Wednesday, July 27, 2011

One for those on HPC who think UK debt isn’t that bad…..

UK public sector debt estimated at £135,000 per household

''Mr Morgan puts the public sector debt – around £900bn or 60pc of GDP in official figures – close to £3.6 trillion when the effects of bailing out the banks, public sector pension commitments and PFI contracts are included. That represents some £135,000 debt for every household.''

Posted by hpwatcher @ 10:24 AM (1042 views)
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5 thoughts on “One for those on HPC who think UK debt isn’t that bad…..

  • general congreve says:

    What Mr Morgan fails to understand is that in the absence of phenomenal economic growth appearing out of nowhere, we have two very potent weapons in our fight against this debt, the zero key on the computer keyboard and our time-honoured friend, the printing press.

    Therefore, there is no need for anyone to concern themselves with this seemingly alarming news.

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  • The problem won’t be dealt with through GDP growth alone – it will be dealt with by a combination of very modest GDP growth, making the public sector work longer for smaller pensions, screwing down the PFI contracts, wasting less, pressing those who can work, but prefer to sit on their arses, to get up and do something productive; and above all, inflating away the debt liabilities.

    We’ll get there without armageddon I think, but not without slaughtering a few sacred cows along the way.


    There seems to be a very serious motivation issue with the under 30’s at present, and it’s not entirely their fault.

    Why not have a voluntary national service scheme – military basic training for 6 months followed by 18 months of VSO work. Then, as a reward for those who de-mob with a clean record, give them a free building plot on surplus MoD land that they can either sell or build their own home on..

    The basic training should be a strict, gadget-free, drug-free, and fat-busting regime, where those who fail go round again. Once they are fit, disciplined team players, they get the experiance of installing the most basic technologies, such as clean water systems, in the world’s poorest areas, and gain an appreciation of their good fortune to live in a prosperous country.

    Once their tour is up, they can then enter the workplace as someone who has proven their team-player credentials, and set about building their own home.

    ..what’s not to like?

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  • In Britain, public debt is almost 60% of GDP; in France 75%, Germany 85%, Italy 120%, Greece 140% and Japan 205%. So on that basis, public debt is not that bad in Britain.

    The elephant in the room, and what policymakers are ignoring is private sector debt in Britain is gigantic. Personal debt alone is around 100% of GDP. That is why people are not shopping – they are paying down debt. People are also a: less willing to pay exorbitant prices for houses; and b: (more importantly) are unable to.

    Furthermore, low interest rates are allowing homeowners to ignore the present market value of their home (around 30% below sale price indices). They refuse to believe that 2007 prices are gone for good, so refuse to sell (volumes have crashed by more than 50% – mortgage-based purchases are down 70%). That means houses are not selling, and the furniture industry has seen a collapse in orders from FTBs, companies (Moben) are going bust.

    The major problem is not government dent; it is private sector debt. And unless the government and BoE can force inflation higher for a prolonged period, the economy will continue to stagnate.

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  • i have noticed how much working people have cut back when shopping, however the none working sit on a$$ lazy scroungers are still spending like there is no tomorrow

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  • While you are all having a go at “benefits scroungers” it is probably worth pointing out that if Barclys had paid the taxes it was due to, that it would have covered over half of what is given out in jobseeks allowance. Lets not forget who is really stealing our taxes.

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