Osbourne "UK has no money left"
Osbourne "UK has no money left"
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AndrewW-G

Original Poster:

11,968 posts

248 months

Monday 27th February 2012
quotequote all
http://www.telegraph.co.uk/news/politics/9107485/G...

My question to everybody is this . . . . What would you do, to aid growth and improve the UK's balance sheet?

paulrockliffe

16,654 posts

258 months

Monday 27th February 2012
quotequote all
I don't understand the headline. Surely the moment we spend more than is in the bank, we have no money left by definition. We've been running a deficit for years, so of course there's no money left. The question, as always is, "Can we borrow some more money?" or "Can we print some more money?" And the answer to both is yes isn't it?

PugwasHDJ80

7,684 posts

252 months

Monday 27th February 2012
quotequote all
paulrockliffe said:
I don't understand the headline. Surely the moment we spend more than is in the bank, we have no money left by definition. We've been running a deficit for years, so of course there's no money left. The question, as always is, "Can we borrow some more money?" or "Can we print some more money?" And the answer to both is yes isn't it?
so from your points of view we should just keep borrowing more and more money until such time as out total GDP is used up paying back interest on debt?

is that correct?

at some point the borrowing HAS to stop- we already spend an inordinate amount of money on debt, and with public secotr pension liabilities estimated in the trillions, our liabilities probably leave us, in reality, bankrupt.

paulrockliffe

16,654 posts

258 months

Monday 27th February 2012
quotequote all
PugwasHDJ80 said:
so from your points of view we should just keep borrowing more and more money until such time as out total GDP is used up paying back interest on debt?

is that correct?

at some point the borrowing HAS to stop- we already spend an inordinate amount of money on debt, and with public secotr pension liabilities estimated in the trillions, our liabilities probably leave us, in reality, bankrupt.
No, not at all, you've completely misunderstood my opinion on that. My comment was on the method of reporting rather than anything else, I didn't make any reference to what I think should or shouldn't be done.

If I brought my political leanings into it I would ask why the headline is relevant today given that it wasn't relevant 10 years ago when borrowed money was being pissed up the wall left right and centre. But mostly left.

maxrider

2,481 posts

267 months

Monday 27th February 2012
quotequote all
What's Ozzy got to do with the article?

Oakey

27,984 posts

247 months

Monday 27th February 2012
quotequote all
PugwasHDJ80 said:
so from your points of view we should just keep borrowing more and more money until such time as out total GDP is used up paying back interest on debt?

is that correct?

at some point the borrowing HAS to stop- we already spend an inordinate amount of money on debt, and with public secotr pension liabilities estimated in the trillions, our liabilities probably leave us, in reality, bankrupt.
No no, everyone knows that when you are in a mountain of debt the solution is to keep borrowing more. Surely you've done it yourself? You max out your credit card, hit its £3k limit, the bill rolls in, you open it, look at what you owe and immediately get on the phone to your credit card firm and get them to increase the limit, then promptly spend all that. It makes complete financial sense.

sinizter

3,348 posts

217 months

Monday 27th February 2012
quotequote all
AndrewW-G said:
http://www.telegraph.co.uk/news/politics/9107485/G...

My question to everybody is this . . . . What would you do, to aid growth and improve the UK's balance sheet?
Run my business as well as I can and pay the minimum required punitive taxes.
Spend what I need to spend for my lifestyle.
Save up for my retirement.

That's it.

RYH64E

7,960 posts

275 months

Monday 27th February 2012
quotequote all
AndrewW-G said:
http://www.telegraph.co.uk/news/politics/9107485/G...

My question to everybody is this . . . . What would you do, to aid growth and improve the UK's balance sheet?
Spend less and tax less, let's see some proper cuts.

fido

18,930 posts

286 months

Monday 27th February 2012
quotequote all
AndrewW-G said:
My question to everybody is this . . . . What would you do, to aid growth and improve the UK's balance sheet?
I would combine the 50% tax band and 40% into a single 45% band, thus eliminating the envy tax and increasing the tax intake in one go. This new higher rate could be reduced in the future when the UK's finances are in a better state. I would also increase the basic rate, but by a smaller amount e.g. 2.5%. The proceeds would be used specifically to reduce corporation tax for companies based in the UK.

chris watton

22,551 posts

291 months

Monday 27th February 2012
quotequote all
What happened in the '80's when so many investors came to the UK to do business and employ people?

