Where is the money coming from

[Greg_D]

I am sure that this question has been asked before, and if it has, please post up a link before posting up the highly original "give me an R"

Where are these Billions of pounds equivalent to £16,000 per every man, woman and child in the UK we keep hearing about in the news actually coming from???

now we can be fairly sure that the gunment doesn't have this sort of money slushing around it's icelandic bank account nor under the mattress at number 10, so where the hell is all this liquidity coming from.

One possible thing i can see is it's more of a guarantor rather than a definate requirement (ie the g'ment doesn't need to actually, literally raise the money unless things get worse and banks are going to go pop)

Can someone cleverer than me explain in (with pictures preferably for the hard of thinking like me ) how the whole process is going to unfold

Greg

[Plotloss]

We've borrowed it, largely from Asia.

[grumbledoak]

Plotloss said:

We've borrowed it, largely from Asia.

^^^ That.

And your kids will have to pay it off. Nice.

[Fittster]

Plotloss said:

We've borrowed it, largely from Asia.

And why do they lend money to people who are in so much debt they can't possibly pay it back?

[Caruso]

Fund managers have been taking our pension money out of banking shares and putting it into Govt bonds. The Govt are then giving this money back to the banks.

[mercemployee]

Fittster said:

Plotloss said:

We've borrowed it, largely from Asia.

And why do they lend money to people who are in so much debt they can't possibly pay it back?

Because if they don't, "money" will cease to have worth around the globe.

(possibly)

[Snoggledog]

Fittster said:

Plotloss said:

We've borrowed it, largely from Asia.

And why do they lend money to people who are in so much debt they can't possibly pay it back?

Put it this way. If the middle east owns chunks of the UK, it'll be a lot harder for us to justify invading them and nicking their oil reserves. If we did start to mess about they'd ask for their investment back or else hike the price of oil. Whichever way they'd have us over a barrel. (Pun marginally intended)

Basically we're pwnd I believe the term is.

[Fittster]

mercemployee said:

Fittster said:

Plotloss said:

We've borrowed it, largely from Asia.

And why do they lend money to people who are in so much debt they can't possibly pay it back?

Because if they don't, "money" will cease to have worth around the globe.

(possibly)

So it's a financial emperors new clothes, the first person to say out loud that these government IOUs aren't to be relied on brings the whole system crashing down.

(possibly)

Edited by Fittster on Monday 13th October 15:50

[Fittster]

Snoggledog said:

Fittster said:

Plotloss said:

We've borrowed it, largely from Asia.

And why do they lend money to people who are in so much debt they can't possibly pay it back?

Put it this way. If the middle east owns chunks of the UK, it'll be a lot harder for us to justify invading them and nicking their oil reserves. If we did start to mess about they'd ask for their investment back or else hike the price of oil. Whichever way they'd have us over a barrel. (Pun marginally intended)

Basically we're pwnd I believe the term is.

So they have built up these huge reserves of our Government's IOUs in return for their oil. If they call our bluff and demand payment and we refuse all their reserves are worthless. Doesn't look like a position of strength to me.

[Civilian47]

I never realised so many countries made up Asia.

Edited by Civilian47 on Monday 13th October 15:57

Edited by Civilian47 on Monday 13th October 15:58

[Snoggledog]

ahem...

[10 Pence Short]

Civilian47 said:

Snoggledog said:

Fittster said:

Plotloss said:

We've borrowed it, largely from Asia.

And why do they lend money to people who are in so much debt they can't possibly pay it back?

Put it this way. If the middle east owns chunks of the UK, it'll be a lot harder for us to justify invading them and nicking their oil reserves. If we did start to mess about they'd ask for their investment back or else hike the price of oil. Whichever way they'd have us over a barrel. (Pun marginally intended)

Basically we're pwnd I believe the term is.

Is The Middle East now part of Asia?

?

[Fezant Pluckah]

Civilian47 said:

Is The Middle East now part of Asia?

Yes, and always has been.

What other continent would it be a part of? S America?

[Civilian47]

Fezant Pluckah said:

Civilian47 said:

Is The Middle East now part of Asia?

Yes, and always has been.

What other continent would it be a part of? S America?

I'm having a brain dead day, edited my original post.

[Fezant Pluckah]

I think you should also apologise to snoggledog, who now thinks the Middle East is NOT in Asia

[Fidgits]

grumbledoak said:

Plotloss said:

We've borrowed it, largely from Asia.

^^^ That.

And your kids will have to pay it off. Nice.

thats okay, im not having kids, so your kids will have to pay off my share...


thanks btw

[Civilian47]

Middle East is definitely in Asia (it says so on Wikipedia)*

• Sorry for any confusion this may have caused.

Edited by Civilian47 on Monday 13th October 16:07

[james_tigerwoods]

Don't be ridiculous.




It's coming from Nigeria - don't you read your emails?

[grumbledoak]

Fidgits said:

thats okay, im not having kids, so your kids will have to pay off my share...

No worries; they'll get to choose your 'home'. I'm quite sure they'll be gracious.

[Mr Whippy]

Basically central bank puts a few 0's on the end of some numbers on a computer, some with new 1's at the start.

Then they send the government a direct debit mandate, with compound interest on top, and we pay it all back in taxes over a very very long time.

Dave