Who is getting rich from our austerity measures !

[truthlogic]

why are you sure its double?

 

that would be 180 billion, more than what you posted earlier.

 

the owners of the bonds are getting rich out of the interest payments, why else would they loan the government money?

 

why do you think we pay interest on every pound printed?

 

Andy , that is complete bull you know that !

 

No one stepped in and said , " don't worry britania , we will bail you out "

 

Come on man !!!

 

Bonds are created by the once private BoE every time it prints money !

It can either keep the bonds it's self which it has done approximate 200 billion plus ,

Or the bonds are used to prop up things such as pensions etc

 

 

this has been the case ever since BoE was established to privatly fund British monarch wars ,

 

Bond Market will collapse , that is inevitable

 

as it is impossible to pay back our deficit as there is only enough money

In the economy to pay back the principle sum ,

 

Were does the money come from for the interest payments

!???

 

That's why we have always more or less had national debt !

 

 

 

[andyofborg]

 

whooohooooo youtube fruitloopery!

[truthlogic]

It's easy to put the blame for our current financial nightmare squarely on the shoulders of the government. The fact is that we can all do our bit to help the economy recover. Instead of hoarding our cash, we should be out there spending. There are billions of pounds out of circulation that should be put back in to give our economy much needed bouyancy.

 

The government has nothing to so with it , it's the central banks in western countries that pull the strings ,

 

Money should be created debt free By our western governments !

But it is not!

 

It is created by privatly owned banks such as the federal reserve with debt already attached too it ,

 

This debt in the form of interest can never be paid back as there is not enough money in the system to cover it,

 

So we get more money printed , more debt created , more interest ,

[manofstrad]

The government has nothing to so with it , it's the central banks in western countries that pull the strings ,

 

Money should be created debt free By our western governments !

But it is not!

 

It is created by privatly owned banks such as the federal reserve with debt already attached too it ,

 

This debt in the form of interest can never be paid back as there is not enough money in the system to cover it,

 

So we get more money printed , more debt created , more interest ,

 

I think you will find that that the government has everything to do with it.

[HeadingNorth]

So who is getting rich of out interest payments ?

 

People who own the bonds. Pensions and investment companies own quite a few; foreign countries own huge numbers of the things. Even some private individuals will own them. Government bonds are well known in the investment market as a very safe, but generally poorly-performing, investment, compared to most others.

[HeadingNorth]

Bonds are created by the once private BoE every time it prints money !

 

No they are not. Bonds are issued on government instruction, and the printing of notes is a completely separate process.

[andyofborg]

Bonds are created by the once private BoE every time it prints money !

 

no they aren't, aside from the fact that bonds are created and issued by the debt management office (an agency of the treasury), there is no link between the printing of bank notes and the printing of bonds

 

Or the bonds are used to prop up things such as pensions etc

 

they form part of many funds, the do form part of pension fund assets because they provide a guaranteed return for little or no risk.

 

Bond Market will collapse , that is inevitable

 

maybe it will, maybe it wont

 

however regardless of what happens we will continue to service the debt

 

Were does the money come from for the interest payments

!???

 

taxation

[HeadingNorth]

Interestingly, over 80% of our bonds are owned by UK companies and citizens (mostly insurance companies and pension funds).

 

I shall have to re-write my description. I thought that more than half were owned by foreign countries.

 

Perhaps the debt we owe to foreign countries comes in other forms.

[andyofborg]

I shall have to re-write my description. I thought that more than half were owned by foreign countries.

 

Perhaps the debt we owe to foreign countries comes in other forms.

 

i don't think sovereign debt can be anything other than bonds really

[andikay]

Is austerity the rich getting richer and the poor paying for it *( poor =is *every one else )*

 

Even before we were forced to bail out the banks we were broke , for every pound borrowed from the bank of England we must pay that back with interest ,

 

The bank of England prints the money then sells the bonds which are either brought by secret overseas buyers or which are purchased by the bank of England ,

 

We the people are then forced to pay back this huge amount of interest via our taxes or like now which by giving up out health care or other austerity measures , ( this method of paying back what is printed has remained the same since the BoE was created )

 

Why would the government need to pay interest back to the bank of England ?

 

All central banks work this way a prime example is how the privately owned and run Federal reserve works , *

 

 

Conservatively we owe the bank of England 900 billion*

The interest each year on that is * Approximately 160 billion

 

With all this austerity we can't even keep up with the interest payments never mind paying back what we loaned to bail out the banks , fight the wars and what was and is forked out to other nations .( correct terminology bribes )

 

 

http://www.debtbombshell.com/

 

*http://www.globalresearch.ca/index.php?context=va&aid=8518

 

People with an income in the top 10% pay half the UK tax, whilst the bottom 70% on the income scale receives services that would cost more than they pay in tax. Eg education, police, NHS

The poorest always get back much more than they contribute, I benefit from the wealth creators of this country and although sometime it ****** me off that they have so much more than me, I know that without them I would have less than I have.