Roman Roady Posted August 16, 2014 Share Posted August 16, 2014 This links show national debts: http://www.usdebtclock.org/world-debt-clock.html When you move the cursor over the actual figures, the figure is explained in the top title area. As can be seen the UK has a pretty high Public Debt to GDP ratio...this is described as being in the national currency. I guess this is the type that could be inflated away?? In which case it shows the advantage of being out of the Euro...see Greece, Ireland and Portugal. The UK does not seem to have a problem (relatively) here. However the second column titled: External Debt to GDP Ratio.... this is total debts to non residents repayable in FOREIGN currency, goods and services. I guess this cannot be inflated away?? This looks absolutely shocking for the UK. Ireland even worse. Whats the significance of this? What can be done? Why are we all still borrowing? Quote Link to comment Share on other sites More sharing options...
Eddie_George Posted August 16, 2014 Share Posted August 16, 2014 (edited) Whats the significance of this? What can be done? Why are we all still borrowing? There's only one thing we can do.... Hope that house prices triple and then MEW. Definition of 'External Debt' The portion of a country's debt that was borrowed from foreign lenders including commercial banks, governments or international financial institutions. These loans, including interest, must usually be paid in the currency in which the loan was made. http://www.investopedia.com/terms/e/external-debt.asp I guess it depends on what currency the debts are in as you said. But I guess they're mostly GILTs which can be inflated away. Edited August 16, 2014 by Eddie_George Quote Link to comment Share on other sites More sharing options...
frederico Posted August 16, 2014 Share Posted August 16, 2014 House prices will definitely triple stands to reason. Our leaders are in control. Quote Link to comment Share on other sites More sharing options...
Roman Roady Posted August 17, 2014 Author Share Posted August 17, 2014 I guess it depends on what currency the debts are in as you said. But I guess they're mostly GILTs which can be inflated away. Are Gilts not denominated in GBP? If so the cant appear in that category?? Quote Link to comment Share on other sites More sharing options...
Executive Sadman Posted August 17, 2014 Share Posted August 17, 2014 There's only one thing we can do.... Hope that house prices triple and then MEW. Definition of 'External Debt' The portion of a country's debt that was borrowed from foreign lenders including commercial banks, governments or international financial institutions. These loans, including interest, must usually be paid in the currency in which the loan was made. http://www.investopedia.com/terms/e/external-debt.asp I guess it depends on what currency the debts are in as you said. But I guess they're mostly GILTs which can be inflated away. Yes, most of our external debt is in pounds. Most of the debt in Iceland (and these obscure eastern euro countries that had even mortgages not in the local currency) is held in currencies other than their own. I don't see what difference it makes. Iceland defaulted. Default is salvation. Its GOOD to default on debt that is fraudulent and the people never consented to, not bad. Quote Link to comment Share on other sites More sharing options...
Roman Roady Posted August 17, 2014 Author Share Posted August 17, 2014 Yes, most of our external debt is in pounds. Most of the debt in Iceland (and these obscure eastern euro countries that had even mortgages not in the local currency) is held in currencies other than their own. I don't see what difference it makes. Iceland defaulted. Default is salvation. Its GOOD to default on debt that is fraudulent and the people never consented to, not bad. The definition was that this debt is not in pounds surely? If so then default is a real possibility...perhaps the only one. Debt of this scale will cause a few ripples internationally as well. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted August 17, 2014 Share Posted August 17, 2014 Debt is wealth I really can't see what the problem is!! Quote Link to comment Share on other sites More sharing options...
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