Fairyland Posted December 1, 2017 Share Posted December 1, 2017 I have posted this in the BOE thread but it deserves a separate thread Telegraph: Bank of England warning over debt: borrowing puts UK at risk of Venezuela-style collapse, official warns Quote Britain cannot afford to borrow more without jeopardising the country’s financial stability, a senior Bank of England official has warned. Richard Sharp said the Government had already borrowed an extra £1 trillion since the 2008 financial crisis. Borrowing more could put the country at risk of suffering from a collapse similar to that experienced by Venezuela, he suggested. Mr Sharp, a member of the Bank’s Financial Stability Committee, spokejust days after Philip Hammond announced a £25 billion spending spree in the Budget and at a time when the Labour Party is advocating borrowing an extra £250 billion. Quote Link to comment Share on other sites More sharing options...
Fairyland Posted December 1, 2017 Author Share Posted December 1, 2017 (edited) Question: What will they do to reduce borrowing? And, what will happen to the over leveraged? Presumably, this will also impact NHS, welfare and other public services. OTH, is this a preparation for IR hike? Edited December 1, 2017 by Fairyland Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted December 1, 2017 Share Posted December 1, 2017 8 minutes ago, Fairyland said: Question: What will they do to reduce borrowing? And, what will happen to the over leveraged? Presumably, this will also impact NHS, welfare and other public services. OTH, is this a preparation for IR hike? They'll probably try (try being the operative word) to do nothing and keep the plates spinning until after Brexit, or the next election. Quote Link to comment Share on other sites More sharing options...
winkie Posted December 1, 2017 Share Posted December 1, 2017 To reduce borrowing they will sell off everything they can then privatise it.......nothing will happen to the over leveraged, they will walk away or consolidate.....it is the lenders and other investors that allowed and encouraged them to leaverage up that be hit the hardest.......paying wages with debt can only continue for a short period of time......an economy can't grow on fairy dust. Quote Link to comment Share on other sites More sharing options...
zugzwang Posted December 1, 2017 Share Posted December 1, 2017 Venezuela has a lovely semi-tropical climate, magnificent mountains, warm sunny beaches, and is home the largest nature reserve in the world. Emulating that is a fine ambition which the Bank of England should be commended for recognising. Quote Link to comment Share on other sites More sharing options...
Fairyland Posted December 1, 2017 Author Share Posted December 1, 2017 (edited) 16 minutes ago, winkie said: To reduce borrowing they will sell off everything they can then privatise it.......nothing will happen to the over leveraged, they will walk away or consolidate.....it is the lenders and other investors that allowed and encouraged them to leaverage up that be hit the hardest.......paying wages with debt can only continue for a short period of time......an economy can't grow on fairy dust. Paying debt with wages .... This There are some lovely 3/4 family houses on the market with London movers price tag. Even if one can afford to buy is it worth competing hard earned money with unearned money? And of course be a debt slave till retirement. I believe many sensible buyers would be thinking on these lines... Edited December 1, 2017 by Fairyland Quote Link to comment Share on other sites More sharing options...
Fairyland Posted December 1, 2017 Author Share Posted December 1, 2017 9 minutes ago, zugzwang said: Venezuela has a lovely semi-tropical climate, magnificent mountains, warm sunny beaches, and is home the largest nature reserve in the world. Emulating that is a fine ambition which the Bank of England should be commended for recognising. LOL. Quote Link to comment Share on other sites More sharing options...
winkie Posted December 1, 2017 Share Posted December 1, 2017 4 minutes ago, Fairyland said: Paying debt with wages .... This There are some lovely 3/4 family houses on the market with London movers price tag. Even if one can afford to buy is it worth competing hard earned money with unearned money? And of course be a debt slave till retirement. I believe many sensible buyers would be thinking on these lines... ......low or no profit, productivity or growth, pick the relevant buzz word/s......wages paid with debt....debt paid with wages........so only ever growing amounts of available, cheap and trusted debt will keep the plates spinning? Quote Link to comment Share on other sites More sharing options...
