Quite an eye opener...
Jeff
America's debts simplified
Not the most eye catching of attachments but I ran the same (similar) number for the UK and it doesn't look too promosing this side of the pond either.
It is quite interesting how politician and even economist try to mask the real debt by comparing debt to GDP rather revenue potentially collectable by the government to government debt.
It is quite interesting how politician and even economist try to mask the real debt by comparing debt to GDP rather revenue potentially collectable by the government to government debt.
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The great cuts myth: Ignore the BBC and the Left, public spending is HIGHER than under Labour
Read more: http://www.dailymail.co.uk/debate/artic ... z1vIo1s33J
A rare piece of quality journalism from the Mail...
Jeff
Read more: http://www.dailymail.co.uk/debate/artic ... z1vIo1s33J
A rare piece of quality journalism from the Mail...
Jeff
I thought that the cuts were supposed to take some time to bite and that the effect of the cuts weren't ever going to be felt the first couple of years? Forcasts that I saw said that debt would go up the first couple of years or so and then fall after that.
That's true, although from the way the Labour Party and lots of the media have been talking about austerity, you'd think we were already in the grip of massive cuts (when in fact what we're seeing is more or less in line with what Alaistair Darling said he'd do prior to the last election).
BTW, the planned cuts for the next 3 years are based on very optimistic projected growth figures, so it will be interesting to see if those figures are revised downwards in light of what's happening in Europe, and the austerity measures ratcheted up a few notches...
Jeff
BTW, the planned cuts for the next 3 years are based on very optimistic projected growth figures, so it will be interesting to see if those figures are revised downwards in light of what's happening in Europe, and the austerity measures ratcheted up a few notches...
Jeff
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superfrank
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you're mixing up deficit and debt (as Labour do deliberately to try to fool the public).hgodden wrote:I thought that the cuts were supposed to take some time to bite and that the effect of the cuts weren't ever going to be felt the first couple of years? Forcasts that I saw said that debt would go up the first couple of years or so and then fall after that.
the deficit (annual overspend) was forecast to keep rising then fall back to zero by the end of this parliament (i.e. a balanced budget) but it's not going to happen (they're gonna get nowhere near it as, as Jeff points out, the figures were based on fantasy growth forecasts).
the debt (and debt interest bill) just gets bigger and bigger... the debt can only start to fall when we have a budget surplus.
countries in Europe are in a compound debt spiral (the debt and debt interest increases faster than growth can ever pay for because the debt is too big and has past the tipping point) and the UK is close behind. a bit like when an individual has to declare themselves bankrupt because they have no hope of ever paying the debt off.
British economy may 'never quite recover' from a severe Euro collapse - http://www.telegraph.co.uk/news/politic ... lapse.html
That's according to Robert Chote, head of the Office for Budget Responsibility.
From the noises that the PM and the Chancellor are making about Europe, I suspect that they are preparing the ground for saying 'Due to events in Europe that were beyond our control, we regret that we have no choice but to intensify the austerity programme'...
Jeff
That's according to Robert Chote, head of the Office for Budget Responsibility.
From the noises that the PM and the Chancellor are making about Europe, I suspect that they are preparing the ground for saying 'Due to events in Europe that were beyond our control, we regret that we have no choice but to intensify the austerity programme'...
Jeff