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U.k. Has Biggest August Budget Deficit On Record On Spending

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Austerity means record spending, debt is wealth, war is peace...

http://www.bloomberg.com/news/2011-09-21/u-k-august-public-sector-finances-reconciliation-table-.html

Britain had its biggest budget deficit for any August since modern records began in 1993 as government spending jumped and income-tax receipts declined.

The shortfall of 15.9 billion pounds ($25 billion), which excludes government support for banks, compares with 14 billion pounds a year earlier, the Office for National Statistics said in London today. The median of 17 forecasts in a Bloomberg News survey was for a deficit of 13 billion pounds. Revenue rose 5.9 percent and spending increased 7.2 percent.

Doubts over whether Chancellor of the Exchequer George Osborne can hit his deficit-reduction goals increased yesterday after the International Monetary Fund lowered its growth forecasts for Britain, the U.S. and the euro region, warning that strong action was needed to prevent a return to recession.

“It’s increasingly looking as though the public finances are reacting to the slowdown in the economy and it’s looking unlikely that the public finances will hit the Office for budget Responsibility’s forecast for the year,” said Philip Shaw, an economist at Investec Securities in London. “The public finances are adding to the case for more quantitative easing” by the Bank of England.

The pound extended its decline against the dollar after Bank of England minutes showed policy makers see an expansion of their bond-buying program as increasingly probable. The U.K. currency weakened 0.6 percent to $1.5638 as of 9:35 a.m. in London. It depreciated 0.2 percent to 87.27 pence per euro.

...

More at the link.

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How unexpected, no one could have predicted this especially in such a strong recovery environment.

Still the £5bn of extra spending to be announced will save us all.

Thank god for this deficit spending helping to prop up GDP.

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There is still a slim chance someone could turn this situation around, so until that slim chance disappears, the orders from above are to spend spend spend.

When we are totally ******ed, it is asset stripping time.

Edited by Lewis Gordon Pugh

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This is a consequence of inheriting a disastrous situation from labour, which guaranteed a growing deficit through its tax punishment of the private sector and generous largesse to the public sector and families on benefits, and the Con Dems taking that legacy, and accentuating it.

The individuals of the UK need to look to see how the Greeks have prepared for the collapse when their government ran out of money. It is a shame that we cant run the same scam as the Greeks, blackmailing the IMF into getting more money because defaulting on their bonds would collapse the banking system. We cant do that because the UK is too big to bail. Still we had better prepare.

Go long tin openers.

Edited by leicestersq

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Hooray, more borrowing....we're saved

The pretend cuts are not working.

The real cuts are going to hurt so much more.

On the housing market front today, EAs in Northampton have woke up today and decided to reduce the asking price on everything.

Welcome to the fear phase.

P.S. At least that extra 5 billion they want to borrow to spend on "stuff" won't be noticed now.

Edited by TheCountOfNowhere

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What did you all expect?

Fighting wars in three countries, jailing people for thought crimes alongside state sponsored wealth grabbing doesn't come cheap.

And to think some of you voted for this. Austerity, ha don't make me laugh, some pigs are obviously more equal than others.

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Your surprised.

Not really....In the news this week:

the report in the news about the copper and his 110K income ( 70 over-time payments ? )

Speaking to someone in the know today, they reckon it's not uncommon for certain groups of coppers to get £80k+ ( including over-time ).

It transpires Tony Blair gets 2/3 coppers all the time, they travel abroad with him ( at our expense ) and they get to travel in non-cattle class standard of flights. They accrue massive over-time.

Then their's the news of the Crimal MP locked up for 16 months, released after 4 months ( spent in an open prison !!! ), he stoke 14K. if I stole 14 K from 1 person I'd be banged up for years. He stole 14K from 60million people and get got off lightly. What sort of a deterrent is that. The MPs should be locked up and the key thrown aware, made a real example of.

Still, looks like the IMF are playing hardball with Greece...

http://www.bbc.co.uk/news/business-14999363

It's not coincidence that they starting talking again last night :P

I can hardly wait for the day the IMF is asked to visit us :lol:

Edited by TheCountOfNowhere

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Here's a chart showing the titanic scale of the government's savage spending cuts (courtesy the ONS):

pubfin_0811a.gif

And the receipts:

pubfin_0811b.gif

The cause : Inflation at 5% and BoE think inflation is not a problem...

Classic cause of hyperinflation - government expenses go up, borrow/print more, expenses go up even more, print/borrow, loop...

