Wednesday, 6 November 2019

Election promises? Yes, believe it!


Yep, election time! And friends, we already have begun hearing the most ludicrous political statements. The (male) co-leader of the Green Party wants to borrow 100 billion pounds every year for 10 years and thinks this will save the planet. Sounds good? Yes, I think it sounds too good. In fact I will have a look at my bank account to see if I can help. God help us for this kind of idiocy. Apparently hundreds of thousands of jobs will be created, in other words a type of social engineering as these jobs will then be paid from the borrowing? Where in all honesty do these people live? Oh yes, we will concrete over the UK. This guy has evidently forgotten the UK is not just the only country combatting climate warming. It would be much better to reign in the likes of the US, Russia and China. Asia is still mostly powered by coal in huge, gigantic quantities. I would agree one thing he said, we need to combat climate change and we need to do it now. Forget targets like 2050, that’s too late. But also we cannot just borrow those eye-watering sums. Still with one MP why worry? Nevertheless I want to see and hear the good Boris say and speak more about the need to combat and how to pay for combatting climate change. 

Ed 7/11/2019
It is deeply worrying to hear all the parties' ideas that include borrowing hundreds of billions.
If the Labour party wins the election or wins because of a hung parliament we will borrow so much that our repayments of the interest  annually will exceed the £54billion we pay today.  
Interest payments for £100billion extra borrowing would be £ 2billion at 2%, more if the interest rates are rising because of our weaker position as far as the money markets are concerned.
But even more worrying is the debt we will put on to the backs of our children and grandchildren because the debt one way or another has to be paid back as well. Perhaps in stages but nevertheless it has to be done sooner or later.
I am afraid that we will begin to think of an eye-watering debt of up to £3 trillion!!!!  Some politicians we have in this country, they must have taken lessons from the Americans. Another simple question is - where does all that money come from? Yes, investors but there has to be an end somewhere? Anyone?

Ed 9/11/2019
And talking of borrowing through the medium of Govt Bonds they forget one of the most important issues. How can it be guaranteed investors will actually buy them? The amounts mentioned by the relevant political parties, we are talking billions upon billions assumes that the amount  of bonds to be produced will be taken up. Also one of the rules of commerce, supply and demand will come to the fore. Many bonds, lower returns and higher interest to make them interesting! Wow, some financial experts we have in political parties.

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