crouch Posted December 1, 2017 Share Posted December 1, 2017 35 minutes ago, Fairyland said: Question: What will they do to reduce borrowing? And, what will happen to the over leveraged? Presumably, this will also impact NHS, welfare and other public services. OTH, is this a preparation for IR hike? Well, the government still has some sort of austerity policy which appears to make absolutely no difference and we go on with what amounts to a structural deficit. I think, despite all the rhetoric, that the government have thrown in the towel and the policy is not stealth austerity but Mr Micawber. Of course it won't work and I would think that the likeliest course is an eventual collapse in the £ which would almost certainly force IR rises and that of course would puncture all the bubbles and send the economy into recession. They cannot reduce rates and any printing will simply compound the difficulties with inflation so they are out. Quote Link to comment Share on other sites More sharing options...
longgone Posted December 1, 2017 Share Posted December 1, 2017 and the point of the last 10 years was ?????? Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted December 1, 2017 Share Posted December 1, 2017 (edited) 3 hours ago, Fairyland said: I have posted this in the BOE thread but it deserves a separate thread Telegraph: Bank of England warning over debt: borrowing puts UK at risk of Venezuela-style collapse, official warns This fits in perfectly what what I've been saying. The bankers know they're pushed the debt as much as they can. They're now in a much better position to weather a storm. The storm is coming. The politicians are in for a shock when the bankers force them to accept reality. The big problem is if the bankers have over egged it and the currency does collapse or a chain of banks go under, followed by civil unredt ( aimed at the bankers ). The British establishment are masters at survival, I dont think they want to be strung up from lamp posts so will do what's necessary to maintain the status quo. If that means building a bonfire from BTLers and BOMANDs 40% deposits then that's what'll happen. Understanding Human nature is more important than understanding economics Edited December 1, 2017 by TheCountOfNowhere Quote Link to comment Share on other sites More sharing options...
Funn3r Posted December 1, 2017 Share Posted December 1, 2017 Not too difficult to govern a nation of renter debt-serfs. If they kick up just yank their chain a bit to remind them who's boss. Not so easy with mortgage-free home-owners with decent pensions. TPTB had to gut the latter and BOMAD was the perfect weapon, then delete all that wealth with a price crash. Quote Link to comment Share on other sites More sharing options...
Fairyland Posted December 1, 2017 Author Share Posted December 1, 2017 (edited) 1 hour ago, TheCountOfNowhere said: This fits in perfectly what what I've been saying. The bankers know they're pushed the debt as much as they can. They're now in a much better position to weather a storm. The storm is coming. The politicians are in for a shock when the bankers force them to accept reality. The big problem is if the bankers have over egged it and the currency does collapse or a chain of banks go under, followed by civil unredt ( aimed at the bankers ). The British establishment are masters at survival, I dont think they want to be strung up from lamp posts so will do what's necessary to maintain the status quo. If that means building a bonfire from BTLers and BOMANDs 40% deposits then that's what'll happen. Understanding Human nature is more important than understanding economics Not sure if any chain is going under yet but our RBS is undergoing a change - RBS to close one in four branches and shed 680 jobs Seriously though if a Venezuela kind of situation arises how will we survive? Edited December 1, 2017 by Fairyland Quote Link to comment Share on other sites More sharing options...
Unexpected Posted December 1, 2017 Share Posted December 1, 2017 1 hour ago, Fairyland said: Not sure if any chain is going under yet but our RBS is undergoing a change - RBS to close one in four branches and shed 680 jobs Seriously though if a Venezuela kind of situation arises how will we survive? Cannibalism + FOM Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted December 1, 2017 Share Posted December 1, 2017 2 hours ago, Fairyland said: Not sure if any chain is going under yet but our RBS is undergoing a change - RBS to close one in four branches and shed 680 jobs Seriously though if a Venezuela kind of situation arises how will we survive? Let them eat bricks, Quote Link to comment Share on other sites More sharing options...
neon tetra Posted December 1, 2017 Share Posted December 1, 2017 6 hours ago, zugzwang said: Venezuela has a lovely semi-tropical climate, magnificent mountains, warm sunny beaches, and is home the largest nature reserve in the world. Emulating that is a fine ambition which the Bank of England should be commended for recognising. I love you for this...! (sorry, bit pissed) Quote Link to comment Share on other sites More sharing options...
