Monday, January 7, 2013

Aaahhhhgggggg!!!!!!!!

The End Of Britain

Britain is about to be flattened by a tidal wave of debt. It doesn't matter if you vote Conservative, Liberal, Labour, UKIP – or for no party at all. The facts are the facts ...

Posted by greenmind @ 11:54 PM (10725 views)
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20 thoughts on “Aaahhhhgggggg!!!!!!!!

  • flatten away.

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  • bubba sparks says:

    From the article:- “Our total debts stand at more than FIVE TIMES what our entire economy is worth.”

    Total debt around 1 trillion. GDP around 2.4 trillion. Above statement therefore rather confusing and maybe the facts are not entirely facts just sensationalised statistics?…seems like old news, we’re all doomed so subscribe to Money week and buy gold. Interesting read though, thanks for posting.

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  • blah blah blah blah blah the world is going to end.

    Now sign up for our paid news letter. If you don’t, you’re going to hell.

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  • Not a single inflation adjusted graph or statistic in sight on that article, ALL nominal cash assesments, which makes it owrse than useless, if not totally misleading.

    Its bad but not as bad as they make out.

    Not a single reference to the ability to print our own money and therefore keep intereste rates artificially depressed.

    We have levers to stop it being as bad as they say!

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  • Grossly misleading scaremongering for the following two reasons.
    1. Use of nominal time series. The price level has increased by a factor of 19 between 1960 and 2009 (according to the Bank of England’s “three centuries of data” spreadsheet that you can google and download. So if real public debt had remained what it was in 1960 it would be £6650 bn now instead of the £700 bn showing on their first graph. Fact: national debt has DECREASED since the 1960s, not increased.
    2. Lumping the UK in with Spain, Italy and Greece. None of these countries have their own currency any more, so they are dependent on the ECB for servicing their national debts. This makes them TOTALLY UNLIKE the UK as monetary systems.
    N

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  • What folk forget is that Sterling is presently 4.1% of world FOREX reserves.

    So I’m afraid that they could stretch this out a bit longer.


    Incidentally, looks like they are spending another few million today on chemtrails, looking at the sky.

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  • mark wadsworth says:

    NickB nails it.

    Yes, all this deficit spending is a complete waste and theft and so on, but we’ll probably survive it.

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  • Tin hats? I am not sure it is THE END, but further deflation ahead, IMO.

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  • MarkW,
    In the Michael Hudson articles posted in the last few days, we also see that periods of government surplusses tend to coincide with recessions:

    “The federal government has achieved fiscal balance (even surpluses) in just seven periods since 1776, bringing in enough revenue to cover all of its spending during 1817-21, 1823-36, 1852-57, 1867-73, 1880-93, 1920-30 and 1998-2001. We have also experienced six depressions. They began in 1819, 1837, 1857, 1873, 1893 and 1929.
    Do you see the correlation? The one exception to this pattern occurred in the late 1990s and early 2000s, when the dot-com and housing bubbles fueled a consumption binge that delayed the harmful effects of the Clinton surpluses until the Great Recession of 2007-09.”

    He also analyses the effects of different kinds of government deficit spending, some toxic, some benign.

    http://www.counterpunch.org/2013/01/02/why-the-fiscal-squeeze-imposes-needless-austerity/

    N

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  • Downwardtrend says:

    Haven’t Moneyweek realised that the whole deficit/austerity rhetoric is just a cover for an out & out attack on the welfare state? Yes, borrowing is going up, BUT services to people are definitely going down.

    As Chomsky says, the IMF advises other countries to accept austerity measures to deliberately push their economies into recession, allowing western investors to go in & buy up everything cheap, it’s just an extension of the old free trade rhetoric that was used to exacerbate mass famine in India & elsewhere (forcibly export their food during famine & tell them it’s character building to fend for themselves).

    The problem is, some times Western leaders buy into their own b*lls**t & adopt the measures themselves, hence you have the IMF warning the UK that it’s austerity is causing recession. Of course, Cameron is using it as a veil to attack welfare & probably knows this.

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  • Ahem (wipes egg off face)
    my back of the envelope was also out by a factor of 10! But it still remains the case that national debt is roughly what it was in 1960:
    eyeballing the chart, MoneyWk say bn£35 in 1960. * 19 = bn£665 compared to bn £700 in 2010. An increase of a staggering 5%!
    N

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  • mark wadsworth says:

    NickB, you weren’t out. Broadly speaking, UK govt debt has wavered between 40% and 200% of GDP since time immemorial, end of.

    “We have also experienced six depressions. They began in 1819, 1837, 1857, 1873, 1893 and 1929.”

    That’s yer 18-year cycle right there (one missing in 1900s). They were interrupted by WW2 but have continued apace in the UK.

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  • Clearly, this article has more to do with scaring up a lot of new year new subscriptions to Moneyweek than anything else. There is a lot of emphasis on Moneyweek predictions that came true (or, at least, as they present the “facts” and figures, came true) but no mention of what they got wrong (they have, for example, been predicting a HPC since, at least, early 2008 and we know that nothing resembling that label has happened.

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  • What about the elephant in the room ?

    In the past 30 years almost all occupational pensions schemes have been closed .

    The money which would have gone into them and which would not have been available to puff accommodation prices has already been spent on mortgage interest and rent .

    Essentially the majority of the populations pensions have been brought forward and already spent .

    This is an expense which did not exist to the same level in 1960 . Essentially the state is going to have to provide for people for the last on average 20 years of their life .

    Assuming the state will have to support entirely an average of 10 million at a cost of approximately £14,000 a year I make this £140 billion per year , of which only half is accounted for by the proposed £7,000 (state pension) which in turn is unfunded .

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  • stillthinking says:

    Libertas, this is all very topical, but isn’t the Sterling forex holdings because of the SDR basket? Which gets adjusted Jan 2015? Or does every despot and corrupt government official crave a UK university education for their kids?

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  • A bit off-topic, but nevertheless:
    stillthinking said…:
    > UK university education for their kids?
    A lot of smart people go in favour of Germany or Sweden nowadays where you can study for free (actually they pay you if you’re good) and where they still try to teach and not make profits. It’s all about UK’s reputation and an enormous inertia it carries – as soon as the reality finally catches up with the perception most of UK universities will have a lot of vacancies. Btw, look at UCAS application numbers for the past two years and you will see what I am talking about.

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  • This piece, while well written and researched comes across as a frightener to get you to buy their advice on how to survive the end of the world …. the whole tone is very hard sell, very snake oil merchant … would make Grant Shapps blush! Big plug at the end for you to buy their Wealth Preservation Report …hmmm. MW is a sharp publication but it can be a bit skewed at times … their view of property for example is relentlessly negative, and you have to ask why an investment publication would argue that there’s never a good time to buy property.

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  • stillthinking says:

    Stepan, That wasn’t true in Guildford last year, aka Surrey University. Getting on a bus that went through the university was like a quick trip to Beijing. I think a lot of wealthy foreign parents want their children to go to a UK university as safe, where the USA is not.

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  • Eriksonerikson says:

    The best advert for magazine subscription I have seen! No need to mention detail like inflation distorting all the figures and nullifying the conclusion. Fear is the key. Congratulations Moneyweek! (Overdoes the get your free etc)but brilliant marketing!

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