Quote:
Originally Posted by Hugh
But a change in policy could lead to the UK's credit rating being downgraded, which would mean the interest rates on all the money we, as a country are still borrowing to pay for current spending plans, would rise, leading to higher debts and probably more cutbacks.
We can't carry on, as a country, spending money we don't have.
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Per above, tearing up the BoE's gilts it bought with magical money would reduce the national debt substantially and George isn't making much inroads into the deficit anyway.
The cynical wotsit is, along with the BoE, eroding the debt and deficit with inflation. At 5.6% per year on official figures although of course we all know that's not the case for those of us who don't eat iPods and flat screen TVs.
Perhaps a good question for Merv the Swerve would be to ask why his pension is now 93% index linked, inflation proofed if you like, if he's so confident. This up from as I remember it 85% 12 months ago. What an arse.