Lost it or never had it?

[firestorm]

George Osbornes deficit reduction plan isn't working. Borrowing is rising and now we lose our AAA rating. Is it time to change the plan?
http://m.bbc.co.uk/news/business-21554311

 

[FOMz]

They won't do that because that will say that Gideon got it wrong..... They were warned in October last year about losing the AAA rating and thy did nothing... I think the plan is 'If all else fails, ignore the facts presented'


[Spotter] Captain Gideon there's an iceberg off the starboard bow!

[Ozzy] We must stay the course! This ship can take it!

Wonder if this captain will go down with his ship...

Probably not, he most likely has his own personal escape plan to keep his millions safe whilst the rest of us plebs fight over the life boats....

 

[firestorm]

I thought he said, "the plan isn't working, let's re-double our efforts on the same plan?!"

 

[FOMz]

We are already paying more in interest on our national debt than the entire defence budget, this downgrade could well raise the cost of borrowing to government and will require even more taxation of the general public and UKPLC. BAD all round......

planned borrowing for 2013/14 is apparently already £109bn......

 

[John Lloyd]

Bankers lower credit rating to make more money for...............Bankers.

Lizards, the lot of them!

 

[John Lloyd]

There is a vid, but this allows for scan reading and is ominous, particularly relating to minimal increases in interest rates,

Granted it is an advert for the magazine but presents some interesting facts.

http://www.moneyweek.com/endofbritain

During the Great Depression – when thousands of ordinary people lost everything – America's total debt hit 252% of GDP. In any circumstances, that's bad.

But things can get worse. During the Japanese economic collapse – which triggered more than two decades of deflation and a 75% drop in the stock market – Japanese total debt hit 498% of GDP. That's twice as bad as the level of debt seen in America during the Great Depression.

If Britain's current debts were at those kinds of levels, it would be worrying. But in truth, our debts are now much worse than either of those two examples.

Shockingly, our debt load is now on a scale comparable with one of the most frightening economic disasters of the 20th century…

We're talking about the Weimar Republic.
Back then, suffering under the weight of brutal war reparations, civil unrest and shattered public finances, the Weimar Republic's total debt equalled 913% of its economy.

Of course you know what happened next: the government printed money and hyperinflation took off. In the end, it was cheaper to decorate your home with bank notes than wallpaper. Ultimately, the country descended into a period of economic and social crisis… a catastrophe that ended with the rise of the Nazi party.
And that was with debts worth 913% of the economy.
Today, Britain's total debt equals 900% of the economy.

 

[firestorm]

From the linked BBC article-
"The UK's net sovereign debt was the equivalent of 68% of the country's annual economic output, or GDP, at the end of last year."

 

[pie sandwich]

While I do think Osborne is a complete kn0b, without sounding as if iam sticking up for him he did inherit a poisoned chalice of an economy from labour, and has spent his time trying to polish a turd.

The thing that really worries me is that labour will get back in at the next election, we had 13 years of them spending money like it was going out of fashion failing to fix any of the countries infrastructure and secure it against any sort of economic downturn.
If they win they will do as they did and losing AAA rating won't matter, we will end up on par with Zimbabwe and not have a rating at all.

 

[John Lloyd]

From the linked BBC article-
"The UK's net sovereign debt was the equivalent of 68% of the country's annual economic output, or GDP, at the end of last year."

I think that the article relates to National debt, that's you, me, business and government.

 

[firestorm]

Fortunately there are tax cuts for the rich next month. I was thinking of getting some gold taps for the yacht.

 

[John Lloyd]

Fortunately there are tax cuts for the rich next month. I was thinking of getting some gold taps for the yacht.

Whilst I will be busily rearranging deckchairs on the Titanic.

 

[FOMz]

Until they start hitting those at the top in the same way those at the bottom aregetting hit, there will be no parity.

 

[John Lloyd]

Until they start hitting those at the top in the same way those at the bottom aregetting hit, there will be no parity.

There are more at the bottom and they just have to suck up and take it, those that decide and all their mates are at the top. Thus it was and thus it will ever be.

 

[John Lloyd]

There are more at the bottom and they just have to suck up and take it, those that decide and all their mates are at the top. Thus it was and thus it will ever be.

Until the day the Lizards are outed and Madame Guillotine is greased, oiled and sharpened. ( I really prefer the Halifax Gibbet and Donkey)

 

[PraiseBacon]

Bankers lower credit rating to make more money for...............Bankers.

Lizards, the lot of them!

Credit agencies arn't bankers, they give an opinion on the creditworthiness of an entity ( individual person, company, country, geographic region etc) . The don't lend money, or arrange for monies to be lent.


A warning that they felt Govt policy was unsustainable and would result in the loss of a AAA rating was given several months ago - and was ignored with more of the same coming from the Govt.

