UK debt hits 1 trillion

[joe-90]

It'll be worse than that mate. Rioting and looting will be rife.

 

[riveralt]

That, in figures is:

1,000,000,000,000 quid. (I think that's right) It's one thousand billion quid.

Sorry Joe but you are wrong this trillion simply refers to Public Sector Debt representing 64% of GDP.
The true debt figure is nearly £2.4 trillion representing 148% of GDP when the bail out for the banks and PFI is included. This puts us in a worse position than Greece, Italy, Ireland and Portugal - the PIIGs.
The only difference is that we have the BofE and so can print money whereas the others have the wondeful Euro!
What the government and the BofE are banking on (excuse the pun) is that increasing the money supply in this way will stoke up a tidal wave of inflation that will eventually inflate our GDP down to more manageable levels.
If you want an investment for the future, wheelbarrows. You will need them to carry your cash around with you.

 

[pred]

That, in figures is:

1,000,000,000,000 quid. (I think that's right) It's one thousand billion quid.

Sorry Joe but you are wrong this trillion simply refers to Public Sector Debt representing 64% of GDP.
The true debt figure is nearly £2.4 trillion representing 148% of GDP when the bail out for the banks and PFI is included. This puts us in a worse position than Greece, Italy, Ireland and Portugal - the PIIGs.
The only difference is that we have the BofE and so can print money whereas the others have the wondeful Euro!
What the government and the BofE are banking on (excuse the pun) is that increasing the money supply in this way will stoke up a tidal wave of inflation that will eventually inflate our GDP down to more manageable levels.
If you want an investment for the future, wheelbarrows. You will need them to carry your cash around with you.

This is what i've heard city analyst saying, the BofE printing off i think about £200 billion so far to date, and as we come out of rescession inflation will take off with wage demands etc, is this correct?

 

[joe-90]

The BofE doesn't just print money and give it away. Who would they give it to? What they do is buy bad debt off the banks for cash. The banks then use the cash to loan out to businesses to kick start the economy. When recapitalised and making money the banks would then pay off the bad debt themselves. Geditt?