The UK national debt clock

[idiot]

UK National Debt - how Britain owes over £900 billion

 

It's a truly frightening figure. Why is the world's sixth richest country so deeply in debt?

 

Every year the UK runs a large budget deficit. The Government spends more money than it can tax, so we plug the gap by selling bonds to investors at home and abroad. These bonds - known as gilts - have to be repaid in full, with interest. Added together, our unpaid loans make up the UK's national debt.

 

Right now, that debt is growing violently. The Government forecasts it will soar to an eye-watering £1.1 trillion by 2011. To put that in perspective, the UK went bust in 1976 running a budget deficit of 6% of GDP. In 2010 that deficit is going to top 12%.

 

£900 billion

[studentbob]

 

 

 

£900 billion

 

Do you know who we are in debt to?

[emma royd]

Do you know who we are in debt to?

 

Is it the Student Loan Company?

[studentbob]

Is it the Student Loan Company?

 

Nice one.

 

The reason I asked was because I found this, and wondered if any of the economists on here could enlighten us as to how exactly it works.

 

http://www.visualeconomics.com/gdp-vs-national-debt-by-country/

[barny_100]

Nice one.

 

The reason I asked was because I found this, and wondered if any of the economists on here could enlighten us as to how exactly it works.

 

http://www.visualeconomics.com/gdp-vs-national-debt-by-country/

 

Pretty much says in the OP: "so we plug the gap by selling bonds to investors at home and abroad." Those investors can be anything from other countries, banks both central and private and individuals even.

 

You can even buy "debt" here direct: http://www.dmo.gov.uk/index.aspx?page=Gilts/Buysell

 

Although far more often private investors buy Gilt funds that buy various types/lengths of debt and provide an income to the owners of fund units from the interest they get from the governments they buy the debt off.

 

In a nutshell anyway...

[truconstruct]

Nice one.

 

The reason I asked was because I found this, and wondered if any of the economists on here could enlighten us as to how exactly it works.

 

http://www.visualeconomics.com/gdp-vs-national-debt-by-country/

 

Its far too complex to explain to lay people, you just won't understand it.

[studentbob]

Pretty much says in the OP: "so we plug the gap by selling bonds to investors at home and abroad." Those investors can be anything from other countries, banks both central and private and individuals even.

 

You can even buy "debt" here direct: http://www.dmo.gov.uk/index.aspx?page=Gilts/Buysell

 

Although far more often private investors buy Gilt funds that buy various types/lengths of debt and provide an income to the owners of fund units from the interest they get from the governments they buy the debt off.

 

In a nutshell anyway...

 

Thanks for that barny_100. Very well put.

[studentbob]

Its far too complex to explain to lay people, you just won't understand it.

 

Thanks for that truconstruct. And I thought you were just a one line pony.

[Longcol]

Its far too complex to explain to lay people, you just won't understand it.

 

Go on then. Try us

[upinwath]

http://www.debtbombshell.com/britains-budget-deficit.htm

In 1997 Labour inherited a budget that was actually in balance. After a painful and turbulent decade under the Tories, the public finances had finally been brought under control. But after four years in office Gordon Brown took out the country's credit card and let rip. By the end of 2009-10 our annual deficit had ballooned to £170.8 billion.

 

Vote Labour to shag the country big style.