ElasticMan Posted October 28, 2011 Share Posted October 28, 2011 When was the last time we as a nation did not have debt ? And if it was as long as 150 years ago , is this the way to really run your country ? Always in the red ? Simple answer is that yes, its a normal state of affairs to run a national debt, and there are no plans to pay it off. See here for some details http://falseeconomy.org.uk/cure/how-big-is-the-problem Link to comment Share on other sites More sharing options...
Rupert_Baehr Posted October 28, 2011 Share Posted October 28, 2011 I (and I'm not a country) go into debt when it suits me. 'BEING IN DEBT# is not a problem ... if you can afford to pay the debt off. I owe The Home Depot (sort of builders' merchant) about 8000 quid, but if I pay it off by December 2102, I don't pay them any interest - I could pay them today ... but the money does better in my account than it does in theirs. Link to comment Share on other sites More sharing options...
Mecky Posted October 28, 2011 Share Posted October 28, 2011 The whole economy is built on debt Link to comment Share on other sites More sharing options...
*Belle* Posted October 28, 2011 Share Posted October 28, 2011 I (and I'm not a country) go into debt when it suits me. 'BEING IN DEBT# is not a problem ... if you can afford to pay the debt off. I owe The Home Depot (sort of builders' merchant) about 8000 quid, but if I pay it off by December 2102, I don't pay them any interest - I could pay them today ... but the money does better in my account than it does in theirs. And to be realistic...in 91 years time it will probably be someone elses problem Link to comment Share on other sites More sharing options...
LeMaquis Posted October 28, 2011 Share Posted October 28, 2011 Debt's alright as long as the repayments can be met and the money is used for something useful. It was the burst in the property boom in the US 3 years ago that led to the current global downturn. Repayments couldn't be met. In this country people were borrowing money to buy any old rubbish they didn't need and couldn't afford. Debt is needed to start businesses and buy homes that are affordable but when it's used to speculate endlessly or buy something you can't afford and don't need that's when the world economy goes pop. I note the Chinese are now buying up Europe in the same way they've bought up Africa and the US. Communism is rescuing capitalism from itself. Marx will be smiling. Link to comment Share on other sites More sharing options...
HeadingNorth Posted October 28, 2011 Share Posted October 28, 2011 I note the Chinese are now buying up Europe in the same way they've bought up Africa and the US. Communism is rescuing capitalism from itself. Marx will be smiling. China hasn't been a Communist country for a long time. Their economy is even more free-market than ours - provided you're Chinese, of course. Link to comment Share on other sites More sharing options...
Alien52 Posted October 28, 2011 Share Posted October 28, 2011 Looking at the first 20 posts I am amazed at what goes on when I am asleep ! Link to comment Share on other sites More sharing options...
HeadingNorth Posted October 28, 2011 Share Posted October 28, 2011 Given what I read in here by so many posters, you're wasting your breath talking sense. I don't think there's much hope of changing anyone's opinion on what the political solutions should be, but it's worth trying to help someone understand what the issue actually is. Anyone who shows any sort of sign of interest in politics should be encouraged to understand the problems a country faces. Link to comment Share on other sites More sharing options...
ampersand Posted October 28, 2011 Share Posted October 28, 2011 It isn't being in debt which is the problem as such, it's the ability or otherwise to repay it, the cost of borrowing it, the level of your income and the value of your assets If the amount you owe is going up at the same time that your income is coming down it will not be long before you have a problem If the amount you owe is stable or reducing and/or your income is increasing at a faster rate it is less of a problem (as long as you use some of the increased income to cover the debt repayments rather than going off to Barbados for a holiday - or whatever the equivalent may be for a country) It also depends on the repayment term - if you have to find the money tomorrow it could be a lot more serious than if you have another twenty years to repay it Link to comment Share on other sites More sharing options...
Deltic Posted October 28, 2011 Share Posted October 28, 2011 This data shows we have been in debt as a country for the last 111 years. http://www.ukpublicspending.co.uk/include/uk_debt_100_p.png Although until 2009 our recent debt was very low compared to most of the 20th Century. Of course when you have a fractional reserve banking system how you define debt becomes considerably complicated. If banks are lending out as much as 10 times what they hold what is the real level of debt? Link to comment Share on other sites More sharing options...
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