We borrowed £11.4 bn in June sending our debt to £1.3 trillion, what is this all about and how is it good, even an FF costs less to run

I studied economics a long time ago.

It's not good.

Rather than looking at the absolute number you need to compare to a % of GDP. In 2005 it was about 40%, now it's over 90%.

You can't really blame the current givernment for this, it was really caused by the previous administration. When Labour came in in what 97, they said they would balance national debt over the economic cycle. Well, the kindest thing you can say is they mis-calculated.

It will take many years of growth and government austerity to get it back down again, which will need to be done because going into the next recession we would pay a big premium to borrow then if we still had a high national debt.

Incidentally, the SNP have said they will increase growth by increasing borrowing. It's a very dangerous strategy even when you have more certainty about your currency and debt levels. No way would it be possible in a Stirling currency union when the UK side is persuing austerity.

Kurt, thanks, see my posts re Scottish independence, I am British through and through but even that seems to be a crock I lived in the Channel Islands for a couple of years, they have it sorted, why cant we

Don't worry, I'm not going to go all pro Conservative or Lib Dem but.....

It tickles me when Labour criticise the current govenrment for their policies etc and say " if we were in power we would do this......to reslove the problems!"

Well you know what - they were in power and hold a good proportion of the blame but they never did what they claim to be able to do now!!!! If they had then perhaps the current bunch of lunatics wouldn't be running around looking for a pot of miracle gold whilst sacrificing public spending,

Someone once said ..... the very fact you want to become an MP should be enough to bar youy for life!" Never as truer word spoken IMHO!!!

"A democracy cannot exist as a permanent form of government. It can only exist until the majority discovers it can vote itself largess out of the public treasury. After that, the majority always votes for the candidate promising the most benefits with the result the democracy collapses because of the loose fiscal policy ensuing, always to be followed by a dictatorship, then a monarchy."

Also:
http://info.moneyweek.com/urgent-bulletins...0britain~e
Or


Our society is addicted to government spending. It needs to be weaned off and slowly. That is what the Tories are doing. They need to deflate the debt with inflation (hence the BoE printing money) and stimulate as much growth as possible with low interest rates and minimal regulation. Then, maybe just maybe, we can get out of this hole in 20 or 30 years.

The trouble is that they won't get 30 years. It looks like they will be out on their ear at the next election. Then the that dropped us in this will be back again trying to buy votes with benefits.

So I guess the burning question is can a dictatorship be anything than corrupt?

I'm not aware of any that haven't been in some form or another but that doesn't mean it isn't possible - except perhaps the old adage that "power corrupts & absolute power corrupts absolutely!"

Not that the wishy-washy labour leader would ever have the b**ls to become a dictator. Now Boris Johnson on the other hand.......!

^+1 Riccarton

Emperor Mong - I agree entirely. They have a very different attitude to public debt in Germany and Switzerland, recognising that building up debt is just stealing the next generations futures.

But to those who talk about spending on schools, hospitals and transport - Labour promised to do this, and they did significantly increase expenditure in these areas. Where's the money gone? I remember asking a teacher about this and he said you just don't see the money at the front line. It's been wasted. Governments spend money spectacularly badly.

RiccartonRR wrote:

So I guess the burning question is can a dictatorship be anything than corrupt?

^ + 1 Kurt.

Years ago a doctor friend who was staunch Conservative was cheering the election of a Labour government. WHen I asked him why he replied that Labour solution to the medical situation was to throw money at doctors. So I asked if this would mean more patients getting better treatment he retorted - "Hell no - but I'll be able to buy that Porsche I've been after!"

Spending money doesn't help if it's not spent wisely! (IMHO of course!)

We applaud governments for spending money. I am waiting for them to say when/how this debt will be paid off. I see inflation on the horizon.

MC

Are these the same people in parliament who all want to spend 50 + billion on a railway (hs2) for a minority to use. Ithink dictatorship has already begun

The dictatorship has being running for many years now - just look at the expenses scandal etc. etc.

We need to get RID of (with very few exceptions) our entire stock of feeble, self interested overpaid career politicians, and go back to the pre-war days.

The politicins then were mainly people who had been in the REAL (i.e external to Westminster / Brussels) world, either running businesses or working for a living in the private, NOT public sector, and were MP's because they wanted to GIVE something to society, rather than the present bunch, who just want to TAKE.

And, they also had leaders, unlike the wet blankets we have now (and that includes Cameron, Milliband and Clegg), IMHO they are all cr p without exception and are NOT fit to lead anything, let alone our country.

Come the day of the revolution

Rant over  2006 (56 Reg) 4.4 V8 Vogue In Bonatti Grey (Gorgeous!!)