Idiot question on economy

**AtW** · 20 October 2008, 16:53

Originally posted by xoggoth View Post

who is he borrowing it from?

In short - from future generations.

**xoggoth** · 20 October 2008, 16:57

Yeh, but sort of more specifically. If a new hospital is being built do the contractors get an IOU from the unborn?

**BrilloPad** · 20 October 2008, 16:58

I am trying to work out if it from sovereign wealth funds or printing more.

**mailric** · 20 October 2008, 16:59

so u got a contract building a hospital! dont suppose you need any business analysts 'cos theres **** all else out there at the moment?????

**AtW** · 20 October 2008, 17:01

It's a clever accounting scam that is legal on paper and looks respectable because it comes from the Govt, BoE etc.

Generally speaking in good times Govt can issue bonds that usually get very high rating but attract low interest rate, in current environment of money flowing from depreciating assets it might seem like a good idea, the problem is that if you don't have genuinely attractive conditions to get foreign investment into these, then you'd be stuck with local market - however if you print money to bail them out and have a whisper to get those money invested into your own bonds, then effectively Govt is financing itself using a scam that seeminly minimises inflationary pressures.

The future generations will pay dearly for all this, usually in such cases high inflation is the solution but in this case I think we are looking at Japanese scenario with deflation.

**TykeMerc** · 20 October 2008, 17:03

Originally posted by mailric View Post

so u got a contract building a hospital! dont suppose you need any business analysts 'cos theres **** all else out there at the moment?????

Sorry I expect a Business Analyst to write in proper English without me needing to correct the documents before presenting to the client. I certainly wouldn't use your services based on your post.

**AtW** · 20 October 2008, 17:05

Originally posted by TykeMerc View Post

without me needing to correct the documents before presenting to the client.

You'd be out of job then?

**mailric** · 20 October 2008, 17:05

on a more serious note, i think theres an international monetary fund that someone keeps under their mattress.... its a big piggie bank with trillions of cash stashed away for when a country hits hard times. The interest rates are ****** huge and the future tax payers of the country who call on this cash really do take a huge hit for a number of years to pay it back.

so, while the media brag about how good browngimp is doing managing the country through such difficult times.... all he is really doing is borrowing a shed load of cash of the local money shark and by the time they come knocking on our door for it back, he'll be well gone and the stupid voters will have forgotten all about it.

interestingly, the last time this fund was used was for bailing the good old UK out in the late 60s (i think).

ps: this is only my understanding and i could be wrong as i know **** all about politics and economics.... though i do read the daily mail... sorry.

**BrilloPad** · 20 October 2008, 17:11

Originally posted by mailric View Post

on a more serious note, i think theres an international monetary fund that someone keeps under their mattress.... its a big piggie bank with trillions of cash stashed away for when a country hits hard times. The interest rates are ****** huge and the future tax payers of the country who call on this cash really do take a huge hit for a number of years to pay it back.

so, while the media brag about how good browngimp is doing managing the country through such difficult times.... all he is really doing is borrowing a shed load of cash of the local money shark and by the time they come knocking on our door for it back, he'll be well gone and the stupid voters will have forgotten all about it.

interestingly, the last time this fund was used was for bailing the good old UK out in the late 60s (i think).

ps: this is only my understanding and i could be wrong as i know **** all about politics and economics.... though i do read the daily mail... sorry.

last time was late seventies - 76/77.

high inflation stopped them just printing money.

IMF demanded government spend less money.....

Idiot question on economy