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BMW 3-Series (E90 E92) Forum > BMW E90/E92/E93 3-series General Forums > Regional Forums > UK > UK Off-Topic Discussions > 1 Trillion of debt



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      10-03-2010, 01:02 PM   #23
Steve A
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Originally Posted by Rochdale Pioneers View Post
We don't have a problem with debt. We are not broke, we physically cannot go bankrupt.

Let me explain. Cameron made repeated comparisons to Greece. That country is in the Euro, so doesn't control its currency, cannot change its interest rates, and has very large debts all in this foreign currency which need repaying/refinancing with foreign investors in the next 2-5 years.

Britain on the other hand has its own currency. It prints this currency which handily happens to be the same currency that all its debts are in. Those debts are all long term (<15 years before payback/refinance) and the MAJORITY of them are owned by UK pension funds.

Our debt is high compared to the last decade or so (after Labour paid off a lot of debt) but compared to all our competitors in the G8 we're pretty low. And debts always sit across the balance sheet from assets, and we have rather a lot of those in the form of our money invested abroad.

We need to cut the current account deficit - we spend more than be bring in each year. Of this number a few percent is structural (Labour overspent from 2002 onwards having massivelu underspent pre-2002), but the majority is from the drop in tax receipts caused by the recession. The only way to fix this is to create growth which creates jobs which creates tax receipts. You cannot mug benefits claimants for the money - it will cost more due to the increase in benefit claimants.

So should we be worried? A little. But we're not Greece or Ireland or Eastern Europe. Nor do we have much exposure as and when those countries collapse.
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      10-03-2010, 01:17 PM   #24
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We're 1 month into our time living in France - and don't plan to return to UK for at least 3 years (fingers crossed).

France is great, but the standard of driving is woeful and the cost of living can be high (food can be expensive, esp eating out, insurance is high - nearly EUR700 for the BMW (300 in UK)).

On the other hand, the food is great, there's no road tax, and the weather is considerably better - just had 26deg sun all weekend - with lots of exciting new stuff to see and do.

Strikes seem to be common, so France is not immune from the pressures of the current economic situation - seems to have been almost 1 a week so far.

It'll be interesting to follow what happens in the UK - esp with interest rates. We've rented out our UK house, but we'll see if our UK rent income goes down rather than up. I'm very worried about the pace of Govt spending cuts forcing a worse than necessary recession, and 'financial misery' on a scale not seen since for many years.
Am sure there will be a few allowances that make up for the additional costs of living! Trust they are not working you too hard!
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      10-03-2010, 01:41 PM   #25
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Am sure there will be a few allowances that make up for the additional costs of living!
Err, well yes.

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Trust they are not working you too hard!
Don't you believe it - working until after 8 most nights last week - looks like this week will be the same.....but it is interesting stuff (its good to be back in some proper technical detail)!
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      10-03-2010, 01:47 PM   #26
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Err, well yes.



Don't you believe it - working until after 8 most nights last week - looks like this week will be the same.....but it is interesting stuff (its good to be back in some proper technical detail)!
If I had the choice of working till late in Shabbywood Bristol or the south of France, I know where I would choose!
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      10-04-2010, 03:52 AM   #27
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ajd - where(ish) in France? Lucky thing!

Although having just had a weekend of cracking surf then a lovely day out on the boat, the UK isn't too bad...!
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      10-05-2010, 05:03 PM   #28
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ajd - where(ish) in France? Lucky thing!

Although having just had a weekend of cracking surf then a lovely day out on the boat, the UK isn't too bad...!
Near Toulouse - nipped down to the med last Sunday for lunch near Leucate....



...it was very windy, windsurfers a plenty blasting with what looked like sub 5m2 sails on the inland lagoons. Made me want to get my BiC Electric Rock out of the garage - but as its getting on for 20 years old its probably not safe....
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      10-06-2010, 03:51 AM   #29
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Ooh that looks very nice!
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