m4nclad Posted November 18, 2011 Share Posted November 18, 2011 According to the way I read the BBC report, the UK owes about 1.4 trillion Euro's to other countries, BUT - the UK is owed 7.3trillion Euro's by other countries. Could somebody tell me, if I have understood this correctly? this really is news to me! http://www.bbc.co.uk/news/business-15748696 I've got so many questions here, but before I ask I want to make sure my understanding is correct! Quote Link to comment Share on other sites More sharing options...
moneyscam Posted November 18, 2011 Share Posted November 18, 2011 According to the way I read the BBC report, the UK owes about 1.4 trillion Euro's to other countries, BUT - the UK is owed 7.3trillion Euro's by other countries. Could somebody tell me, if I have understood this correctly? this really is news to me! http://www.bbc.co.uk/news/business-15748696 I've got so many questions here, but before I ask I want to make sure my understanding is correct! Other way round, UK owes 7.3 trillion total, and is owed 1.4 trn by the countries in the link - it's not the total that is owed to the UK though, you can't work that out from the information on there. Quote Link to comment Share on other sites More sharing options...
porca misèria Posted November 18, 2011 Share Posted November 18, 2011 According to the way I read the BBC report, the UK owes about 1.4 trillion Euro's to other countries, BUT - the UK is owed 7.3trillion Euro's by other countries. Could somebody tell me, if I have understood this correctly? this really is news to me! http://www.bbc.co.uk/news/business-15748696 I've got so many questions here, but before I ask I want to make sure my understanding is correct! Huh? Where do you get those figures from anything in the BBC figures? It gives figures for total debt (€7.3 trillion - did you read that as a credit?), but not the credit side of the balance sheet, which I presume to be rather smaller. Obviously the City of London figures heavily on both sides of that balance sheet. It doesn't give a methodology: what exactly is included in the calculation? For example: consider the National Grid's debt, which is in the tens-of-billions. That's owed to investors around the world and presumably shown as both UK debt and UK credit, the latter representing the portion of the debt owned by UK investors. But National Grid also has substantial US operations and revenues. Does NG's investment in the US count as a US-to-UK debt in these figures? Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted November 18, 2011 Share Posted November 18, 2011 when you need euros to buy a thing in Europe, the Bank does the financials....you have paid for your thing. Again, this is BANKS overdoing the "investment" side of things. business doesnt require huge overhang in debt just to do a trade. Quote Link to comment Share on other sites More sharing options...
Trampa501 Posted November 18, 2011 Share Posted November 18, 2011 Very interesting chart - but is it correct? For instance it states that Spain owes the UK 74.9 billion Euros, yet in return the UK owes Spain 316.6 billion Euros Quote Link to comment Share on other sites More sharing options...
goldbug9999 Posted November 18, 2011 Share Posted November 18, 2011 Other way round, UK owes 7.3 trillion total, and is owed 1.4 trn by the countries in the link - it's not the total that is owed to the UK though, you can't work that out from the information on there. So a round of EU state defaults would leave us in pocket to the tune of 5.9trn ... I say we go for it Quote Link to comment Share on other sites More sharing options...
stormymonday_2011 Posted November 18, 2011 Share Posted November 18, 2011 Presumably a good part of that huge UK foreign debt consists of mortgages that were securitised by the banks and other mortgage lenders during the property boom. No wonder everyone is worried about a HPC. Quote Link to comment Share on other sites More sharing options...
the_big_beast Posted November 18, 2011 Share Posted November 18, 2011 Interesting chart: Who owes what to whom? UK Foreign Debt shows our exposure to events around the world - especially in France & Spain 436% of GDP / €117,580 per person only eclipsed by Ireland Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted November 18, 2011 Share Posted November 18, 2011 Very interesting chart - but is it correct? For instance it states that Spain owes the UK 74.9 billion Euros, yet in return the UK owes Spain 316.6 billion Euros Or is that because Santander got clever? It's not like the BBC would make a mistake.... Quote Link to comment Share on other sites More sharing options...
DementedTuna Posted November 20, 2011 Share Posted November 20, 2011 So, basically, in short, the answer is "It's a ******ing mess"? Quote Link to comment Share on other sites More sharing options...
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