Uk Economic Meltdown Imminent

[SundanceSquid]

Check out the uk level of debt compared to the rest of the world

and then use you vote a bit more wisely in future please

Labour miracle

Rank Order - Debt - external

Rank Debt - external

1

World $ 44,620,000,000,000 2004 est.

2

United States $ 10,040,000,000,000 30 June 2006 est.

3

United Kingdom $ 8,280,000,000,000 30 June 2006

4

Germany $ 3,904,000,000,000 30 June 2006

5

France $ 3,461,000,000,000 30 June 2006

[dnd]

IIRC total income tax doesn't even cover the interest on the debt accrued by Gordie over the past 10 years

We're basically working to pay interest on this debt - but that was the idea behind Fiat money in the first place....

Edited January 27, 2007 by dnd

[HovelinHove]

That is fooking scary.

[Realistbear]

Last time I saw some stats that indicated that we had moved ahead of the US with per capita debt at around $40k compared with the US per capita of $37k.

The other bit of news you won't find on the BBC is the fact that we are a kiss away from 10 million unemployed:

http://www.statistics.gov.uk/CCI/nugget.asp?ID=12

The unemployment rate was 5.5 per cent, down 0.1 on the quarter but up 0.4 over the year. The number of unemployed people fell by 29,000 over the quarter but increased by 139,000 over the year, to reach

1.67 million

.

The claimant count was 943,100 in December 2006, down 5,500 on the previous month but up 35,200 on the year.

The inactivity rate for people of working age was 21 per cent for the three months ending in November 2006, up 0.2 on the quarter but down 0.4 over the year. The number of economically inactive people of working age increased by 74,000 over the quarter to reach

7.85 million.

1.67 + 7.85 = 9.52 million

Add a few million unemployed immigrants on the sausage etc and we may well have the highest unemployment rate in the Western World. Of course, Gordon's miracle economy based on debt is keeping it held together....for now.

Edited January 27, 2007 by Realistbear

[DoctorJ]

So what is the best way to protect yourself in an 'economic meltdown'. It sounds (from this and other threads) like there will be no-where to hide. elp!

[Fancypants]

So what is the best way to protect yourself in an 'economic meltdown'. It sounds (from this and other threads) like there will be no-where to hide. elp!

debt relief for the third world? Funny how we often see figures bandied about showing how shocking their debt problems are - but never any mention of ours, which are a whole different order of magnitude!

[Realistbear]

So what is the best way to protect yourself in an 'economic meltdown'. It sounds (from this and other threads) like there will be no-where to hide. elp!

Warren Buffett suggested utility stocks as you always have to turn on the lights. I bought into Fidelity's Utilties Fund earlier in 2006 and it has outperformed all my diversified international funds which are my form of currency hedge!

IMO, the things MOST at risk in the coming downturn: sterling, BTL-type properties, mortage backed securities, long bonds, and most of the fiat metals.

http://quicktake.morningstar.com/fundnet/S...mp;Symbol=FIUIX

Edited January 27, 2007 by Realistbear

[LargelyIgnorant]

The Current Account Balance isn't too smart, either:

https://www.cia.gov/cia/publications/factbo...r/2187rank.html

1 China $ 179,100,000,000 2006 est.

2 Japan $ 174,400,000,000 2006 est.

3 Germany $ 134,800,000,000 2006 est.

4 Russia $ 105,300,000,000 2006 est.

5 Saudi Arabia $ 103,800,000,000 2006 est.

6 Norway $ 63,330,000,000 2006 est.

7 Switzerland $ 50,440,000,000 2006 est.

8 Netherlands $ 50,170,000,000 2006 est.

9 Kuwait $ 40,750,000,000 2006 est.

10 Singapore $ 35,580,000,000

....

150 Hungary $ -8,392,000,000 2006 est.

151 Ireland $ -9,450,000,000 2006 est.

152 Romania $ -12,450,000,000 2006 est.

153 South Africa $ -12,690,000,000 2006 est.

154 Portugal $ -16,750,000,000 2006 est.

155 Greece $ -21,370,000,000 2006 est.

156 Italy $ -23,730,000,000 2006 est.

157 Turkey $ -25,990,000,000 2006 est.

158 India $ -26,400,000,000 2006 est.

159 France $ -35,360,000,000 2006 est.

160 Australia $ -41,620,000,000 2006 est.

161 United Kingdom $ -57,680,000,000 2006 est.

162 Spain $ -98,600,000,000 2006 est.

163 United States $ -862,300,000,000

[DoctorJ]

