levels, private and public debt is bad, increasing volatility and retarding growth.’

The BIS said government, corporate and household debt in Britain jumped from 223 per cent of gross domestic product in 2000, or £2.18trillion, to 322 per cent, or £4.68trillion, in 2010. That is the equivalent of £180,000 per household.

The 99 percentage point increase was the biggest of any leading economy and left Britain deeper in the red than any country in the Group of Seven industrialised nations except Japan.

The watchdog warned that debt levels in Britain ‘will explode’ unless it gets to grips with future spending on health and pensions as the population gets older.

Scrap Euro, says German business chief

‘The debt problems facing advanced economies are even worse than we thought,’ said Mr Cecchetti, who is based at the BIS headquarters in Basel, Switzerland.

‘As public debt rises and populations age, growth will fall. As growth falls, debt rises even more, reinforcing the downward impact on an already low growth rate.

Hard-hitting: The report came from the Bank of International Settlements in Switzerland

‘The only possible conclusion is that those with high debt must act quickly and decisively to address their looming fiscal positions.

'The longer they wait, the bigger the negative impact will be on growth, and the harder it will be adjust.’

The Treasury welcomed the report – called The Real Effects of Debt – which was presented to central bankers and economists at the Jackson Hole summit in Wyoming last week.

‘This underlines the need for us to get a grip on our debt levels,’ said a spokesman.

‘Part of the reason the recovery is a challenging one is because all parts of the economy are having to adjust – and the numbers will continue to get bigger unless we get them under control.’

The watchdog said the danger limit for government debt is 80 to 100 per cent of a country’s GDP.

The threshold for corporate debt is 90 per cent of GDP and for household debt it is 85 per cent, it said.

Once these levels are reached, debt starts to hold back growth, the report found.

In 2010, Britain had government debt of nearly 90 per cent of GDP, corporate debt of 126 per cent and household debt of 106 per cent.

Of the G7 economies, only Britain and Canada were in the danger zone for all three types of debt.

The British economy has flat-lined for the last nine months, growing by just 0.2 per cent in the second quarter of the year following six months of stagnation.

The subdued recovery at home has been weakened further by a slowdown overseas, particularly in the U.S. and the eurozone, Britain’s two biggest trade partners.

Read more: http://www.dailymail.co.uk/news/article-2031946/UK-plunges-debt-danger-zone-Labours-10-year-borrowing-binge-says-finance-watchdog.html#ixzz1WaPSEgZe

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The Daily Mail informs the sheeple that Labour sailed us down the river. Why will anyone ever vote labour again ... ?

Gordon Brown say "No more boom and bust" - but we have the biggest boom and then bust ever

Tony Blair says "Education, Education, Education" - then we have their children rioting on the streets of England because of ill discipline and no hope for the future.

What a great country they made this.

Read more: http://www.dailymail.co.uk/news/article-2031946/UK-plunges-debt-danger-zone-Labours-10-year-borrowing-binge-says-finance-watchdog.html#ixzz1WaPSEgZe

Corporate Debt Boom - went skywards early 90s (via the tech boom) effectively replacing the personal debt boom that started taking off in the 80s via Banking and BS deregulation and mortgage expansion and stuttered under a Western blip of higher interest rates in the early 90s (was Gordon advising Major and inventing the tinternet at the same time, what a guy)

Personal debt boom began in the 80s via prementioned banking and BS deregulation and mortgages and intro of China to GATT (was gordon advising Maggie, what a guy)

Govt debt boom, yep you can have that its effectively Labours (stasiesque size public sector nonsense used to hold back unemployment along with higher educashion for more because they couldnt be arsed to work hard and fix the fundamental economic imbalances the same as the tories) but seeing as the other two were fundamentally tory in the making you can see the nonsense of making political arguments for this credit cycle

Both parties run policies forcing behaviour towards debt expansion via favourasble debt taxation policy and the current tory solution to this debt problem is to see much greater personal debt expansion over the next few years to get it off the govts books, much the same policy they used in the 80s whilst ignoring the reality of the current personal debt saturation (that policy with 30 years hindsight of what its resulted in clearly worked well so lets try to do it again) Its why Grantley Schapps is so unpopular on here, he has been given the unenviable task of pushing further debt out to the private sector the only way any uk govt has known and can be arshed with in the last 30 years, via mortgages so they can call it growth without relevance to the productivity of that debt

Edited by Tamara De Lempicka

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Yes people will still vote Labour as Ed Balls will tell them it's all the Tories fault for cutting spending.

And if you read the daily mirror it says exactly this. It also says that Cameron is a baby eating Nazi paedophile. Not in so many words but that's what it implies.

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Debt danger? Faltering economy? Collapse in confidence? That will be a buy signal then:

FTSE 100 5,327.16 +58.50 (1.11%)

FTSE 250 10,402.69 +159.54 (1.56%)

FTSE All Share 2,765.36 +31.47 (1.15%)

techMARK Focus 2,022.89 +36.83 (1.85%)

Buy buy buy!!!!

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Britain’s debt levels are dangerously high and are damaging the economy, according to one of the world’s leading financial watchdogs.

:lol: "Watchdogs", yeah right, what have they been "watching" all those years

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UK plunges into debt danger zone after Labour's 10-year borrowing binge, says finance watchdog.

After not during? Some watchdog that :lol:

It typifies one of the fundamental problems with the UK economy - apparent lack of anticipation by most all concerned.

Edited by billybong

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  • 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%



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