Reply to: The 60 Bn the PBR didn't mention...

[Doggy Styles]

and bought shedload of gold at the peak price of $1200

Don't give Gordon ideas. That's the sort of dumb decision he makes.

[DimPrawn]

and bought shedload of gold at the peak price of $1200

I'm doing you all a favour here.

I post up my grand financial schemes so you can do the opposite and clean up.

[ThomasSoerensen]

Thomas,

how are things looking for you at Chocolate factory.

Milan.

I am trying to phase them out in orderfor me to concentrate on plan B. But they keep calling and when I hear the desperation in their voices I give in and come in and assist them for a few more days.

[Andy2]

that's why Dim sold all his Euros before the first devaluation of the £



Milan.

and bought shedload of gold at the peak price of $1200

[Scary]

So what's a safer bet in the short term (a year or two) Sterling or Euro's?

Sterling (well not really sterling silver, but normal silver bullion).

[AtW]

Hindsight is a wonderful thing.

Diversification and hedging ....

[DimPrawn]

that's why Dim sold all his Euros before the first devaluation of the £



Milan.

Hindsight is a wonderful thing.

[milanbenes]

that's why Dim sold all his Euros before the first devaluation of the £



Milan.

[DimPrawn]

So what's a safer bet in the short term (a year or two) Sterling or Euro's?

Short term both will be fine.

Longer term, sterling is going to go kapput, so Euro is safer.

IMHO.

[TimberWolf]

So what's a safer bet in the short term (a year or two) Sterling or Euro's?

[milanbenes]

Thomas,

how are things looking for you at Chocolate factory.

Milan.

[ThomasSoerensen]

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. Apply to Join the Euro.
5. Hope old creditors will let you join the good club
6. Run country on a balanced for the next 25 years.


Result, your debt is now tiny, sorted!

Fixed that for you

[Scary]

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!

You think there'll still be a Euro? Germany is going to bail out Greece, Spain, Portugal, Ireland etc? The Eurozone is still deferring its crisis.

[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.

[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!!