Deficits, debts, bailouts - thickos guide
Discussion
Right, I'm sure this has been covered before, but bear with...I just want to try and understand the figures a bit more.
UK deficit was running at around £180 billion / year end of 2009 - this is the difference between what the government spends and what the government receives?
UK debt was around £1 trillion year end 2010. This is how much it owes, and is presumably increasing by the amount of the deficit per year?
The previous government bailed out the banks to the tune of £850 billion - is this counted in the debt/deficit, or is it not as it is a "loan" to the banks?
How much will the deficit be reduced by after this emergency budget? Can £180 billion+ efficiency savings be found?
Edited to change "bare" to "bear"
UK deficit was running at around £180 billion / year end of 2009 - this is the difference between what the government spends and what the government receives?
UK debt was around £1 trillion year end 2010. This is how much it owes, and is presumably increasing by the amount of the deficit per year?
The previous government bailed out the banks to the tune of £850 billion - is this counted in the debt/deficit, or is it not as it is a "loan" to the banks?
How much will the deficit be reduced by after this emergency budget? Can £180 billion+ efficiency savings be found?
Edited to change "bare" to "bear"
Edited by evenflow on Thursday 24th June 09:54
evenflow said:
Right, I'm sure this has been covered before, but bear with...I just want to try and understand the figures a bit more.
UK deficit was running at around £180 billion / year end of 2009 - this is the difference between what the government spends and what the government receives?
Yes. Basically we have to prop up our spending by a massive ocean finance loan each year.UK deficit was running at around £180 billion / year end of 2009 - this is the difference between what the government spends and what the government receives?
evenflow said:
UK debt was around £1 trillion year end 2010. This is how much it owes, and is presumably increasing by the amount of the deficit per year?
Yes, but don't forget interest on the debts as well.evenflow said:
The previous government bailed out the banks to the tune of £850 billion - is this counted in the debt/deficit, or is it not as it is a "loan" to the banks?
It wasn't hard cash, but a 'promise'. In return the government recieved some shares (or options?) - which have now risen into profit.evenflow said:
How much will the deficit be reduced by after this emergency budget? Can £180 billion+ efficiency savings be found?
I heard about £80m but I guess the true savings will take a while to be calculated.I'm a thicko too - so that's a thickos perspective.
evenflow said:
Right, I'm sure this has been covered before, but bear with...I just want to try and understand the figures a bit more.
UK deficit was running at around £180 billion / year end of 2009 - this is the difference between what the government spends and what the government receives?
UK debt was around £1 trillion year end 2010. This is how much it owes, and is presumably increasing by the amount of the deficit per year?
The previous government bailed out the banks to the tune of £850 billion - is this counted in the debt/deficit, or is it not as it is a "loan" to the banks?
How much will the deficit be reduced by after this emergency budget? Can £180 billion+ efficiency savings be found?
Edited to change "bare" to "bear"
Last year the labour government 'printed' 200 bilion squids to effectively pay its bills ie fill the deficit. Assuming as near as dammit no growth and presumably rising unemployment, exactly a year on, how will Camclegg find that amount again?. Surely the cuts will not come quick enough?. I read, cant find the source that there isnt £180 billion available on the markets to borrow, anywhere, at this time, going forward, so what will happen?. Print more £?, inflation, and devalued pound, (gilts as well?). Very angry savers, not that there not already. Or default on our debt?. Politically unthinkable. Imf comes in. Austerity measures. Maybe were too big to fail now?. Apparently we trade at below AAA status, but if we were downgraded officially, our creditors would never see anything back, we would spiral out of control. Hence they are trying to keep us afloat. UK deficit was running at around £180 billion / year end of 2009 - this is the difference between what the government spends and what the government receives?
UK debt was around £1 trillion year end 2010. This is how much it owes, and is presumably increasing by the amount of the deficit per year?
The previous government bailed out the banks to the tune of £850 billion - is this counted in the debt/deficit, or is it not as it is a "loan" to the banks?
How much will the deficit be reduced by after this emergency budget? Can £180 billion+ efficiency savings be found?
