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azzuri · 'Our Scotland' Fossil Joined: 12 Sep 2005 Posts: 4291

The problem isn't even so much the public (government) debt, but the private debt. It's truly scary.
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"Gordon Brown mistook a glut of cheap money and a global bull market for his own administrative genius. In so doing, he wrecked the economy. Had the Prime Minister been running a company, instead of a country, he would be facing an inquiry into allegations of criminal negligence." - Jeff Randal

"Every single person on this planet is unique. Just like everyone else..." - Random Guy in Edinburgh Pub

"A democracy cannot exist as a permanent form of government. It can only exist until a majority of voters discover that they can vote themselves largess out of the public treasury." - Alexander Tytler

"There are four ways to spend money. A) You can spend your money on yourself, in which case you will strive for a mix of the best bargain and the best quality. B) You can spend your money on someone else, in which case you are still interested in a bargain, but the quality of the product or service becomes secondary. C) You can spend other people's money on yourself, in which case price is no object but quality becomes a great concern. D) Finally, you can spend other people's money on other people, in which case neither price nor quality is of great concern."

Possibly the funniest site in the world, 'The Daily Mash' - http://www.thedailymash.co.uk/

Reluctant Hero · Posted: Mon Jan 19, 2009 10:10 pm Post subject:

Looks like the last days of RBS as a publicly owned company. Its shares fell a massive 67% today after announcing after saying its loss this year would be in the region of £8bn. A record in British corporate history.
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Visit the Our Scotland Blog at http://our-scotland.blogspot.com/

magister ludi · Gaining a Reputation Joined: 13 Dec 2008 Posts: 225

bankers...eh?

Here's a little nugget that didn't get much coverage in the UK media:

( not something to do with bad publicity of illegal activities just as Lloyds approached the final hurdle of their HBOs take-over?)

A Justice Department statement said Lloyd's "has accepted and acknowledged responsibility for its criminal conduct" in a criminal complaint filed in US District Court in New York.

The bank agreed to forfeit 175 million dollars to the United States and 175 million to New York County.

"Lloyds agreed to forfeit the funds as part of deferred prosecution agreements with the Department of Justice and the New York County District Attorney's Office,"

http://rawstory.com/news/afp/Lloy...US_fine_of_350_mln__01102009.html

Just as a matter of interest.....who picks up the tab for the $350 million......the shareholders.....the tax payer?....... or the fat cats responsible?

William_Cleland · Posted: Tue Jan 20, 2009 3:11 am Post subject:

All the idiots who used to go on about deregulation and the wonders of the Anglo-Saxon economic model compared to the Franco-German one deserve the "round them up, put in a field and bomb the b***ards" treatment that Kenny Everett used to go on about (may be showing my age with age with that). Two things to watch are that if you get made unemployed the government is only obligated to help you with mortgage payment at the Bank of England rate. Bear in mind that recent cuts in that regard have not been passed onto consumers by the "High Street banks" and that is liable to make mortgage payments impossible for a lot of people with no cash in reserve. Secondly if as is likely the economy is deliberately inflated over the next few years to reduce the value of debt, people who were sensible enough to save rather than borrow, are going to have their life savings wiped out if they hold it in pounds sterling. If you do happen to have a cash nest egg set aside I would be looking for ways to move it into other currencies or something like gold.
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No more boom and bust - Gordon Brown

William_Cleland · Posted: Tue Jan 20, 2009 3:49 am Post subject:

azzuri · 'Our Scotland' Fossil Joined: 12 Sep 2005 Posts: 4291

William_Cleland · Posted: Tue Jan 20, 2009 11:06 am Post subject:

All you have to do to create hyper-inflation is to turn on the printing presses. Given the moronic decision making that got the UK to this point I don't think it is safe to assume that the politicians are responsible enough not to try a bit of that if they are faced with imposing draconian spending cut and tax increases.
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No more boom and bust - Gordon Brown

azzuri · 'Our Scotland' Fossil Joined: 12 Sep 2005 Posts: 4291

Hyperinflation is VERY unlikely now. This can only happen when the velocity of money is high. It's not, it's very very low. Plus, the prices of government bonds have slumped, this will eventually raise interest rates and reign inflation in.
_________________
"Gordon Brown mistook a glut of cheap money and a global bull market for his own administrative genius. In so doing, he wrecked the economy. Had the Prime Minister been running a company, instead of a country, he would be facing an inquiry into allegations of criminal negligence." - Jeff Randal

"Every single person on this planet is unique. Just like everyone else..." - Random Guy in Edinburgh Pub

"A democracy cannot exist as a permanent form of government. It can only exist until a majority of voters discover that they can vote themselves largess out of the public treasury." - Alexander Tytler

"There are four ways to spend money. A) You can spend your money on yourself, in which case you will strive for a mix of the best bargain and the best quality. B) You can spend your money on someone else, in which case you are still interested in a bargain, but the quality of the product or service becomes secondary. C) You can spend other people's money on yourself, in which case price is no object but quality becomes a great concern. D) Finally, you can spend other people's money on other people, in which case neither price nor quality is of great concern."