The Current Account Balance isn't too smart, either:

https://www.cia.gov/cia/publications/factbo...r/2187rank.html

1 China $ 179,100,000,000 2006 est.

2 Japan $ 174,400,000,000 2006 est.

3 Germany $ 134,800,000,000 2006 est.

4 Russia $ 105,300,000,000 2006 est.

5 Saudi Arabia $ 103,800,000,000 2006 est.

6 Norway $ 63,330,000,000 2006 est.

7 Switzerland $ 50,440,000,000 2006 est.

8 Netherlands $ 50,170,000,000 2006 est.

9 Kuwait $ 40,750,000,000 2006 est.

10 Singapore $ 35,580,000,000

....

150 Hungary $ -8,392,000,000 2006 est.

151 Ireland $ -9,450,000,000 2006 est.

152 Romania $ -12,450,000,000 2006 est.

153 South Africa $ -12,690,000,000 2006 est.

154 Portugal $ -16,750,000,000 2006 est.

155 Greece $ -21,370,000,000 2006 est.

156 Italy $ -23,730,000,000 2006 est.

157 Turkey $ -25,990,000,000 2006 est.

158 India $ -26,400,000,000 2006 est.

159 France $ -35,360,000,000 2006 est.

160 Australia $ -41,620,000,000 2006 est.

161 United Kingdom $ -57,680,000,000 2006 est.

162 Spain $ -98,600,000,000 2006 est.

163 United States $ -862,300,000,000

My God! how did we get into this mess?

[Fancypants]

My God! how did we get into this mess?

[Realistbear]

161 United Kingdom $ -57,680,000,000 2006 est.

162 Spain $ -98,600,000,000 2006 est.

163 United States $ -862,300,000,000

Factor in the difference in population sizes and we can see that Gordon's miracle is actually a financial nightmare. How on earth could so many people be misled for so long?

The promise of HPI and endless MEW was too attractive to stay away from.

[Realistbear]

Gordon sitteth on the right hand of his master.

[Guest Shedfish]

http://www.mises.org/money/4s7.asp

[Pluto]

My God! how did we get into this mess?

Got into this mess by being in the Anglo Saxon club. As Livingstone told the BBC recently: "manufacturing has gone from the UK and it will never come back, we should concentrate on being on the cutting edge of new industries".

This fool is typical of politicians these days. They keep parroting on how we need to move on not be concerned about manufacturing as we are in a new economy - a service orientated economy - this economy will lead us into the future.

The fact of the matter is London's financial center is only 15% of UK's GDP and the deregulation and favourable tax incententives to these "city snakes" is at the expense of the general population in the UK. The UK has been gutted from sea to sea of its ability to manufacture its own goods and feed its own people. We are now at the mercy of these financial banks by way of credit, interest and exchange rates. A lower pound will send the price of food, clothing, energy and everything else spiraling out of control. While the snakes in the city get to keep their own money and live offshore (result of UK's generous tax laws) the UK citizens standard of living is going down faster and faster. They are being taxed to hilt while Livingstone and Brown makes taxes and laws more and more appealing to city banks.

The worlds 97th sexiest man, Brown, has been spending our children's money without any regard for the future. HPI is not the result of some boom as government propaganda would have you believe, but of a very serious problem that has just now surfaced in the general economy - inflation. This inflation is spiraling out of control. The dynamic duo and their poodle, Blair, Brown and King have all said this is temporary and inflation is coming down later this year. Every economic statistic that I am reading tells me this is false, and infact, CPI and RPI are both set to climb over the coming months, as the real kicker to inflation has not even started yet, and that is wage raises. The UK worket has begun to see through dilution of their earnings.

Brown's only hope is to keep printing money faster and faster, they cannot stop. Don't be surprised to here King say something along the lines of what Bernanke said a couple of weeks ago in the US: "the cpi is over stating inflation". That is code for we need to adjust the target of inflation up or look at cpi to see if we can juggle more goods and services in it to make it come down.

Bernanke and King both want to reduce IR's but inflation is getting harder and harder to hide as the money sloshes around from asset class to asset class and also in everyday purchases.

Yes my freinds gold's going higher - much higher.