The downgrade , which was warned about finally came.

In what way did that involve Bankers?

Did you see Question time this week? There was an interesting part when some Labour brain dead drone blames all the sins of he world on the Bankers, and Tarzan Heseltine pointed out the previous Labour Govt borrowed far to much (mircle economy my arse, Brown just ranup debt levels) the bankers lent too much (and helped Govt policy on making home ownership available to all), people borrowed far too much - treating there home as an ATM and going on a massive spending spree.

In essence, we all did this to ourselves! Yes, the bankers are also guilty of their part, as are the Govt, as are people who self certified themselves got mortgages at 8 times their pay etc.

FWIW, I know a number of bankers, and many are weasels and **** heads, but they serviced a market that everyone created - pinning all the blame on them is mostly Labour trying to deflect attention away from how Brown destroyed the countries economy and want to pin icon someone else...


But don't let acts stop anyone jumping on the bandwagon!

( and no, I'm not a banker!)

 

[I`m Ron Burgundy?]

They won't do that because that will say that Gideon got it wrong..... They were warned in October last year about losing the AAA rating and thy did nothing... I think the plan is 'If all else fails, ignore the facts presented'


[Spotter] Captain Gideon there's an iceberg off the starboard bow!

[Ozzy] We must stay the course! This ship can take it!

Wonder if this captain will go down with his ship...

Probably not, he most likely has his own personal escape plan to keep his millions safe whilst the rest of us plebs fight over the life boats....

Absolutely could not have put this better myself; if this isn't enough of a warning to change course then what is?!

 

[busby1971]

I wouldn't trust the economy to Labour again after completely messing it up last time and committing us all to PFIs for years to come.

I wouldn't trust Lib Dems with my dinner money, whom now they've got a bit of power have shown themselves to be in the main feckwits who change their policies as often as a OCD affected individual changes his undies.

And Tory's are politicians so don't earn any trust nor respect from me either.

However, you've got to vote for one of them, unless you waste it on a protest vote elsewhere, so who do think is honestly going to do the best for the whole of society.... and not just bribe their core vote.

By the way don't forget this isn't a Conservative Govt it's a coalition, there'd have been a much bigger savings hit on benefits if the Libdems hadn't been at the cabinet table.

 

[John Lloyd]

Credit agencies arn't bankers, they give an opinion on the creditworthiness of an entity ( individual person, company, country, geographic region etc) . The don't lend money, or arrange for monies to be lent.


A warning that they felt Govt policy was unsustainable and would result in the loss of a AAA rating was given several months ago - and was ignored with more of the same coming from the Govt.

The downgrade , which was warned about finally came.

In what way did that involve Bankers?

Did you see Question time this week? There was an interesting part when some Labour brain dead drone blames all the sins of he world on the Bankers, and Tarzan Heseltine pointed out the previous Labour Govt borrowed far to much (mircle economy my arse, Brown just ranup debt levels) the bankers lent too much (and helped Govt policy on making home ownership available to all), people borrowed far too much - treating there home as an ATM and going on a massive spending spree.

In essence, we all did this to ourselves! Yes, the bankers are also guilty of their part, as are the Govt, as are people who self certified themselves got mortgages at 8 times their pay etc.

FWIW, I know a number of bankers, and many are weasels and **** heads, but they serviced a market that everyone created - pinning all the blame on them is mostly Labour trying to deflect attention away from how Brown destroyed the countries economy and want to pin icon someone else...


But don't let acts stop anyone jumping on the bandwagon!

( and no, I'm not a banker!)

Let me rephrase that from brevity.
Financial services lower credit rating to make money for.......Financial services. Credit ratings dictate borrowing costs which create financial earnings. Moodies isn't a charidee, they take their slice of pie from........financial services. It's capitalism gone global.

View attachment 13020

 

[firestorm]

Let's just row back a bit.
I'm no fan of Labour but they didn't actually cause the global credit crunch. The financial services sector and the greedy, dishonest scum who work in it did.

As for voting, that's a tough one. I won't vote labour after the hatchet job they did on us. I'll never vote Tory as I'll never be rich enough to benefit from them. Lib-dem? That's not a mistake I'll make twice! The system is entirely corrupt and voting seems like me to validate something I loath. I can however see why forces people vote for Tories.

 

[MontyPlumbs]

I don't get wound up by this tot anymore, it's all smoke and mirrors anyway, trying to disguise the fact that eventually our whole paper currency system will collapse.

I buy gold and silver bullion every month, I trust it a damn sight more than some worthless bits of paper that the banks keep on printing, and as a further plus, the Government have no idea how much I've got, or where I am holding it.

With a lifetime of savings fitting into a few gold coins, it's looking increasingly sensible as the whole sorry affair drags on. Probably explains the huge demand for bullion products in the last few years.