Surely if the UK made it more attractive for private business investment (NOT public sector), this would go some way to help?

SystemParanoia

14,343 posts

229 months

Monday 27th February 2012
quotequote all
why not just print off the money, and then pay of all the national debt in one go.

that way all our debt is gone and the fact we have printed off money means we've only had to invest in a bit of paper. simple ? .. or is it?

bobbylondonuk

2,206 posts

221 months

Monday 27th February 2012
quotequote all
SystemParanoia said:
why not just print off the money, and then pay of all the national debt in one go.

that way all our debt is gone and the fact we have printed off money means we've only had to invest in a bit of paper. simple ? .. or is it?
Devalues the currency significantly. Cost of living will rise, Imports will be more expensive. Political suicide!

SystemParanoia

14,343 posts

229 months

Monday 27th February 2012
quotequote all
isnt it easier to recover from that than to recover from debt?

also, if the currency is devalued, then wouldn't the export market come back to life in a big way?

RichardD

3,608 posts

276 months

Monday 27th February 2012
quotequote all
SystemParanoia said:
why not just print off the money, and then pay of all the national debt in one go.

that way all our debt is gone and the fact we have printed off money means we've only had to invest in a bit of paper. simple ? .. or is it?
We could print £60 trillion and give everyone £1 million each and we'd all be retired. Jobsagudun.

However how much then would the bloke at the corner shop want to come out of retirement in order to open the shop so you can buy that loaf of bread scratchchin

pilchardthecat

7,483 posts

210 months

Monday 27th February 2012
quotequote all
Flat tax, X% on all income for everybody and every form of income, harmonised to replace income tax, NI, corporation tax.
Abolish all in-work benefits and tax credits. Sack lots of government employees whose job it is to manage all the comnplexity that just disappeared. Rake in piles of cash from employees posing as subcontractors and the buy-to-let population.
Withdraw from the EU.

SystemParanoia

14,343 posts

229 months

Monday 27th February 2012
quotequote all
RichardD said:
SystemParanoia said:
why not just print off the money, and then pay of all the national debt in one go.

that way all our debt is gone and the fact we have printed off money means we've only had to invest in a bit of paper. simple ? .. or is it?
We could print £60 trillion and give everyone £1 million each and we'd all be retired. Jobsagudun.

However how much then would the bloke at the corner shop want to come out of retirement in order to open the shop so you can buy that loaf of bread scratchchin
hehe thats if he's still in the country tomorow lol.

but no, im not talking about giving the money to the general populace.. im just talking about eliminating the national debt, and then running the balance sheet in the black going forwards debt free

pilchardthecat

7,483 posts

210 months

Monday 27th February 2012
quotequote all
bobbylondonuk said:
SystemParanoia said:
why not just print off the money, and then pay of all the national debt in one go.

that way all our debt is gone and the fact we have printed off money means we've only had to invest in a bit of paper. simple ? .. or is it?
Devalues the currency significantly. Cost of living will rise, Imports will be more expensive. Political suicide!
yes

Look up Weimar Germany.



Off to buy a loaf

fido

18,930 posts

286 months

Monday 27th February 2012
quotequote all
SystemParanoia said:
but no, im not talking about giving the money to the general populace.. im just talking about eliminating the national debt, and then running the balance sheet in the black going forwards debt free
I think that was Gordon Brown's Plan B .. well except for the 'going forwards debt free' bit.

RichardD

3,608 posts

276 months

Monday 27th February 2012
quotequote all
SystemParanoia said:
hehe thats if he's still in the country tomorow lol.

but no, im not talking about giving the money to the general populace.. im just talking about eliminating the national debt, and then running the balance sheet in the black going forwards debt free
What will be interesting imho is how much QE there will be this year.

They are going for as much as can be gotten away with imho without hyperinflation.

Doing one massive print/payoff would probably be rather a shock to the system!

bobbylondonuk

2,206 posts

221 months

Monday 27th February 2012
quotequote all
It wont work because the debt holders will suddenly be repaid in printed money that is worthless compared to the actual debt.