All 2 entries tagged Debt
November 19, 2008
Dizzy has found some great quotes from recent budgets.
“borrowing for this year and future years is therefore £27 billion (2003), £24 billion (2004), £23 billion (2005), £22 billion (2006) and £22 billion (2007).” - Budget 2003
“borrowing for this year will fall to £34 billions (2004) and in future years fall further to £33 billions (2005), falling again to £29 billions (2006), then falling to £28 billions (2007), £24 billions (2008) and £22 billions (2009). - Budget 2004
“[it] will be £34bn (2005) this year falling to £32bn (2006) next year, then falling again to £29bn (2007), falling to £27bn (2008), then to £24bn (2009) and then £22bn (2010).” - Budget 2005
“[borrowing] will be £37bn this year, £36bn next year, then £30bn, falling to £25bn, £24bn and £23bn in 2010-11” - Budget 2006
“the figure for [borrowing] this and future years will be £35 billion (2007) – over 1 billion less than forecast at the Pre Budget Report – then 34 (2008), 30 (2009), 28 (2009), 26 (2010) and 24 billion (2011)” - Budget 2007
If Gordon Brown were a normal person, would he need a) advice from the Citizens Advice Bureau, or b) sectioning?
February 11, 2006
In today's Guardian:
Imagine you are an investor who has bought financial assets in a country that's running a trade deficit of 5.8% of its national output. Imagine, also, that the size of that deficit grew by 17.5% last year…The country we are talking about is not Mexico or Thailand but the United States, which yesterday announced a record trade deficit of $726bn (£415bn) for 2005…Clearly, trade deficits of 6% of GDP are unsustainable. Clearly, the dollar has to fall. Simple game theory suggests that there is a real advantage in being the first central bank to move.
So the American economy looks set to do a Peter Kay-esque running bomb and surely we're all going to get soaked?
Well, yes and no. Stock markets will take a big hit if economies – especially Asian ones – start selling dollars. But in reality, this is surely just going to be a blip. Won't there be a certain amount of relief in the City and other institutions if the inevitable finally happens and the dollar finally comes down to a more sustainable position? Won't it reel in President Bush's unrealistic low-tax, high-spend philosophy? Won't investors realise that not a huge amount of our trade takes place with the US, and that as long as we have strong trading links with the EU, everything will be alright? And won't it be seen as a boost to our economy, as investment here might suddently appear more attractive?
Or am I being a hopeless optimist?