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TheCountOfNowhere

Uk Public Sector Borrows £12.1Bn In December

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You've clearly not got an economics degree from a top university,then you'd grasp that living within your means inhibits growth.

Yeah, sorry, I can grow as fast as I like until the point is reached when I cannot pay...if i base my growth on a pyramid structure I can grow for quite a while until that point is reached...but it will be reached eventually.

I'm not an economist...I can add up.

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You've clearly not got an economics degree from a top university,then you'd grasp that living within your means inhibits growth.

It's strange austerity innit. Osborne talks the talk and doesn't walk the walk. Still if you tell everybody it is austerity they will believe it, especially the British public, even the muppets at the IMF who predicted that we would be at the bottom of the European growth league.

With deficits like this, of cause you will be top.

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So cumulative borrowings for the current financial year are about £5Bn less than the equivalent period a year earlier:

Public borrowing for the 2013-14 financial year to date fell to £96.1bn in December - £4.8bn lower than the same period a year ago.

Doesn't exactly imply the sort of trend that will approximately eliminate the deficit on any sort of reasonable timescale.

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http://www.bbc.co.uk/news/business-25840293

The BBC headline:

"UK public sector borrowing falls to £12.1bn in December"

The spin is tangible.

I think I am going to bookmark that and use it in training sessions. Imagine the words 'falls to" replaced by "STILL" or "ONLY DECLINES TO" or "INCREASES OVERALL DEBT BY" and you get a clear example of how words make meaning.

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The debt isn't ever going to be paid off in any meaningful way (except by money printing), so why would they worry about running it up?

Priorities now are 'growth' and keeping the plates spinning. The consequences of achieving it through financial repression/QE lie somewhere in the fuzzy, undefined future as far as TPTB are concerned. Hopefully, to be faced by a different set of politicians after the current set make off with their loot.

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I like to look at it in this context

At the time at which the government did the flotation of Royal Mail shares, the whole of Royal Mail was valued at £3.3bn

All those depots, all those vans, all that machinery, all those bikes and all that labour of all those posties to move all those parcels and letters...

Well, do you know what, the whole shebang was valued at about 1 week's worth of deficit

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I like to look at it in this context

At the time at which the government did the flotation of Royal Mail shares, the whole of Royal Mail was valued at £3.3bn

All those depots, all those vans, all that machinery, all those bikes and all that labour of all those posties to move all those parcels and letters...

Well, do you know what, the whole shebang was valued at about 1 week's worth of deficit

.....or 1 months worth of interest paid on the debt itself.

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I like to look at it in this context

At the time at which the government did the flotation of Royal Mail shares, the whole of Royal Mail was valued at £3.3bn

All those depots, all those vans, all that machinery, all those bikes and all that labour of all those posties to move all those parcels and letters...

Well, do you know what, the whole shebang was valued at about 1 week's worth of deficit

Beautifully put. Osborne's idea of 'paying down the debt' is to borrow 7% of GDP a year on a permanent basis while generating less than 2% GDP growth! Absolute insanity.

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So that puts us on course for what, 5% reduction over last year ?

My guess is that we are still tightening faster than our competitors such as France, which is the key issue. We don't have to look great, just better than equivalent economies.

That coupled with lowering unemployment, faster rise in GDP and no rise in QE since god knows when, no wonder the pound is strengthening.

Still a lot of potential risks out there though.

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So that puts us on course for what, 5% reduction over last year ?

My guess is that we are still tightening faster than our competitors such as France, which is the key issue. We don't have to look great, just better than equivalent economies.

That coupled with lowering unemployment, faster rise in GDP and no rise in QE since god knows when, no wonder the pound is strengthening.

Still a lot of potential risks out there though.

I am shocked that the pound is still alive. Makes me realise just how deep in doo doo the rest of the world is. :huh:

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