The 60 Bn the PBR didn't mention...

[Doggy Styles]

here's one for you all, it has been stated above:

'So Britain will apparently have to pay 60Bn in 2013-14 just to service the debt'

who or shall we better say, whom, will be the recipient of the 60bn interest payments every year ?

Bond holders.

When we eventually go to the IMF, will we have to pay them back?

[DimPrawn]

Bond holders.

When we eventually go to the IMF, will we have to pay them back?

Yes, but when it all goes tits-up, a Euro will cost about £100, so they will get feck all back.

1. Build up enormous debt.
2. Go bust.
3. Destroy your currency.
4. Join the Euro.


Result, your debt is now tiny, sorted!

[Diver]

Yes, but when it all goes tits-up, a Euro will cost about £100, so they will get flip all back.

1. Build up enormous debt.
2. Go bust.
3. Destroy your currency.
4. Join the Euro.


Result, your debt is now tiny, sorted!

Wrong!

Go to war, Lose, get restoration aid from the victors.

Boomed

[AtW]

Yes, but when it all goes tits-up, a Euro will cost about £100, so they will get flip all back.

1. Build up enormous debt.
2. Go bust.
3. Destroy your currency.
4. Join the Euro.


Result, your debt is now tiny, sorted!

If euro will cost £100, then pint of milk will cost about the same...

[shaunbhoy]

Nothing to worry about here. Another term for New Labour and we will have attained Third World status...............at which point all of our debt can simply be written off.
All part of GB's "cunning plan"!!

You heard it here first.

[AtW]

who or shall we better say, whom, will be the recipient of the 60bn interest payments every year ?

Bank of England probably (so that makes things ok?) - it's them who buys gilts (directly and via bankers who pocket big fat cheque for doing risk free operation)

[the_duderama]

Loads here on CUK are rampant lefties, so I would expect quite few.

Then raise the scarlet standard high,
Within its shade we'll live and die,
Though cowards flinch and traitors sneer,
We'll keep the red flag flying here.

[Tarquin Farquhar]

You may scoff ignorantly, but why then did right-wing leaders around the world follow Brown's plan to save their economies? Because it was a grave crisis and Brown found the solution.

Thank god it wasn't the tory know-nothing Bullingdon Bullies in charge. We may not be so lucky next time: Cameron may get in despite being a twat who said we should tighten money, not loosen it (so why didn't Merkel and Sarkozy try that?). I advise dusting off passports if that happens. And don't even dream that you are "small business" therefore upper-middle class and exactly Cameron's type. You're still f*in peasants as far as I can see.

[shaunbhoy]

You may scoff ignorantly, but why then did right-wing leaders around the world follow Brown's plan to save their economies? Because it was a grave crisis and Brown found the solution.

Thank god it wasn't the tory know-nothing Bullingdon Bullies in charge. We may not be so lucky next time: Cameron may get in despite being a twat who said we should tighten money, not loosen it (so why didn't Merkel and Sarkozy try that?). I advise dusting off passports if that happens. And don't even dream that you are "small business" therefore upper-middle class and exactly Cameron's type. You're still f*in peasants as far as I can see.

Brown's "cunning" plan you mean? Keep on borrowing till the pips squeak?


What a trumpet!!

[Gonzo]

So Britain will apparently have to pay 60Bn in 2013-14 just to service the debt. How long before default?

It gets worse.

If the UK's sovereign credit rating is down-graded then the debt will cost more to service.

Public spending is more difficult to reign in than it used to be due to the amount that is committed via PFI schemes.

The prognosis is not good. Higher taxes are going to be unavoidable.

EDIT: I have hunted high and low for some sensible forecasts of PFI spending and the only place that I have found some useful looking numbers are in a spreadsheet on the treasury website.

http://www.hm-treasury.gov.uk/ppp_pfi_stats.htm

At between £5 and £9 billion per year for the next twenty years that is only about 1% to 1.5% of the total spending so maybe not so much to get worked up about.