UK public debt soars to record £2 trillion
Discussion
From the independent : http://www.independent.co.uk/news/uk/politics/uk-p...
The Treasury is to release figures showing that public-sector pension liabilities have increased by 30 per cent in just two years to £1.1trn. It means that total public debt is now nearly £2trn.
Still think public sector pensions are affordable?
The Treasury is to release figures showing that public-sector pension liabilities have increased by 30 per cent in just two years to £1.1trn. It means that total public debt is now nearly £2trn.
Still think public sector pensions are affordable?
Yes. Anything is affordable when you can just print the money.
The problem is an unbalanced economy where moral hazard and indolence are rewarded, this is why the public sector needs slashing down to size. Not because its unaffordable.
Clearly if the government can raise debt/money/credit at will then it has no limit to its ability to spend. Unlike European countries which are consumers of currency rather than issuers.
The problem is an unbalanced economy where moral hazard and indolence are rewarded, this is why the public sector needs slashing down to size. Not because its unaffordable.
Clearly if the government can raise debt/money/credit at will then it has no limit to its ability to spend. Unlike European countries which are consumers of currency rather than issuers.
ringram said:
Yes. Anything is affordable when you can just print the money.
....
Clearly if the government can raise debt/money/credit at will then it has no limit to its ability to spend. Unlike European countries which are consumers of currency rather than issuers.
My knowledge on economics and world finances has always been pittiful, but from what you're saying here, does it mean the UK can print as much money as it wants and keep spending as much money as it wants with little regard for its debt to other countries?....
Clearly if the government can raise debt/money/credit at will then it has no limit to its ability to spend. Unlike European countries which are consumers of currency rather than issuers.
If this were the case then why is the government not increasing spending on many public services for the future and why aren't our roads and other infrastructure the best in the world?
AJI said:
My knowledge on economics and world finances has always been pittiful, but from what you're saying here, does it mean the UK can print as much money as it wants and keep spending as much money as it wants with little regard for its debt to other countries?
If this were the case then why is the government not increasing spending on many public services for the future and why aren't our roads and other infrastructure the best in the world?
Basically yes, though of course inflation would take off if you went too mental. (hmm)If this were the case then why is the government not increasing spending on many public services for the future and why aren't our roads and other infrastructure the best in the world?
The downsides are public services are inefficient for the most part, so outsourcing some is a better idea.
But Im with you on the roads and infrastructure idea, again subject to doing it efficiently and cost effectively.. perhaps via tender etc.
NoelWatson said:
Worse, virtually nobody understands the difference between a sovereign fiat currency and euro zone countries etc. Including Allister himself.I believe Modern Monetary Theory properly explains the way a sovereign monetary system works, not the legacy/wrong thinking of economists still stuck on the gold standard.
Taxes and bond sales do not fund government debt. They are simply there to suck up reserves and excess funds in order to manage inflation etc. Balanced (or surplus) government accounts in a recession is itself recessionary and will compound the problem.
Gassing Station | News, Politics & Economics | Top of Page | What's New | My Stuff