“Nasty Piece of work” Posted December 1, 2017 Share Posted December 1, 2017 3 hours ago, TheCountOfNowhere said: followed by civil unrest ( aimed at the bankers ). Unfortunately, Joe Public are too pussy-like for stringing people up (or whatever). It would focus a few minds that badly need it. Quote Link to comment Share on other sites More sharing options...
Dogtanian Posted December 1, 2017 Share Posted December 1, 2017 3 minutes ago, Freezer? Best place for it said: Unfortunately, Joe Public are too pussy-like for stringing people up (or whatever). It would focus a few minds that badly need it. Yep, just can't see that kind of action in the UK, at least from the broad swathe of "middle classes". South America yes, Africa yes. Damp cold Britain no. Maybe a bit more global warming would alter things? Quote Link to comment Share on other sites More sharing options...
longgone Posted December 1, 2017 Share Posted December 1, 2017 7 hours ago, winkie said: To reduce borrowing they will sell off everything they can then privatise it.......nothing will happen to the over leveraged, they will walk away or consolidate.....it is the lenders and other investors that allowed and encouraged them to leaverage up that be hit the hardest.......paying wages with debt can only continue for a short period of time......an economy can't grow on fairy dust. as long as a few select people are coining it that happen to be in charge everything is hunky dory. No civil unrest, just a shrug of the shoulders and then a bit more lube applied. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted December 1, 2017 Share Posted December 1, 2017 1 hour ago, Freezer? Best place for it said: Unfortunately, Joe Public are too pussy-like for stringing people up (or whatever). It would focus a few minds that badly need it. One of the peculiar effects of letting 10 million foreigners into the UK is..... Quote Link to comment Share on other sites More sharing options...
Funn3r Posted December 1, 2017 Share Posted December 1, 2017 2 hours ago, neon tetra said: I love you for this...! (sorry, bit pissed) The mods should implement a Like button, I read so much great stuff but seems a bit cluttery to post a "well played" separate comment each time. Quote Link to comment Share on other sites More sharing options...
maverick73 Posted December 1, 2017 Share Posted December 1, 2017 1 hour ago, TheCountOfNowhere said: One of the peculiar effects of letting 10 million foreigners into the UK is..... What is classed as a foreigner? Quote Link to comment Share on other sites More sharing options...
Old Guy Posted December 1, 2017 Share Posted December 1, 2017 1 hour ago, Funn3r said: The mods should implement a Like button, I read so much great stuff but seems a bit cluttery to post a "well played" separate comment each time. +1 Quote Link to comment Share on other sites More sharing options...
Guest Posted December 1, 2017 Share Posted December 1, 2017 Quote Borrowing more could put the country at risk of suffering from a collapse similar to that experienced by Venezuela, he suggested. Mr Sharp, a member of the Bank’s Financial Stability Committee, spoke just days after Philip Hammond announced a £25 billion spending spree in the Budget and at a time when the Labour Party is advocating borrowing an extra £250 billion. The strangest thing about this is that a serving BOE official has publicly stated that the UK economy is on a path towards a Venezuelan class collapse - even an ex, former, BOE official comparing the current path of the UK economy to that of Venezuela would be a departure from past norms, but a current BOE official apparently stating that we appear to be on a path towards a comparable collapse is surely unprecedented? Quote Link to comment Share on other sites More sharing options...
dugsbody Posted December 1, 2017 Share Posted December 1, 2017 2 hours ago, maverick73 said: What is classed as a foreigner? Barry from Boston, moving to London, stealing my jobs. Quote Link to comment Share on other sites More sharing options...
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