Reply to: Oh Dear - The 'hidden' jobless

[Tarquin Farquhar]

BofE does not invest into sterling - it prints them.

Now whoever accepts that printed paper in exchange for goods and/or services actually invests into sterling.

HTH

Quantitative Easing is doing exactly that. Well, in effect.

[The_Equalizer]

Well you say that, yet the pound seems to be appreciating in value, if anything. You would have thought the shrewd currency speculators would have already pushed the pound down to nothing?
I reckon there's a big oil-field about to be discovered under Wiltshire...

Or may be oil in the Falklands Islands?

[Doggy Styles]

It last happened 2000. But:

"Delivering his 2000 Budget speech, Mr Brown made clear that money spent on debt and welfare was money lost to the public services. He said: "Our promise was to reduce the costs of failure - the bills for unemployment and debt interest - in order to reallocate money to the key public services.""

[Doggy Styles]

"Benefit payouts will exceed income tax revenue

The state will pay out more in social security benefits than it raises from workers in income tax this year.

Treasury figures show that welfare payments will exceed income tax receipts by almost £25 billion. Normally, income tax receipts comfortably cover the benefits bill."

How often has this ever happened before in the UK?

[RichardCranium]

http://www.telegraph.co.uk/news/ukne...x-revenue.html

Oh. tulip.

Benefit payouts will exceed income tax revenue

The state will pay out more in social security benefits than it raises from workers in income tax this year.

Treasury figures show that welfare payments will exceed income tax receipts by almost £25 billion. Normally, income tax receipts comfortably cover the benefits bill.

[AtW]

Who is investing in Sterling? The BofE. I.e. us. And ISTR that stops next month.

BofE does not invest into sterling - it prints them.

Now whoever accepts that printed paper in exchange for goods and/or services actually invests into sterling.

HTH

[Emigre]

Linky?

http://www.statistics.gov.uk/glance/#labour

http://www.telegraph.co.uk/news/ukne...x-revenue.html

[Tarquin Farquhar]

Who is investing in Sterling, apart from the UK taxers payer's children's grandchildren and today's savers? If it's people who know what they are doing, why isn't the future doomed price built in to today's price? Perhaps investors don't care about long-term and speculate short term, or maybe they haven't got a clue what's going on either?

Who is investing in Sterling? The BofE. I.e. us. And ISTR that stops next month.

[TimberWolf]

When the truth sinks in, it's sterling.

Who is investing in Sterling, apart from the UK taxers payer's children's grandchildren and today's savers? If it's people who know what they are doing, why isn't the future doomed price built in to today's price? Perhaps investors don't care about long-term and speculate short term, or maybe they haven't got a clue what's going on either?

[DimPrawn]

Well you say that, yet the pound seems to be appreciating in value, if anything. You would have thought the shrewd currency speculators would have already pushed the pound down to nothing?
I reckon there's a big oil-field about to be discovered under Wiltshire...

That's because unemployment is falling and the UK is best placed in the world for the recovery, blah.



When the truth sinks in, it's sterling.

[HairyArsedBloke]

Linky?

Sminki

[xoggoth]

Hey, I'm economically inactive! I thought Iwas retired.

[Churchill]

So that's 12.5m on state pension, 8m unknown unknowns, a total of 6m on unemployment/jobseekers/incapacity benefit, 6m employed by the state any others?

I saw that 22m pay income tax and 25m claim benefits and that since June last year income tax doesn't cover even the benefits bill - and its got worse since then.

Linky?

[MrMark]

How long can this state of affairs last?

How long before investors realise buying UK government debt is madness?

How long before the collapse of sterling?

Not long.

Well you say that, yet the pound seems to be appreciating in value, if anything. You would have thought the shrewd currency speculators would have already pushed the pound down to nothing?
I reckon there's a big oil-field about to be discovered under Wiltshire...

[DimPrawn]

So that's 12.5m on state pension, 8m unknown unknowns, a total of 6m on unemployment/jobseekers/incapacity benefit, 6m employed by the state any others?

I saw that 22m pay income tax and 25m claim benefits and that since June last year income tax doesn't cover even the benefits bill - and its got worse since then.

How long can this state of affairs last?

How long before investors realise buying UK government debt is madness?

How long before the collapse of sterling?

Not long.