PART 2 of Comfortable and secure? Wake up to the what's happening

[crazybaby]

So how big is the governments debt?

Who do they owe the money to?

& whats the answer?

[erebus]

I don't see the problem. This is not the governments debt, this is our debt. If you borrow money, you have to pay the debt. The nation has binged on credit, we WILL all have to pay for it, and so will our children, grandchildren and great grandchildren.

 

David Cameron going to add an estimated £700 billion to the national debt in just five years. That’s more than Tony Blair and Gordon Brown added to the national debt in eleven years. It’s more than every British government of the past 100 years put together.

[I1L2T3]

So how big is the governments debt?

Who do they owe the money to?

& whats the answer?

 

Other governments

banks

investment funds

pension funds

individuals

 

Government debt is not necessarily a massive problem as long as it can be managed. The biggest risk comes from the banks.

[crazybaby]

Other governments

banks

investment funds

pension funds

individuals

 

Government debt is not necessarily a massive problem as long as it can be managed. The biggest risk comes from the banks.

 

Okay thanks, so

 

Government debt is manageable & not a huge problem (so why do politicians make such an issue of it?)

 

& why are the banks in such a mess, is it because of bad investments (did they use our money) if so what would happen if we just let them go bust like Iceland? would the government be able to reimburse the savers? What sort of economy does Iceland have now?

[I1L2T3]

Okay thanks, so

 

Government debt is manageable & not a huge problem (so why do politicians make such an issue of it?)

 

& why are the banks in such a mess, is it because of bad investments (did they use our money) if so what would happen if we just let them go bust like Iceland? would the government be able to reimburse the savers? What sort of economy does Iceland have now?

 

Government debt remains manageable as long as the repayments and interest are manageable. It is why Osborne & co focus so strongly on keeping interest rates on government debt as low as possible. If the interest rates were to go to high then it would be more difficult to pay the debt, or some form of drastic action such as printing money to cover the debt would be needed. Bring able to print puts us in an entirely different situation than Greece, Italy etc... Who cannot print because they are bound to the Euro.

 

But on the whole UK debt is still manageable, and importantly with an independent currency we do have options although they ain't great ones.

 

So why is it such a big deal?

1. For reasons stayed above it needs to be controlled so it remains manageable.

2. Governments need to be seen as fiscally prudent, seen as making appropriate choices about spending

3. It provides an excellent smokescreen for achieving things politically. For example, as a justification for austerity.

4. It's distraction therapy for the masses. Maybe sometimes they want you looking the other way so the whole deficit/debt story gets amplified by the government

 

Why are the banks in a mess? All kinds of reasons. People have written whole books on it. I can recommend this one:

 

http://www.amazon.co.uk/The-Default-Line-Inside-Nations/dp/1781854106/ref=sr_1_1?ie=UTF8&qid=1383661753&sr=8-1&keywords=faisal+islam

[*_ash_*]

Let's for a moment say it's true as I1L2T3 suggests. "What is your solution" I hear you cry..well part of the solution is informing, gotta start somewhere huh? If you don't believe it it isn't "misery" it's just *****cks and you go onto the next mundanely repetitive thread (probably Muslim, scrounger or some other such *****cks) and simply ignore.

 

But, as you mention misery, that would be an indication you agree but don't want to hear what you're reading in your head..therefore burying what you know and not informing? (which is actually NOT doing something) which in itself is equally miserable.

 

I've posted countless posts on what problems there are and what can be done. There are generally a couple of types of people though, realistic ones (certainly a minority) and ideologists (the majority). My signature explains in short where the problem lies. Human nature. And the basis for capitalism too as it happens.

 

The answers people want are ideological responses, more money, more spending (or equally unsustainable spending to now).

 

Most people don't live to their means but don't want less than they have now. I'm not immune from that either, I might add.

[erebus]

I1LT3....as it is theee....Government debt remains manageable as long as the repayments and interest are manageable. It is why Osborne & co focus so strongly on keeping interest rates on government debt as low as possible. If the interest rates were to go to high then it would be more difficult to pay the debt, or some form of drastic action such as printing money to cover the debt would be needed. Bring able to print puts us in an entirely different situation than Greece, Italy etc... Who cannot print because they are bound to the Euro.

 

But on the whole UK debt is still manageable, and importantly with an independent currency we do have options although they ain't great ones.

 

So why is it such a big deal?

1. For reasons stayed above it needs to be controlled so it remains manageable.

2. Governments need to be seen as fiscally prudent, seen as making appropriate choices about spending

3. It provides an excellent smokescreen for achieving things politically. For example, as a justification for austerity.

4. It's distraction therapy for the masses. Maybe sometimes they want you looking the other way so the whole deficit/debt story gets amplified by the government

 

Why are the banks in a mess? All kinds of reasons. People have written whole books on it. I can recommend this one:

 

The answer to many of your questions, and maybe people ought to be woken up to the reality that HAS been created while they are smothered in platitudes and that tomorrow there will be jam. There is no chance of jam, except for the few, and with luck after the winter one will start to realise that when a society is ruled by the moneylenders, it is a most interesting to see how the populist actors learn and disperse the lines they are taught.

 

This is why one should sit up a bit:

 

Britain is now one of the most heavily indebted countries in the Western world. That’s official. The only countries that have more debt than us are Japan and Ireland. Our total debts stand at more than FIVE TIMES what our entire economy is worth. When you add in all of Britain’s “unfunded obligations” – promises the Government has made on things like public sector pensions – our debts swell to 900% of our economy. In 2012, for example, the government spent roughly £120 billion more than it collects in taxes. Compare the above facts with the Great Depression America’s total debt hit 252% of GDP. The Weimar Republic’s total debt equaled 913% of its economy and hyperinflation took off, and it was cheaper to decorate your home with bank notes than wallpaper. Today, Britain’s total debt equals 900% of the economy.

 

When you’re in a lot of debt, interest rates are either your lifeline… or your death sentence. When rates move higher… eventually, you’re finished. In Greece people couldn’t get their money out of banks fast enough, businesses collapsed. In that environment, just keeping your family safe is a big challenge. That’s the danger of rocketing interest rates to a country with huge debts.

 

Even a small jump in interest rates would wipe billions of capital off banks’ balance sheets. It’s impossible to say exactly which high street banks – if any – could withstand that kind of hit.

 

What would most people do if banks fold and they are unable to withdraw their savings. What to do if the stock exchange suspends trading. People who were not aware of the gathering clouds, will be clueless if their pension income dries up. And if their home loses 50% of its value.

 

So if you think that was a bit over the top, get a load of this:

 

Despite David Cameron’s talk of “austerity”, he’s going to add an estimated £700 billion to the national debt in just five years. That’s more than Tony Blair and Gordon Brown added to the national debt in eleven years. It’s more than every British government of the past 100 years put together.

 

WHEN???? That is the question When will it kick off. No longer is there a question of IF, its just when, the dice a re loaded, and the game is in play. Will it be when interest rates creep up 1%... 2%? It might be a long, slow drawn-out process that drains your wealth over the next decade. Or this time next year, the financial system could be breaking apart. It’s impossible to say. Britain is entering a long, downward cycle. One that is likely to be punctuated by a devastating financial, and even social collapse. Its happening all over North Africa, the Middle East, Asia, South America, and let us not forget Europe. So that is where riots are a daily reality, where the elites, or those with the power, attack, imprison, torture, and kill to keep the filthy plebs from changing things. meanwhile the plebs, starve, commit suicide, rob each other all in an attempt to stay alive, in a world of chaos, and repression.

 

Hope it helps, better forewarned of the facts?????????????????????