Possibly the funniest site in the world, 'The Daily Mash' - http://www.thedailymash.co.uk/

William_Cleland · Posted: Tue Jan 20, 2009 3:03 pm Post subject:

You are a politician. For the sake of argument let's call you Gordon. You face a general election in the not too distant future. Foreign lenders are telling you to get to a place rhyming with luck given the global credit crunch, with a sinking economy you do not have enough tax revenue to meet government expenses and to service all the debt that has been accumulated through past deficit spending and bank buyouts. What would you do? Announce draconian cuts to government services and benefits and raise taxes on those still lucky enough to be in employment or turn the printing presses on where pound sterling is concerned? Answers on a postcard to Bob Mugabe of Harare.
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No more boom and bust - Gordon Brown

azzuri · 'Our Scotland' Fossil Joined: 12 Sep 2005 Posts: 4291

William_Cleland · Posted: Wed Jan 21, 2009 1:49 am Post subject:

Reluctant Hero · Posted: Wed Jan 21, 2009 10:45 pm Post subject:

Reluctant Hero · Posted: Fri Jan 23, 2009 8:56 pm Post subject:

Well, it's official. The recession has landed.

And the pound and the FTSE fall to significant levels. The FTSE below 4000 and the pound to its lowest level in 24 years.

http://news.bbc.co.uk/1/hi/business/7846266.stm
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Visit the Our Scotland Blog at http://our-scotland.blogspot.com/

Scott2006 · From Times Online February 19, 2009

azzuri · 'Our Scotland' Fossil Joined: 12 Sep 2005 Posts: 4291

...is it not £25,000 per person?

1,500,000/60 = 25,000

I just had to recalculate, since I can't believe that any foreigners would actually buy government bonds if it were above £50k per person.
_________________
"Gordon Brown mistook a glut of cheap money and a global bull market for his own administrative genius. In so doing, he wrecked the economy. Had the Prime Minister been running a company, instead of a country, he would be facing an inquiry into allegations of criminal negligence." - Jeff Randal

"Every single person on this planet is unique. Just like everyone else..." - Random Guy in Edinburgh Pub

"A democracy cannot exist as a permanent form of government. It can only exist until a majority of voters discover that they can vote themselves largess out of the public treasury." - Alexander Tytler

"There are four ways to spend money. A) You can spend your money on yourself, in which case you will strive for a mix of the best bargain and the best quality. B) You can spend your money on someone else, in which case you are still interested in a bargain, but the quality of the product or service becomes secondary. C) You can spend other people's money on yourself, in which case price is no object but quality becomes a great concern. D) Finally, you can spend other people's money on other people, in which case neither price nor quality is of great concern."

Possibly the funniest site in the world, 'The Daily Mash' - http://www.thedailymash.co.uk/

Dave Coull · Independentista Joined: 07 Nov 2006 Posts: 2809

Scott2006 · Posted: Thu Feb 19, 2009 8:16 pm Post subject:

~~At least I can admit where and when I make a mistake in stead of fighting to be king of the dung hill - which is more your style it seems.~~
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Scotland deserves a First rate Parliament for a First rate People
The Scottish Parliamentarians who voted for Treaty of Union in 1706 and signed away Independence had been voted for by less than 2% of the Scottish population

azzuri · 'Our Scotland' Fossil Joined: 12 Sep 2005 Posts: 4291

...easy mistake to make, I've done it plenty of times. Just another zero added on after all Scott.

What is important to remember is that although said assets on the balance sheet might be worth less than the government paid for them, they won't be worth zero.
_________________
"Gordon Brown mistook a glut of cheap money and a global bull market for his own administrative genius. In so doing, he wrecked the economy. Had the Prime Minister been running a company, instead of a country, he would be facing an inquiry into allegations of criminal negligence." - Jeff Randal

"Every single person on this planet is unique. Just like everyone else..." - Random Guy in Edinburgh Pub

"A democracy cannot exist as a permanent form of government. It can only exist until a majority of voters discover that they can vote themselves largess out of the public treasury." - Alexander Tytler

"There are four ways to spend money. A) You can spend your money on yourself, in which case you will strive for a mix of the best bargain and the best quality. B) You can spend your money on someone else, in which case you are still interested in a bargain, but the quality of the product or service becomes secondary. C) You can spend other people's money on yourself, in which case price is no object but quality becomes a great concern. D) Finally, you can spend other people's money on other people, in which case neither price nor quality is of great concern."

Possibly the funniest site in the world, 'The Daily Mash' - http://www.thedailymash.co.uk/

Dave Coull · Independentista Joined: 07 Nov 2006 Posts: 2809