Reply to: Where is all this bailout money coming from - discuss?

[Andy2]

All new money is Western economies is released as debt.

If, tomorrow, everyone decided to pay back their debts at once there would not be enough money to do so.

There is always WW3 to end all the debts of the western world
sorted

[NoddY]

All new money is Western economies is released as debt.

If, tomorrow, everyone decided to pay back their debts at once there would not be enough money to do so.

[sappatz]

Bankss

money does not grow on trees
this money to support scottish banks is coming out of your pockets, one way or another !

[SantaClaus]

I hope they don't get the permies at clientco to code it! They would probably do :-

SET balance = balance - 1000000000000

Or worse......

ha ha ha! Or worse, devise some financial instrument for it, 1000 times more complicated than Credit Default Swaps.

[BrilloPad]

The banks money is just a number in a database in the bank.

So all that's happened is:

UPDATE account
SET balance = balance + 1000000000000



Simple. Bank now has loads of money again and we didn't give a penny of our money to them.

Boomed!

HTH

I hope they don't get the permies at clientco to code it! They would probably do :-

SET balance = balance - 1000000000000

Or worse......

[SantaClaus]

aha so the government are just producing bonds out of thin air to raise money for the bail out (the government issued the bond to someone .. that someone loans the government money and the gov then pay coupon interest on the bond and then at maturity repay the original loan amount) ... they don't seem to be physically printing money which is a good thing, instead they are just creating more debt for the tax payer for the next number of x years !!

oh flip me not more government debt .. this will be like our National Debt after WW2 that we were paying into the 80s/90s.

suckers !!!!! you are all a bunch of suckers !!!! yeaaaahhhhh ratfans !

Now, any offers to loan the govt. billions of pounds, at lets say... 4 1/4 % interest.
BN66 CTD payers, please sit down!

[eliquant]

More info:

http://www.dmo.gov.uk/documentview.a...s/pr141008.pdf

aha so the government are just producing bonds out of thin air to raise money for the bail out (the government issued the bond to someone .. that someone loans the government money and the gov then pay coupon interest on the bond and then at maturity repay the original loan amount) ... they don't seem to be physically printing money which is a good thing, instead they are just creating more debt for the tax payer for the next number of x years !!

oh feck me not more government debt .. this will be like our National Debt after WW2 that we were paying into the 80s/90s.

suckers !!!!! you are all a bunch of suckers !!!! yeaaaahhhhh ratfans !

[GreenerGrass]

More info:

http://www.dmo.gov.uk/documentview.a...s/pr141008.pdf

[SantaClaus]

thanks all! confirms what I previously thought.

We're Fu$%£d!!!

[Viktor]

Yes but it's the taxpayer that guarantees the money. It's like the Gov saying: "if this does not work, we have the money coming from the taxpayer as a guarantee" - in the same way you go to the bank to get a loan on the basis that you have some rental income for ex.

So if the Gov f(*& up you will pay.

HTH

Somebody else understands that all that was tulip re the Rock and each taxpayer being owed 1300 quid was just media propaganda ................. at last !!

[Cyberman]

It is not coming from the taxpayer, and anyone who told you that is misleading you.

In effect, IOUs are being issued, with the taxpayer as guarantor. It's a leveraged buyout. Especially sweet for Lloyds TSB, since the TSB was sold by the Thatcher government despite the fact that they didn't own it.

Edit: actually DP put it concisely above

Somebody else understands that all that was tulip re the Rock and each taxpayer being owed 1300 quid was just media propaganda ................. at last !!

[Paddy]

Yes, we've been told its coming from the taxpayer.
But where are these trillions of dollars/pounds/euros coming from immediately.
So I guess they must be printing money

Dilution of currencies and hyper-inflation coming to this country very soon

Now where did I put my gold bullion.

Yes see my previous posts. It was also confirmed by an economist on R4.
Printing money is the only way out however, the government doesn't have tp print the whole amount. Only enough to pay cash to those who want it. The rest can be figures on paper.

It is the government that causes inflation not consumers.

[Viktor]

DimPrawn, this is one of the best and concise explanations about how gov bailouts are done.
Simple things are always hard to understand...

The banks money is just a number in a database in the bank.

So all that's happened is:

UPDATE account
SET balance = balance + 1000000000000



Simple. Bank now has loads of money again and we didn't give a penny of our money to them.

Boomed!

HTH

[HairyArsedBloke]

Dilution of currencies and hyper-inflation coming to this country very soon

Yes.

[expat]

Yes, we've been told its coming from the taxpayer.
But where are these trillions of dollars/pounds/euros coming from immediately. The taxpayer hasnt suddenly received a higher bill.
The govt. doesnt have this sort of money in reserves.
They cant borrow as no-one has the money.
Issue bonds maybe? Against what? Buckingham palace
So I guess they must be printing money

Dilution of currencies and hyper-inflation coming to this country very soon

Now where did I put my gold bullion.

It is not coming from the taxpayer, and anyone who told you that is misleading you.

In effect, IOUs are being issued, with the taxpayer as guarantor. It's a leveraged buyout. Especially sweet for Lloyds TSB, since the TSB was sold by the Thatcher government despite the fact that they didn't own it.

Edit: actually DP put it concisely above