Edited January 27, 2007 by Pluto

[kenclarkesshoes]

160 Australia $ -41,620,000,000 2006 est.

161 United Kingdom $ -57,680,000,000 2006 est.

162 Spain $ -98,600,000,000 2006 est.

163 United States $ -862,300,000,000

interesting to note that the bottom 4 were the keenest to go to war with Iraq.

there has to be a statistically significant correlation there.

simply has to be.

the more bankrupt you are the more you rely on war to get you out of the sh.it

[SeenItAllBefore]

It’s interesting that today’s interest payments on £1.3 trillion in consumer debt at 5.25% are pretty much twice the 2003 payments on £1 trillion at 3.5% - an extra £35 billion to find every year. Add on the rises in council tax and the doubling of domestic fuel bills – an extra £500 annually for the average household - and the total increase in yearly basic costs must be in the region of £50 billion. That’s got to have swallowed up most, if not all, of the rise in disposable income in that period.

To me this seems a pretty odd backdrop to the continuing strength in house prices and the consumer economy but these are odd times aren’t they.

[Pluto]

interesting to note that the bottom 4 were the keenest to go to war with Iraq.

there has to be a statistically significant correlation there.

simply has to be.

the more bankrupt you are the more you rely on war to get you out of the sh.it

Anglo countrires seem to be always in the state of war and fear. While the population are in fear new laws are easier to enact.

[Buddleia]

Someone explain these figures. The CIA links doesn't work.

Is this public borrowing? Who does Brown borrow the money from? And where do they get the money from?

[Luminist]

In my personal opinion, these numbers are the symptoms of impending economic death. To digress slightly, there are two basic skills that a human possesses, the ability to help others and the ability to help oneself. Any system which rewards the former more than the latter will lead to economic prosperity. The corollary is that any system which emphasises the latter will flourish for a while under the right circumstances, but is ultimately doomed to collapse. The fiat money system is perfect for encouraging self-aggrandizement at the cost of the environment and societal stability. IMHO

Best,

L

[CrashedOutAndBurned]

[Pluto]

In my personal opinion, these numbers are the symptoms of impending economic death. To digress slightly, there are two basic skills that a human possesses, the ability to help others and the ability to help oneself. Any system which rewards the former more than the latter will lead to economic prosperity. The corollary is that any system which emphasises the latter will flourish for a while under the right circumstances, but is ultimately doomed to collapse. The fiat money system is perfect for encouraging self-aggrandizement at the cost of the environment and societal stability. IMHO

Best,

L

Economic death can be avoided, as history taught us, with successful wars. If the wars end up being a failure then the economic problems get amplified. There are wars in recent history that prove this point. For example, Vietnam.

[jonpo]

no country has the gold to go to war without debt. bankers love wars. look at how the Rothchilds made their fortuenes wellington an napoleon were just patseys.

how else is the iraq war financed ? sino-treasuries...

AlQadea and the whitehouse are working for the same cause........ bankrupcy and global recession... and winning.

[Luminist]

Economic death can be avoided, as history taught us, with successful wars. If the wars end up being a failure then the economic problems get amplified. There are wars in recent history that prove this point. For example, Vietnam.

Yes, I completely agree. Also, wars are just another way of annexing external capital. If the war is for capturing natural resources, which I think is the reason behind all of the biggest wars in history, then it is even more effective at delaying the inevitable. Continuing my previous post, if the individual does not want to help others, then to survive he must procure some way of meeting his own needs. This way has been cheap energy in the form of oil. They say that we each in the West have at our disposal many "invisible energy slaves" to do our bidding such as washing our dishes or getting us from place to place. Once these slaves disappear, the current economic and societal system cannot exist for the reasons discussed. People will have to start to learn how to make real contributions to other people's lives again

Best,

L

Edited January 27, 2007 by Luminist

[dnd]

OMG - that cartoon version of the photo is SOOO true...

[jonpo]

Economic death can be avoided, as history taught us, with successful wars. If the wars end up being a failure then the economic problems get amplified. There are wars in recent history that prove this point. For example, Vietnam.

key term is successful.

I want to do a BF2 computer game mod where the american forces have far superior wepons versus insurgents who have only AK47s and IEDs. the mission of the insurgents is to cause the US a massive dollar loss by wounding the US soldiers and disabling their tanks/APCs/Humvees etc. where a realistic dollar amount is assigned to all damage caused until the US forces are bankrupted the mission of the US is to wipe out the insurgents so the oil feilds can be secured in order to pay their wages but every civilan killed has a chance to spawn into new insurgents. The game could have various levels which accuratly recreate the historical battles of the war on teror. e.g the bombing of the USS cole etc maybe even some controversial real life news footage interspresed with the action to highlight the unproductive misappropriation of capital that we have squadered on the silly war.