Quote:
Originally Posted by jfman
Have the amounts paid year on year increased massively as you claim?
Interest rates are at an all time low. The cost of debt has never been cheaper. Government debt generally isn’t paid in instalments the way a household loan is. As demonstrated the erosion in the real terms value of the debt by inflation incentivises the Government to never repay the debt - simply kick it down the road with further borrowing.
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The Bank of England has now asked banks to gear up for negative interest rates!!!
---------- Post added at 17:20 ---------- Previous post was at 17:17 ----------
Quote:
Originally Posted by OLD BOY
I don’t know about the instalments. Certainly, if our obligation is just to pay the debt at a fixed interest rate at the end of the period, it would be, as you intimate, a good ruse.
Let’s just hope interest rates remain low, then.
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Low interest rates negatively affect those without mortgages etc who have capital saved. If negative interest rates become a reality, it will actually cost people money to have savings!!
These are likely to be older people who are more likely to be Tory voters.
On the plus side, it might make people think it's not worth saving and they will spend it instead, which will help the economy. There again we may see people once again stuffing their savings in cash under their bed.