Britian heads for trouble

[Mega]

http://www.bloomberg.com/apps/news?p...zuE&refer=home

Bye,Bye Blighty!
Mike

[FRED]

Re: Britian heads for trouble

http://www.bloomberg.com/apps/news?p...zuE&refer=home

Bye,Bye Blighty!
Mike

The flaw in the UK as Argentina argument is that the UK owes its debts in its own currency while Argentina did not. The UK can always print money to repay its debts, and has.

[jpatter666]

Re: Britian heads for trouble

Hi Fred,
Would this not be of major concern to anyone in the Eurozone then?

[hayekvindicated]

Re: Britian heads for trouble

The flaw in the UK as Argentina argument is that the UK owes its debts in its own currency while Argentina did not. The UK can always print money to repay its debts, and has.

However, British banks have massive debts in foreign currencies - and any currency debasement by the British government will hit them quite hard.

[Mega]

Re: Britian heads for trouble

Fred
Am sitting in the office of my workshop in Liverpool...............its been 5 weeks since any jobs went out. Same next door both ways & across the car park.

Units are starting to appear...."To Let/For Sale"........my best mate Steve, his wife works in a legal office & she on 12% pay cut + told she might be let go by Oct.

Its coming apart.
Mike

[rabot10]

Re: Britian heads for trouble

Fred
Am sitting in the office of my workshop in Liverpool...............its been 5 weeks since any jobs went out. Same next door both ways & across the car park.

Units are starting to appear...."To Let/For Sale"........my best mate Steve, his wife works in a legal office & she on 12% pay cut + told she might be let go by Oct.

Its coming apart.
Mike

Mike Fred

Hey it’s all just a made up money game by the Banksters, my solution is to just wipe out all the OLD debt and start all over again So we sheep can run up new debt at 22%– works for me. I'm getting some more 50 LCD TV's and (Stupid Me) I got rid of the BMW M6 - I say god dam I'm getting a new one, I also think that a 9 thousand sf house would be nice, let's party!!!!!!!! Who’s in?

rick

[bpwoods]

Re: Britian heads for trouble

Ditto in Ireland. Slow, slow, quick, quick, slow. Deflation is major concern at moment (prices of goods and services). The monetary deflation I cannot comment on - ECB is lending to commercial banks at 1%, and they are 'carrying' to 4%!!! Food prices are falling - slow, slow, as is private property. Food will have to bottom out soon (too close to oil), but property will slowly sink into a swamp of negative equity. Commercial is in the dustbin. Real interest rate is at 6%!!! Gov has introduced a levy on income (to pay for the bank bailout!). Employment has shown the fastest decline since records began.

Brian P

[ThePythonicCow]

Re: Britian heads for trouble

Mike Fred

Hey it’s all just a made up money game by the Banksters, my solution is to just wipe out all the OLD debt and start all over again

Wipe out which debt -- all of it, public and private? Dang -- if I knew that was going to happen, I'd max out my credit cards the day before with cash advances. Then the next day, I get to keep the cash, and forget the debt. .

Guess I'd buy a new BMW 750i on credit as well. .

Slightly more seriously, everytime the government messes with who has what and who owes whom what and what the 'real' or 'dollar denominated' value of any debt or savings is, then someone wins and someone loses.

But really we all lose, because the rule of law, contracts and property is degraded one more time by government mandate, which usually favors the most powerful.

Quit messing with the system!

[GRG55]

Re: Britian heads for trouble

However, British banks have massive debts in foreign currencies - and any currency debasement by the British government will hit them quite hard.

Why do banks have debts? I thought they were supposed to lend money, not borrow it [unless, of course, they are "borrowing" from taxpayers...a popular pastime these days...but such borrowing would be in the home currency].

So have British banks been issuing bonds in currencies other than the Pound?

[WildspitzE]

Re: Britian heads for trouble

Why do banks have debts?

Because they can't attract enough deposits?

[*T*]

Re: Britian heads for trouble

Why do banks have debts? I thought they were supposed to lend money, not borrow it [unless, of course, they are "borrowing" from taxpayers...a popular pastime these days...but such borrowing would be in the home currency].

So have British banks been issuing bonds in currencies other than the Pound?

Banks borrow at one rate (usually short maturity) & lend at another (usually longer maturity), making on the spread.
Deposits are just one form of bank borrowing (zero maturity).

British banks are very international, both lending and borrowing overseas.

[hayekvindicated]

Re: Britian heads for trouble

Why do banks have debts? I thought they were supposed to lend money, not borrow it [unless, of course, they are "borrowing" from taxpayers...a popular pastime these days...but such borrowing would be in the home currency].

So have British banks been issuing bonds in currencies other than the Pound?

Traditional banking has been all about taking deposits and lending. Modern banking is that and then some (as we all know). When I say debts, I am not limiting myself to loans (traditional debt), I mean all payment obligations (including in the derivatives market), which is in effect also debt (unsecured). A chunk of this is owed to other British banks but mostly to non-British banks and is not denominated in Sterling. Some of it is in Euros, most of it in USD and some in Yen etc.