UK austerity policies to run for longer

[Mecky]

We're not even technically in recession at all, but don't let mere facts put you off from yet another ridiculous rant.

 

 

Posted from Sheffieldforum.co.uk App for Android

 

I think you'll find we are as the next figures will suggest.

[biotechpete]

The Trades Unions Congress (TUC), warns that the poorest families in the UK will face hidden cuts of over 30 percent of their annual income by 2017. Do not forget the proposals to extend the UK's austerity plans beyond 2016-17.

 

People on this site melieve the mainstream medais claim business is picking up, things look bright, but if things go pear shaped we will of course blame it on Europe, as we have tried the Royal Wedding, and Snow, so its just not the governments fault. Maybe its because women bishops upset god?

 

Do not forget pension reforms. reforms is a word meaning cuts, but you knew that.

 

 

http://www.ft.com/cms/s/0/426b42bc-1...#axzz2DHI9aJ4N

 

Selling hope, the art of propaganda to guild the truth is a popular way to lie. Who is interested in the truth, evidence when opinion is so interesting?

 

Don't forget the plans to extend cuts beyond this parliament were conceived in Labours cuts plan set out by darling.

 

The only people guilty of using propaganda to guild the truth is Milliballs. We ALL know full well that their cuts plans were even deeper in some places, like in the NHS. Their plans to cut their deficit more slowly would have seen us all paying more for longer. To suggest that things would be different under Labour is a complete fallacy.

 

 

Posted from Sheffieldforum.co.uk App for Android

[Mecky]

Don't forget the plans to extend cuts beyond this parliament were conceived in Labours cuts plan set out by darling.

 

The only people guilty of using propaganda to guild the truth is Milliballs. We ALL know full well that their cuts plans were even deeper in some places, like in the NHS. Their plans to cut their deficit more slowly would have seen us all paying more for longer. To suggest that things would be different under Labour is a complete fallacy.

 

 

Posted from Sheffieldforum.co.uk App for Android

 

So why did people vote for the bullying tories?

[Mecky]

Looks like the nasty people finally managed to untangle themselves from their duvets then.

[biotechpete]

Quote:

 

Originally Posted by biotechpete

 

We're not even technically in recession at all, but don't let mere facts put you off from yet another ridiculous rant.

 

 

Posted from Sheffieldforum.co.uk App for Android

 

I think you'll find we are as the next figures will suggest.

 

Yet again the facts defeat you. But I think you know why.

 

 

Posted from Sheffieldforum.co.uk App for Android

[I1L2T3]

I wonder where the nasty people are today? Can't see it being too long before they get here and demonstrate why nobody likes them (including themselves).

 

Their shift hasn't started yet.

[Mecky]

Yet again the facts defeat you. But I think you know why.

 

 

Posted from Sheffieldforum.co.uk App for Android

 

But I'm sure you're going to tell us why?

[I1L2T3]

We're not even technically in recession at all, but don't let mere facts put you off from yet another ridiculous rant.

 

 

Posted from Sheffieldforum.co.uk App for Android

 

It's not a technical recession at the moment, but other economic indicators suggest we are in very serious trouble and that we have a very stormy ride ahead.

[Vague_Boy]

The Trades Unions Congress (TUC), warns that the poorest families in the UK will face hidden cuts of over 30 percent of their annual income by 2017. Do not forget the proposals to extend the UK's austerity plans beyond 2016-17.

 

Unfortunately, we just keep on spending and getting further into debt.

UK Projected Public Debt 1990-2015

 

Note how it started to spike around 2000 and is set to keep on spiking.

 

 

 

There may come a time when you look back at this time of "austerity" with wistful nostalgia.

 

 

Money Week has a somewhat doom laden message:

 

This looming crisis is related to the financial crisis of 2008... but it will be infinitely more dangerous. As I’ll explain, there is an unsolvable problem at the heart of our financial system. One that dates back over a hundred years.

 

In that time this problem has eaten away more than £10 trillion in public funds. It has been at the root of practically every major political argument in this country, and it affects every aspect of the way we live our lives.

