15-10-2020, 19:53
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#256
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Architect of Ideas
Join Date: Dec 2004
Posts: 10,529
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Re: Coronavirus
Quote:
Originally Posted by OLD BOY
You tell me. You are the economist.
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Spoiler alert: there isn't one.
Countries get by making interest payments and borrowing more to pay off the capital amounts down the road.
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15-10-2020, 20:05
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#257
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vox populi vox dei
Join Date: Mar 2007
Location: the last resort
Services: every thing
Posts: 13,740
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Re: Coronavirus
Quote:
Originally Posted by jfman
What's the current repayment plan on the £2 trillion of debt we've got so far?
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You're the economist,i'll leave it you to work out just keep your mitts of pensioners.
and beer.
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To be or not to be, woke is the question Whether 'tis nobler in the mind to suffer. The slings and arrows of outrageous wokedome, Or to take arms against a sea of wokies. And by opposing end them.
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15-10-2020, 20:05
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#258
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cf.mega poster
Join Date: Apr 2004
Location: Northampton
Services: Virgin Media TV&BB 350Mb,
V6 STB
Posts: 7,867
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Re: Coronavirus
Quote:
Originally Posted by jfman
Spoiler alert: there isn't one.
Countries get by making interest payments and borrowing more to pay off the capital amounts down the road.
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Until they get to the point like Greece, Ireland, Spain, Portugal, Cyprus did, and you can't borrow any more.
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15-10-2020, 20:06
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#259
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Architect of Ideas
Join Date: Dec 2004
Posts: 10,529
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Re: Coronavirus
This is where a Central Bank comes in handy.
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15-10-2020, 20:08
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#260
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vox populi vox dei
Join Date: Mar 2007
Location: the last resort
Services: every thing
Posts: 13,740
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Re: Coronavirus
Quote:
Originally Posted by jfman
This is where a Central Bank comes in handy.
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We're shut.
__________________
To be or not to be, woke is the question Whether 'tis nobler in the mind to suffer. The slings and arrows of outrageous wokedome, Or to take arms against a sea of wokies. And by opposing end them.
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15-10-2020, 20:10
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#261
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cf.mega poster
Join Date: Mar 2012
Posts: 4,098
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Re: Coronavirus
Quote:
Originally Posted by papa smurf
You're the economist,i'll leave it you to work out just keep your mitts of pensioners.
and beer.
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A huge for that one.
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15-10-2020, 20:20
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#262
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Rise above the players
Join Date: Mar 2008
Location: Wokingham
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Posts: 14,620
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Re: Coronavirus
Quote:
Originally Posted by jfman
Spoiler alert: there isn't one.
Countries get by making interest payments and borrowing more to pay off the capital amounts down the road.
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We can just forget what we need to pay back then.
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15-10-2020, 20:26
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#263
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Architect of Ideas
Join Date: Dec 2004
Posts: 10,529
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Re: Coronavirus
Quote:
Originally Posted by OLD BOY
We can just forget what we need to pay back then.
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You've clearly misunderstood the post if that is your reply. Try again.
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15-10-2020, 20:29
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#264
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cf.mega poster
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Re: Coronavirus
Quote:
Originally Posted by jfman
This is where a Central Bank comes in handy.
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The governments of Ireland etc, COULDN'T borrow. They ran out of money.
Link
Quote:
Ireland had already exhausted all other avenues of funding: “We had already raided the pension fund and borrowings on the sovereign bond markets – which we were priced out of – in 2010,” Namawinelake explains so the option considered to be the best in the circumstances was to issue a promissory note.
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Quote:
The repayment works like this: The government pays the money to IBRC, which gives it to the Central Bank of Ireland, which then destroys this money. This is done electronically in case you were thinking they were burning a huge wad of €100 notes on Dame Street.
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15-10-2020, 20:31
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#265
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Architect of Ideas
Join Date: Dec 2004
Posts: 10,529
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Re: Coronavirus
Quote:
Originally Posted by nomadking
The governments of Ireland etc, COULDN'T borrow. They ran out of money.
Link
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Countries in the Eurozone don't have the same luxury
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15-10-2020, 20:38
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#266
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laeva recumbens anguis
Cable Forum Team
Join Date: Jun 2006
Age: 67
Services: Premiere Collection
Posts: 42,276
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Re: Coronavirus
Quote:
Originally Posted by OLD BOY
Quote:
Originally Posted by Sephiroth View Post
What is the scientific advice trying to achieve? Is their mission to keep the number of simultaneous cases down?
They did that before and it's rampant now. Won't this just repeat itself?
Are we plebs wiser than SAGE?
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I think we are, Steph. But we haven’t been called upon to serve.
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Dunning-Kruger Effect in action...
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If my post is in bold and this colour, it's a Moderator Request.
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15-10-2020, 20:42
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#267
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Architect of Ideas
Join Date: Dec 2004
Posts: 10,529
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Re: Coronavirus
Quote:
Originally Posted by OLD BOY
We can just forget what we need to pay back then.
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I'll explain it simply.
I borrow £100 from Mick for 10 years. Interest is £1 a year (which I pay each year), however inflation reduces the real terms value of my debt by £2 a year.
In 2030 I borrow £100 (which is only worth £80 in 2020 prices) to repay Mick from Paul and carry out the same wheeze.
Rinse and repeat until by 2070 I'm looking around for the 2020 equivalent of about £25 to repay Maggy., Who I borrowed from in 2060. The debt has cost me £10 each decade to maintain. Total cost less than total borrowed in real terms.
Obviously interest rates and inflation are percentages but the principle applies where inflation exceeds interest rates - which is pretty much going to be forever now because we can't afford the house price crash bringing the whole pozni scheme down.
Last edited by jfman; 15-10-2020 at 21:16.
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15-10-2020, 20:43
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#268
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cf.mega poster
Join Date: Mar 2012
Posts: 4,098
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Re: Coronavirus
Quote:
Originally Posted by Hugh
Dunning-Kruger Effect in action...
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15-10-2020, 20:46
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#269
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cf.mega poster
Join Date: Apr 2004
Location: Northampton
Services: Virgin Media TV&BB 350Mb,
V6 STB
Posts: 7,867
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Re: Coronavirus
Quote:
Originally Posted by jfman
Countries in the Eurozone don't have the same luxury
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Those countries WERE in the Eurozone and they still had problems.
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15-10-2020, 20:47
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#270
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Architect of Ideas
Join Date: Dec 2004
Posts: 10,529
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Re: Coronavirus
Quote:
Originally Posted by nomadking
Those countries WERE in the Eurozone and they still had problems.
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No that's my point they don't have the same range of freedoms in controlling monetary policy for their needs.
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