Borrowing by HMG

[eldar]

Our esteemed government thinks they way to get out of the crisis caused, at least partly, by unwise borrowing and lending is by borrowing more.

I calculate that the increase in borrowing will be £95 per week for every person in the uk, every week for the next 2 years.

I'm not sure I understand this. Interest rates are low, so who is going to lend this. How would someone be able to borrow to buy a house, car or flat screen telly if the government (not just ours) is hoovering up all the money?

Can someone explain how this cunning plan is supposed to work? It seems rather illogical to me.

[Wicker Man]

eldar said:

It seems rather illogical to me.

Me too! But then our government did flog of all it's gold and bought paper dollars instead.

[Piginapoke]

eldar said:

Our esteemed government thinks they way to get out of the crisis caused, at least partly, by unwise borrowing and lending is by borrowing more.

I calculate that the increase in borrowing will be £95 per week for every person in the uk, every week for the next 2 years.

I'm not sure I understand this. Interest rates are low, so who is going to lend this. How would someone be able to borrow to buy a house, car or flat screen telly if the government (not just ours) is hoovering up all the money?

Can someone explain how this cunning plan is supposed to work? It seems rather illogical to me.

The question is, what chance is there of the UK Govt defaulting on loan repayments in future years? Then it all kicks off

[moles]

If they do and the £ becomes worthless, what happens to mortgages and company valuations I presume they do not wipe the debt?.

[Fittster]

I'm amazed there are people willing to lend Gordon the cash. Would you trust him to pay it back?

[Dunk76]

Fittster said:

I'm amazed there are people willing to lend Gordon the cash. Would you trust him to pay it back?

It's all one big CDS though isn't it?

It's not Gordo which will default, it's Call-me-Dave...

Clever Gordo.

It's what will save the Labour party from political oblivion.

[Puggit]

Even more worrying:

Guardian said:

In particular, voters are sceptical of the opposition's ability to handle the economy. Asked to compare Cameron and Gordon Brown on a series of characteristics, Brown pulls ahead by 11 points as the person most likely to get the economy back on track. He scores 35% against 24% for Cameron.

Guardian Link

[Simpo Two]

Puggit said:

Even more worrying:

Guardian said:

leftie rubbish

Nothing new there then, don't worry about it. Only Guardian readers could be so naive as to think that Gordon is safe with money, let alone sharp objects.

[Dunk76]

Simpo Two said:

Puggit said:

Even more worrying:

Guardian said:

leftie rubbish

Nothing new there then, don't worry about it. Only Guardian readers could be so naive as to think that Gordon is safe with money, let alone sharp objects.

Yup

'according to a poll commissioned by a left wing rag on whether a leftie government could borrow it's way out of trouble, conducted in a coal mining town in the North...'