 

Twenty-five Prime Ministers – from both political parties – have come and gone without ever having come close to solving it.

 

The outcome of this problem is inevitable… and the recession, joblessness and instability you see right now is only the first stage of it. Many people think the slump we’re in now is as bad as it will get.

 

But the truth is, it’s only the start.

 

In fact, you will certainly see the consequences of this deep-rooted problem unfold across the cities, towns and villages of Britain. No one will escape the fallout.

 

In all recorded history, no country has ever recovered from the financial position we find ourselves in today. No government has ever been able to reverse this trend. No emergency action has ever come close to a solution.

 

This inescapable problem has only ever had one outcome: total financial collapse.

LINK

 

 

 

Compared to the size of our economy, Britain is now one of the most heavily indebted countries in the Western world. That’s official. Our total debts stand at more than FIVE TIMES what our entire economy is worth.

 

Proportionally, that’s more debt than Italy… Portugal… Spain… and almost twice as much debt as Greece. Those are four countries already in the throes of financial crisis. We’re the odd one out because we haven’t collapsed – yet. But things can’t stay that way for long.

 

However, unlike Italy, Portugal, Spain and Greece, we can turn on the printing presses.

 

This debases the purchasing power of our currency and makes everything more expensive, but it's a useful way of "kicking the can" down the road.

 

But of course, the debt "doesn't matter" and we must "spend our way to prosperity".

 

Let's not forget, all that "prosperity" we had in the noughties proved to be so resilient and long-lasting didn't it?

 

(I think you'll find that the debt we racked up during that period will prove to be far more enduring.)

 

"In all recorded history, no country has ever recovered from the financial position we find ourselves in today."

[Vague_Boy]

It's time to cut pensions by 2% in real terms. The savings would be immense and the pensioners would still be living in relative luxury.

 

Since public pensions were first introduced, average life expectancy has grown from 48 to 80 – a 67% increase. But the age at which we retire has remained essentially the same. This has resulted in an estimated £5 trillion worth of pension promises the state has made to its citizens – roughly five times what our entire economy is worth. No one has any idea how we’ll pay these. The recent attempts by the government to change the retirement age don’t go anywhere near solving the problem.

LINK

 

(By "5 times what our entire economy is worth" the author is referring to annual GDP.)

 

As people have lived longer, the strain on the NHS – the demand for medication, more doctors, nurses and other staff, as well as a skyrocketing cost of caring for the elderly – has pushed our finances to breaking point.

 

UK Total State Spending 1900-2010

 

 

So what’s different about today? Why can’t the government just keep giving us MORE – and take on more debt to pay for it. That’s worked for 100 years – why won’t it work now?

 

The answer to that is simple. The explosion of government spending and government debt has mostly come in the past 30 years. And during that time, it’s been easy and cheap for the government to borrow money.

 

In 1982 Margaret Thatcher’s government had to pay 15% to borrow money for three years. This came in the form of a bond (a gilt). Anyone with money – be it a rich country or a pension fund – could invest in the bonds, and receive 15% interest in return.

 

But over time the government’s borrowing costs have fallen – dramatically. Now, the government only has to pay 2% to borrow money over the same period. That’s seven times cheaper than in 1982.

 

And low interest rates make it easier to borrow money.

 

The simple truth is, if interest rates were at their normal rate of 5% - instead of the extremely low 2% they’re at right now – there’s absolutely no way Britain could ever repay its debts. In fact, at normal rates of interest we’re already bust. Not just ‘in over our heads’ but six feet under.

 

It’s simple maths. If interest rates moved back towards the normal 5% level, our cost of borrowing would triple.

 

Just to put that into context, if our current debt repayments tripled, the government would have to take drastic action – like abolishing the state pension. Or privatising the NHS. Or pushing tax rates back up to 90%, as they were in the 1960s.

 

But I don't think anyone on here really wants to listen to such things, do they?

 

Surely we can just keep borrowing more and more, after all, private individuals can just rack up as much debt as they like ad infinitum can't they? Why not the government?