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


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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.

Probably a wise move tbh. Think you're spot on regarding the second para too.

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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?

That's a very cynical view on the matter... ;) I guess this is why it would have to be all or nothing.

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

No idea.

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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.

I'm not aware that Labour took us into Libya. But rejoice, for they are liberated.

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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?

..er...because life is unfair?

I guess you've taken a position or have a plan to move your money rather than waiting to get steam rollered?

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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.

What a mess.....the strange thing is we know something big is looming on the horizon, can almost hear the rumblings, sense the underling currents bubbling to the surface...it is as if the leaders of the world don't quite know what to do about it, are out of control and would have great difficulty coming to a consensus between them to make the inevitable consequences as painless as possible, wish I had confidence in them....think the worse, then anything else will be a bonus. ;)

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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.

Do you mean buying actual construction material, or stocks/shares?

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..er...because life is unfair?

I guess you've taken a position or have a plan to move your money rather than waiting to get steam rollered?

It is unfair. I just wanted to illustrate that there wont be a proper jubilee. There will be a big fight amongst different interest groups to try and keep the debts that they are owed, and to shed the ones where they owe money.

This battle will be political and economic. For example, pensioners may well keep their pension rights, but the markets, unwilling to pay them or support a government that tries to, may well reject the currency that those pensions are paid in. Receiving a pension in a hyper-inflated currency isnt fun.

FWIW I dont think that a jubilee will really work, if you measure results in terms of output goods and services. That wont necessarily stop people from advocating partial ones that benefit them just because I think that.

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Do you mean buying actual construction material, or stocks/shares?

Actual construction material, going to build as fast as I can.

Building material is only going to get more expensive so the material value of a house is still going up rapidly (in nominal £'s), even though the land component is dropping. I've seen the price of development land halve for the last village I lived in.

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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.

TB is a self appointed Middle East peace envoy.

I say he and his god awful wife should travel there - as a normal person - and live or die by how well he's done at creating peace.

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So Porsche finance will ring me up and say - "good news the outstanding balance on the 911 has been waived, happy motoring!" (hypothetical scenario)

Or I'll have to buy my house off someone who got given it in the jubilee. Time to get in debt it would seem!

I'm not too sure it would work quite like that, but yes I'm guessing a sizable fraction would lose out somehow. Would a trite cliché like there’s never a free lunch reassure you? No me neither.

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I'm not too sure it would work quite like that, but yes I'm guessing a sizable fraction would lose out somehow. Would a trite cliché like there’s never a free lunch reassure you? No me neither.

Whether there's a debt jubilee or all out inflation it would seem prudent to at least move any credit (cash) you have into assets. Alternatively, taking on some debt in tandem with your credit might be a smart move (assuming you can do something useful with it).

Of course, if deflation is by some miracle allowed to happen then the above is a distinctly bad idea but the chance that the little debt promises that the governments are free to create at will, in unlimited amounts, are going to increase in value is rather low IMO.

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Remember we're cutting too deep and too quick, so says Ed Balls.

Id hate to see what no cuts looks like.

In a representative democracy where 99% of the population cannot be bothered to inform itself properly, there is no incentive for a politician to make accurate statements because nobody will punish him for lying.

This is not Ed Balls' fault, it is the ignorant voter's fault. He is occupying the only niche left: saying things that sound good to your target constituency, regardless of their veracity.

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