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George Osbourne Cuts The National Debt

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UK government sells Eurostar stake for £757.1m

http://www.bbc.co.uk/news/business-31721334

The UK government has announced that it is selling its 40% stake in the cross-Channel train operator Eurostar to an Anglo-Canadian consortium for £757.1m.

Chancellor George Osborne said the stake had fetched "far more than people expected we'd be able to sell it for".

He added: "This is a very good deal - it means we can cut the national debt, it means we can invest in our national infrastructure and it's fantastic value for British taxpayers. It's all part of our long-term plan to secure Britain's future."

Well done George, £757 million will certainly make a dent in the National Debt, why not remind the electorate exactly how much that debt is and how much it has grown since you got into office. ******wit.

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So that we could all economically benefit from closer participation in Europe I thought that inexpensive travel between here and there was essential. IN the lsat year huge costs have been lumped onto cross channel ferries through pollution regs - seems that now we are in then cheap(er) travel is very much off the agenda.

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Do folk tend to sell assets at high prices if they think they will shortly sharply devalue? I would. In fact, I did. Flat sold near peak price in Oct 2014.

#content

Another sign that they all know what's coming?

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How does £757 million cut the national debt when the deficit this year will be £80 BILLION (or thereabouts) ?

Edited by Errol

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How does £757 million cut the national debt when the deficit this year will be £80 BILLION (or thereabouts) ?

Stop being picky....

The national debt is £1.377 trillion.

I admit my maths maybe out please double check that I've got the 0's correct but I think George has just reduced the national debt by a whopping 0.055%.

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How does £757 million cut the national debt when the deficit this year will be £80 BILLION (or thereabouts) ?

Indeed the accruing debt is about 1.5 trillion. We would need 1,982 such sales to clear that and that's even before getting onto the off balance sheet liabilities.

Edit. Oh I see interestrateripoff has been doing some maths too and beat me to it.

Edited by crashmonitor

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OK so I'm clearly thinking waaaaaaay too small.

I'm new to this stuff. I can probably get closer to comprehending the size of the universe than the amount of non-existent money the modern world has been built upon.

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OK so I'm clearly thinking waaaaaaay too small.

I'm new to this stuff. I can probably get closer to comprehending the size of the universe than the amount of non-existent money the modern world has been built upon.

It's just as well they will never have to pay it back and if the Markets lose confidence it will be monetised away via inflation.

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Indeed the accruing debt is about 1.5 trillion.

Context: London's residential property is worth 35% of the value of all the homes in Britain, according to estate agents Stirling Ackroyd. They calculate that London homes are worth over £1.5 trillion and they expect that figure to reach £2.1 trillion over the next three years. To show the disparity between London and other parts of the UK, they worked out that the homes in Hackney, Tower Hamlets and Southwark are worth more than all the homes in Wales.

http://www.itv.com/news/london/2014-09-04/housing-in-london-worth-over-1-5-trillion/

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UK government sells Eurostar stake for £757.1m

http://www.bbc.co.uk/news/business-31721334

The UK government has announced that it is selling its 40% stake in the cross-Channel train operator Eurostar to our Bullingdon mates for £757.1m.

Chancellor George Osborne said the stake had fetched "far less than market value".

He added: "This is a very good deal for our friends - it means they can stay in the 1%, it also means our debt figures will look better.

It's all part of our long-term plan to secure Britain's future."

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Of course, on the one hand he says selling off 'national assets' (been there, done that) will both allow him to reduce the national debt and invest in infrastructure - oh the irony. Same ol' lies and obfuscation. Like the Labour party taxing the very rich (with highly paid accountants) or 5% of pensioners who get their heating free to fund the behemoth NHS amongst a myriad of other things.

It's a bit like #TheDress debate they are playing with our heads.

Edited by tinker

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Of course, on the one hand he says selling off 'national assets' (been there, done that) will both allow him to reduce the national debt and invest in infrastructure - oh the irony. Same ol' lies and obfuscation. Like the Labour party taxing the very rich (with highly paid accountants) or 5% of pensioners who get their heating free to fund the behemoth NHS amongst a myriad of other things.

It's a bit like #TheDress debate they are playing with our heads.

The joys of a health and pension Ponzi scheme once claims on the Ponzi become payable. Spending on health was 3% of GDP in 1970 and now 8%. Similarly spending on pensions more than doubled. Think there is any chance of money left for house building 1960s style..no f**king chance.

http://www.ukpublicspending.co.uk/spending_brief.php

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I looked at our debt this morning and it's closer to £1.5tn than £1.3tn. Insane that this doesn't sound like much money anymore, but it is £200,000,000,000, or 199,225,000,000 thank to Osborne paying off the debt...

Madness.

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Sadly many will think that the £775m will have paid of a significant part of the debt, say 5% as it is lots of money and the sale of a major asset. When in reality the sale makes no substantive difference ... oh I have just found 5p in my other trouser pocket .... I am rich rich rich.

A bit like the many that think that confiscating the Banker's Bonuses (about 5 billion pounds) will keep the welfare state going. it wouldn't even last a week.

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There can't be that much left to sell.....of any value, meaning that anyone would want to buy. ;)

Buildiing land...oh hang on that would crash the Market.

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On the basis that it will do noting of any statisticial measure to the national debt there must be some other benefit to someone, somewhere.

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On the basis that it will do noting of any statisticial measure to the national debt there must be some other benefit to someone, somewhere.

Isn't this really a public assertion that all the paper sterling in existence are still good to buy UK assets?

When you go bust, your creditors take your stuff. This is what has been happening to the UK for the past few decades.

We have to continue to let our creditors convert their sterling into UK infrastructure & London homes, or the pound is toast.

Maybe the problem is what happens when there is no more UK infrastructure left to sell.

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There can't be that much left to sell.....of any value, meaning that anyone would want to buy. ;)

When a shepherd has sold his house, and his possessions, all that is left is his land and his flock.

I think the land has already gone, so we're next.

:blink:

Edited by TheCountOfNowhere

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Stop being picky....

The national debt is £1.377 trillion.

I admit my maths maybe out please double check that I've got the 0's correct but I think George has just reduced the national debt by a whopping 0.055%.

Well done George! Although, He's forgotten to mention what income has been lost from selling this asset? :P

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