Why is the UK immune from bankruptcy?

[BlasterBates]

Can someone give a plausible explanation as to why Ireland, Portugal and Spain are basket cases, but the UK isn't.

When does the UK have to "roll over" it's loans?

[rsingh]

We have our own central bank that is able to print money. This option is not available for the PIIGS to take unilaterally. It has consequences but it can buy us time IF we have leaders that have the intellect to act for the greater good.

[TimberWolf]

And why didn't Ireland just go bankrupt instead of opting to be our and the EU's biatch for eternity?

[MrMark]

We have our own central bank that is able to print money. This option is not available for the PIIGS to take unilaterally. It has consequences but it can buy us time IF we have leaders that have the intellect to act for the greater good.

So did Iceland. So too, a couple of years back, did Argentina. I think the willpower NOT to print money is actually more important.
I understand the UK has a good track record on paying back debt (eg the world wars) so consequently we're seen as a good risk.

[NoddY]

So did Iceland. So too, a couple of years back, did Argentina. I think the willpower NOT to print money is actually more important.
I understand the UK has a good track record on paying back debt (eg the world wars) so consequently we're seen as a good risk.

Britain is a good risk because its populace are passive.

[AtW]

When does the UK have to "roll over" it's loans?

UK can print money like there is no tomorrow, it can also set its own interest rates.

As you can see all this makes UK totally invincible to past, current and any future financial storms.

Just make sure you buy a wheel barrow, you will need it.

[Platypus]

And why didn't Ireland just go bankrupt instead of opting to be our and the EU's biatch for eternity?

Because everyone who has Ireland Govt Bonds won't get paid - they lose their money. Ireland becomes a high-risk country to whom to lend money. Therefore they won't be able to borrow money on the markets again.

And that would be bad for us as apparently British banks are exposed to the tune of €80bn in Ireland. If that money is never repaid, our banks will be back cap in hand to the tune of €80bn which we can ill afford. A €7bn loan is small beer to help prevent such a calamity for our own economy. In fact, if Ireland goes tits up, likelihood is that Portugal and maybe Spain would follow. I doubt we'd be far behind

EDIT: where's spasguru to tell us we're all cretins and explain it properly?

[AlfredJPruffock]

The answer is easy - if you take it logically.

Its not just Britain - its GREAT Britain, because we are - and always will be - Great.

Exit stage left - to Land Of Hope and Glory ....

[TimberWolf]

UK can print money like there is no tomorrow, it can also set its own interest rates.

As you can see all this makes UK totally invincible to past, current and any future financial storms.

Just make sure you buy a wheel barrow, you will need it.

Ireland will be laughing if it has to pay us back in Pounds then. We might have insisted they pay back with today's equivalent gold value.

[Pickle2]

So did Iceland. So too, a couple of years back, did Argentina.

Right. But much of their exposure was denominated in other currencies (e.g. Dollar/Euro etc).

So you can print as many Krona's as you want, but it wont make it any easier to pay back your dollar debts. For example, Iceland's debt in Kronas doubled in 2008 as their currency fell.

Uk still has most of its national debt in GBP. So printy printy!