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Here's a chart showing the titanic scale of the government's savage spending cuts (courtesy the ONS):

pubfin_0811a.gif

And the receipts:

pubfin_0811b.gif

Here's a pearl I found in the comments area of the DT Greece page:

"As Marc Faber rightly said ' the trust of the ignorant is the liar's most powerful tool'."

Edited by _w_

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I must be the only one that just doesn't care any more.

I reached that point some time ago. I'm 44, no kids (don't want any), no house with no real prospects of affording one. I'll be dead in 40 years if I last that long - I'm just enjoying myself while I can. The people in this country keep choosing governments who perpetuate the ridiculous situation we're in so they deserve everything they get. I turn up to work simply to keep myself in Avgas. I'm going to sit back and watch it all fall apart, laughing hysterically all the way.

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Hooray, more borrowing....we're saved

The pretend cuts are not working.

The real cuts are going to hurt so much more.

On the housing market front today, EAs in Northampton have woke up today and decided to reduce the asking price on everything.

Welcome to the fear phase.

P.S. At least that extra 5 billion they want to borrow to spend on "stuff" won't be noticed now.

As I have said before; we are at a debt level which is beyond simply 'growing' out of them. The private sector will NOT create enough jobs to take up ex public sector slack and that's that! It is already falling behind and will continue to do so. It is admitted that our debts are actually WORSE than most PIIGS. We have currently pursuaded markets the cuts are the road to a cure. But soon they will find out they are not. The what will we do as bond rates rise and I predict they will do within 12 months as this unravels.

It is all a denial of the fact that the structural deficit cannot be cured by growth - it's just too big in a world recession to do so.

The world needs to have debt forgiveness talks. China must take some blame for pegging its curency to the dollar and taking all the jobs away from US and Europe, then lending back the money to buy their manufactured goods - for about the last 20 years. What did they think would happen if they continually leant to the US which never had enough to pay its bills in any month/year anyone can recall? Talk of imbalance in our economy needs to be translated to world terms.

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I reached that point some time ago. I'm 44, no kids (don't want any), no house with no real prospects of affording one. I'll be dead in 40 years if I last that long - I'm just enjoying myself while I can. The people in this country keep choosing governments who perpetuate the ridiculous situation we're in so they deserve everything they get. I turn up to work simply to keep myself in Avgas. I'm going to sit back and watch it all fall apart, laughing hysterically all the way.

We should all have a laugh at something to keep going, but the truth is rather ugly for probably many of us at present. Govts over the last 40 years have all failed to think ahead. None of them spent any time ensuring we maintained a manufacturing base. It was 30% of the economy in Thatchers time. It is now 12%. Pre crash - The financial service sector became 38% of the economy! Now that is risky beyond belief - oh and of course no one in govt noticed so long as the revenue kept coming.

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As I have said before; we are at a debt level which is beyond simply 'growing' out of them. The private sector will NOT create enough jobs to take up ex public sector slack and that's that! It is already falling behind and will continue to do so. It is admitted that our debts are actually WORSE than most PIIGS. We have currently pursuaded markets the cuts are the road to a cure. But soon they will find out they are not. The what will we do as bond rates rise and I predict they will do within 12 months as this unravels.

It is all a denial of the fact that the structural deficit cannot be cured by growth - it's just too big in a world recession to do so.

The world needs to have debt forgiveness talks. China must take some blame for pegging its curency to the dollar and taking all the jobs away from US and Europe, then lending back the money to buy their manufactured goods - for about the last 20 years. What did they think would happen if they continually leant to the US which never had enough to pay its bills in any month/year anyone can recall? Talk of imbalance in our economy needs to be translated to world terms.

I think at some point they will either agree on some sort of jubilee or they will inflate on a global scale. I think governments need to go through the various phases of attempt before acceptance, time scale being very open to all this.

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I think at some point they will either agree on some sort of jubilee..

This is what I think. Greece first, then the other PIIGS, then pretty much everyone else.

Global wide debt write offs.

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This is what I think. Greece first, then the other PIIGS, then pretty much everyone else.

Global wide debt write offs.

The thing is about jubilee's, is vested interests will do their best to ensure that the debt they are owed isnt one of the ones written off. This is of course unfair, as why should some have a jubilee and not others?

State pensions are paid out of an off balance sheet debt, will that be subject to jubilee?

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This is what I think. Greece first, then the other PIIGS, then pretty much everyone else.

Global wide debt write offs.

In the meantime, I'm converting my £ to construction materials as fast as possible rather than paying down the mortgage. I have no faith in money (debt), I want real stuff.

Regarding China, their dollars savings will never be honoured by the US for real assets.

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  • 276 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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