Edited to change "bare" to "bear"
Edited by evenflow on Thursday 24th June 09:54
anonymous said:
[redacted]
This is exactly the piece of information that needs to be communicated more to the general masses as until they realise its actually 'their' fault we are in the mess we are in (i.e. for collectively voting in Gordo and buying plasmas on tick from Brighthouse funded by created non-jobs) then really the condems will never get the support they probablly need to make serious cuts. Far easier to blame the banks though (who are not blameless but far from wholly responsible).Sent from my iPad, only £35 per month over 60 months at 236% APR
marsred said:
This is exactly the piece of information that needs to be communicated more to the general masses as until they realise its actually 'their' fault we are in the mess we are in (i.e. for collectively voting in Gordo and buying plasmas on tick from Brighthouse funded by created non-jobs) then really the condems will never get the support they probablly need to make serious cuts. Far easier to blame the banks though (who are not blameless but far from wholly responsible).
Sent from my iPad, only £35 per month over 60 months at 236% APR
Blame the numpties, exonerate the professionals from duty of care is what I see when "fault" and banks are discussed. When will these people learn that not every customer in any sector is as astute as the professionals, and that many rely on professionals to give them the right advice, and not put them in high risk, or unnecessary situations. Sent from my iPad, only £35 per month over 60 months at 236% APR
Sending out "SuperDuper credit card - apply now" junk mail at the rate of 5 a day to people who are not really in a position to deal with it was the start. Then the individual greed of the plasma desirer, and the need to achieve targets in branches took over. Just how many offers like that did we all get FFS?
Yes, they all hear the compliance speeches, but how many people truly understand that commitment they are making when entering into a financial arrangement with a bank? They just accept that if the bank is happy, it's gonna be ok. They do not think that the bank may be happy for other reasons...
I do not agree that it is the greed of the consumer. I think that the banks induced the consumer into a credit culture by burying them in suggestions to take credit, and many did.
SeeFive said:
marsred said:
This is exactly the piece of information that needs to be communicated more to the general masses as until they realise its actually 'their' fault we are in the mess we are in (i.e. for collectively voting in Gordo and buying plasmas on tick from Brighthouse funded by created non-jobs) then really the condems will never get the support they probablly need to make serious cuts. Far easier to blame the banks though (who are not blameless but far from wholly responsible).
Sent from my iPad, only £35 per month over 60 months at 236% APR
Blame the numpties, exonerate the professionals from duty of care is what I see when "fault" and banks are discussed. When will these people learn that not every customer in any sector is as astute as the professionals, and that many rely on professionals to give them the right advice, and not put them in high risk, or unnecessary situations. Sent from my iPad, only £35 per month over 60 months at 236% APR
Sending out "SuperDuper credit card - apply now" junk mail at the rate of 5 a day to people who are not really in a position to deal with it was the start. Then the individual greed of the plasma desirer, and the need to achieve targets in branches took over. Just how many offers like that did we all get FFS?
Yes, they all hear the compliance speeches, but how many people truly understand that commitment they are making when entering into a financial arrangement with a bank? They just accept that if the bank is happy, it's gonna be ok. They do not think that the bank may be happy for other reasons...
I do not agree that it is the greed of the consumer. I think that the banks induced the consumer into a credit culture by burying them in suggestions to take credit, and many did.
Wanta996Gotta said:
SeeFive said:
I do not agree that it is the greed of the consumer. I think that the banks induced the consumer into a credit culture by burying them in suggestions to take credit, and many did.
Exactly - Blame the "Banks" for lending the unemployed or low paid single mother money to buy a 50inch plasma or put a Holiday to Marbella on her credit card with a £10k limit. And lets not forget the BANK - Northern Rock offering people 120% mortages.AFAIK a deficit arises when you spend more than you earn. This is what the government has done.
In your example THE GOVERNMENT is the one buying a plasma when they can't even afford to pay their electricity bill.
Unfortunately for the government and for us they can't just blame people tempting them with easy credit.
Much of the deficit arose because long term spending plans built in 5% GDP growth in perpetuity.
In reality we saw flat/down GDP - but still spent the same - so the government spent more than they earned.
Now we need to readjust the balance by spending less.
Gassing Station | News, Politics & Economics | Top of Page | What's New | My Stuff