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re Proposals for high Government Borrowing

Discussion in 'Personal' started by MAGAorMIGA, Nov 14, 2019.

  1. MAGAorMIGA

    MAGAorMIGA Star commenter

    In an era when interest rates and loan repayments are zero, isn't it stupid to lend rather than to borrow? Governments of whatever political stripe should take advantage of this unprecedented situation and borrow till they're black in the face. Zero interest rates and no inflation in the world globalised economy. It's a no brainer.
     
    Oldfashioned likes this.
  2. Aquamarina1234

    Aquamarina1234 Star commenter

    Isn't that what Boris and Corbyn are promising to do with knobs on?
     
    needabreak likes this.
  3. lanokia

    lanokia Star commenter

    Our borrowing repayments are £50 billion a year...

    You're "No Brainer" is just dumping future generations with ever increasing amounts of debt.
     
    needabreak, Kandahar and nomad like this.
  4. Scintillant

    Scintillant Star commenter

    Yes.

    U.S. National Debt Hits Record $22 Trillion

    It's almost like the economic system isn't working.
     
    MAGAorMIGA likes this.
  5. florian gassmann

    florian gassmann Star commenter

    When they do that, lenders lose confidence that they will be repaid and so adjust rates upwards. What once seemed very affordable suddenly becomes impossible to repay and so lenders get even more nervous and pump up rates yet again. And so he circle continues until the currency collapses.
     
  6. Duke of York

    Duke of York Star commenter

    Or the banks fail, then get bailed out by squeezing the poor and the banks carry on as though nothing happened.
     
  7. LondonCanary

    LondonCanary Star commenter

    It is stupid to lend rather than spend. Sweden Denmark Switzerland and and the ECB have negative interest rates to encourage investment
     
  8. LondonCanary

    LondonCanary Star commenter

    They don't. Lending is much more controlled by FCA rules.
     
    needabreak likes this.
  9. MAGAorMIGA

    MAGAorMIGA Star commenter

    Point to where this is actually happening.
     
  10. florian gassmann

    florian gassmann Star commenter

  11. MAGAorMIGA

    MAGAorMIGA Star commenter

    Right let's try again with a major industrialised country with a sovereign, fiat currency.
     
  12. needabreak

    needabreak Star commenter

    Do you think that interest rates are fixed or have you considered the effect of borrowing in the longer term?

    Do you think crowding out is a good thing? If so would a command economy suit you better?

    Does the recent economic history in Spain and Greece not concern you?
     
  13. florian gassmann

    florian gassmann Star commenter

    Such countries do not generally over-extend their borrowing in the way that Labour are planning (I see they've just said that they will spend another £20 billion on part nationalising BT).
     
  14. needabreak

    needabreak Star commenter

    That's interesting. It would appear that political doctrine does in this case override the needs of 'the poor'. I haven't heard one person on a low income or those who speak on their behalf complain about the cost of the Internet... Landlines are dying and the many are increasingly using mobile data... Their concern over BT makes little sense in today's world, what world are they planning for?
     
    Jamvic likes this.
  15. Jamvic

    Jamvic Lead commenter

    “Free Broadband for all” (insert smug smile).

    “I’ll see your free Broadband and raise you a Beeching reversal and some pubs my friend” (insert cunning cackle).

    Good grief! :oops:
     
    needabreak likes this.
  16. needabreak

    needabreak Star commenter

    I fear for a lack of operational far left political economic doctrine the political Left have hijacked Keynes on the basis that in the long run we're all dead. Still no innovative economic thinking so we are left with the same old choices... Some less thought out than those already implimented by their political opposition.

    Jam yesterday? Jam tomorrow? Jam today?
     
  17. Stiltskin

    Stiltskin Lead commenter

    Depends where they borrow the money from. Bonds and gilts can have fixed rates.
     
  18. needabreak

    needabreak Star commenter

    I can see the queue from here... No wait...
     
  19. needabreak

    needabreak Star commenter

    Who will buy into that? Who will provide the loan funds not for profit to fund the UK Government's renationalisation programme?
     
  20. Stiltskin

    Stiltskin Lead commenter

    Lots of people/investors/companies do - you can lend money to the government here:
    https://www.dmo.gov.uk/
     

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