Wednesday, May 21, 2008
Time to re-write the economic cycle and move the goalposts on debt to GDP ratio
UK debt 'to break' official rule
The decision to nationalise Northern Rock has pushed UK debt levels above the government's official ceiling of 40%, preliminary figures suggest. Bailing out the lender pushed public net debt to 43.1% of gross domestic product (GDP) in March, suggests the Office for National Statistics (ONS).
Posted by jack c @ 05:24 PM (988 views)
11 thoughts on “Time to re-write the economic cycle and move the goalposts on debt to GDP ratio”
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japanese uncle says:
One step farther away from joining euro. Congratulations!
denzil says:
Gordon Brown, when interviewed by John Humphrys stated on air that they (Labour) had not broken their Golden rule with respect of debt to GDP.
hpwatcher says:
”Gordon Brown, when interviewed by John Humphrys stated on air that they (Labour) had not broken their Golden rule with respect of debt to GDP.”
In his own [twisted] mind, he probably hasn’t.
jack c says:
What’s the betting that Darling/Brown maintain that by excluding the cost of Northern Rock, the net debt was 36.7% in March and because NR is a “one off exceptional item” the Golden Rule hasnt really been broken and we have the fastest growing economy of the G7, low inflation, high employment, the longest period of sustained economic growth in UK economic history etc…. etc…. etc….
plato says:
Exactly jack c…………… Isn’t it nice to make the rules of your own game ?
stillthinking says:
There can’t be much interest in the money being paid back at the moment. 3% of credit expansion as expressed in terms of GDP suddenly disappears.
jonb says:
Of course the £22bn the government got from selling 3G licences to mobile phone companies was a “one off exceptional item”, but I don’t remember that being excluded from the accounts.
tyrellcorporation says:
Jonb, I’ll have you know that money was wisely hose-piped into a large bottomless pit called the NHS. Hurrah!
Mytimeisnigh says:
I’ve known that his golden rule was horse sh*t for years.
Landofconfusion says:
> 2. denzil said…
>
> Gordon Brown, when interviewed by John Humphrys stated on air that they (Labour) had not broken their Golden rule with respect of debt to GDP.
Yeah, also we have low inflation and ID cards will help fight terrorism.
Andrew says:
joining the euro will make my job easier. bring it on!!