Thursday, 15 November 2018

Money, money. money, it's all so funny...

Anyone for a bit of borrowing? Borrowing cash that is. Well, with Christmas around the door a few grand would be welcome? Yes, but I just read in a daily newspaper that this, our beloved country is in deep, deep debt. In fact the total debt stands at £5.1 trillion! That is £2 trillion of the national debt (government) and the rest represents borrowing by households and companies. Not bad eh? And moreover this debt is allegedly going up to over £6 trillion (£6,000,000,000,000) by 2023. It is a rather interesting thought but who lent us that sort of money? Where does it all come from? The banks lend cash and with rich people/or organisations like pension funds buy silver/gold gilts (the government issued bonds) but that surely is still not enough to cover such a debt? So, it seems that a second grand economic finance collapse is just around the corner. A day of reckoning. That will bankrupt quite a number of people I suppose. The various governments, except the UK’s government, of the western countries seem oblivious to this. At least in the UK, government has reduced its debt a bit, and it is still falling but it also has created a lot of animosity. But how do people think you pay of debt? It is the same for governments, you have to make savings! It is never easy. But at the same time we should be careful not to cut essential services too much. It is a problem because those in power do not really want to make changes, especially not in their own pay-packets and extras. The bill is always paid by those who can least afford it! Control of money is an art that few people master, there are so many ways to obtain cash. Pensioners now are able to cash in some of their pension pot but quite a few lose it as fast as it comes in due to false investment promises, or people can cash in on property values. Well, fortunately in the Rhondda that is not a very big problem as property values are low, in fact really too low to make much of a difference in debt. There is little point to borrow money on the value of your house. Eventually it must be paid back one way or another. It would be much better to organise lives in such a way that debt is not the overriding factor in anyone’s life. Easier said than done? Well, what IS easy in life?

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