[QuantitativeEazin]

A poll conducted by ComRes for the Centre for Policy Studies has found that widespread ignorance of our economic situation exists amongst the public.

The poll found that only 10% of the public knew that the British Coalition Government is planning to increase the national debt by around £600 billion by the end of this Parliament. Judging by the video that accompanies the report leading figures in the Coalition are the ones (at least partly) responsible for the UK's ignorance as they regularly confuse debt and deficit.

Check out d video to see if you fare better...
[youtube]UdejphZrRP8[/youtube]

QE - not the Queen, I make her wealth look paltry in comparison to my QuantitiveEasing

[Rancid]

It's much the same in the US. People do not understand what a trade deficit is and what the national debt is. They also have no concept of why it's bad to have a massive debt (especially when it's owed to people in other countries). I think this ignorance is why so many people have no problem with the government taking on more and more debt.

We are all so greedy and want everything for free basically.

There was a study in the US that found something like 40% of government welfare recipients (welfare money and medicare) claimed that they do not receive help from the government. I wonder what's it like in the UK.

All the more reason to support fascism.

[lucky]

They also have no concept of why it's bad to have a massive debt (especially when it's owed to people in other countries).

Why is it worse when it's owed to people in other countries?

As far as I can tell, nationality or residence of bond holders makes no difference. You still pay the same interest. Bonds can quickly be traded between people of different nationalities. What would matter is if the debt was denominated in another currency.

Of course it's good when locals have some savings and investments because they then get an income from them, but it doesn't really matter if they invest in government bonds, or they invest in something else while foreigners invest in government bonds.

[Rancid]

It's bad for two main reason that I can think of, I'm sure there's more:

1) When you owe the debt to your own citizens, it's easier for debt forgiveness to happen.
2) You are less likely to reform sectors of your economy where these foreigners own your debt. For example, in the US, back in 2008, one of the biggest reasons Freddie Mac and Fannie Mae were basically nationalized and not significantly reformed was because most of the debt instruments that China owns from the US are tied up in both of those institutions. So basically, we couldn't do the reforming that needed to be done to those institutions because we would piss off China. We're kind of forced to keep the mortgage segment of our economy in worse shape just to keep the Chinese bond holders happy.

[Corporatios]

The problem is that usually in the theoretical macro-environment deficit goes along with debt, so it is pointless to explain it to them.

[Baff]

It's much the same in the US. People do not understand what a trade deficit is and what the national debt is. They also have no concept of why it's bad to have a massive debt (especially when it's owed to people in other countries). I think this ignorance is why so many people have no problem with the government taking on more and more debt.

We are all so greedy and want everything for free basically.

There was a study in the US that found something like 40% of government welfare recipients (welfare money and medicare) claimed that they do not receive help from the government. I wonder what's it like in the UK.

All the more reason to support fascism.

I typically claim I get no help from the government myself.
But also my mate took 15 years to admit his parents helped him get his mortgage.
Pride is funny thing.

[Baff]

The problem is that usually in the theoretical macro-environment deficit goes along with debt, so it is pointless to explain it to them.

The point is that when the debt became too high a figure to mention and still be reasonably considered to be finacially competetant or capable of ever paying it off, they concentrated on a smaller number as a distraction.

The reason the people are confused by debt and defecit is deliberate. An act of misdirection

[Someneck]

A country which has its own currency cannot go broke; it just prints more money.

Of course that debases he currency and the EU/GB/USA are all doing it

I have a double short on US Treasuries. Today it went up 6%. When treasuries drop I make double the drop
Like taking sweeties from a baby

Listen folks - if you cant beat em - join em

It's all a game and fortunes are won and loss by predicting the timing of moves as much as the moves themselves

Don't worry about UK debt - with 20% inflation it will be worthless soon enough

My dad's house in Guiseley cost him 2.5k GB and it was a nice house owned by a bank manager !

I gave it away for 135k when he died in 95 - its probably worth double that now

That's what will happen to the national debt . My first weeks wage as a trainee accountant for Horsforth Council was 8 pounds GB or 12 dollars US - and I am still a young vigorous man with a tempestuous sex life !


Inflation - it's coming - not yet - but its coming

[Corporatios]

A country which has its own currency cannot go broke; it just prints more money.

Na' ah! It certainly can.

[Someneck]

Na' ah! It certainly can.

You are wrong. They just print more money. It's the people who lent them it who will be sorry to receive devalued repayments

economics class - year 1 - term 1 - week 1

[Rei Murasame]

The poll found that only 10% of the public knew that the Coalition Government is planning to increase the national debt by around £600 billion by the end of this Parliament.

That's a truly stunning number. That means 90% of the public is simply clueless.

Judging by the video that accompanies the report leading figures in the Coalition are the ones (at least partly) responsible for the UK's ignorance as they regularly confuse debt and deficit.

They do that in their public speeches, but they don't do it during the PMQs (since other party would call them out on it of course). What this may mean is that 90% of the public is not watching the PMQs at all.

They just print more money. It's the people who lent them it who will be sorry to receive devalued repayments

In theory, there can be a collapse if for some reason a whole bunch of people decide that they no longer want to hold that currency.

[Rancid]

Someneck = dirty capitalist

[Kman]

Thank god for all these public schools, without them the masses might end up learning about basic economic concepts and that would be really dangerous.

[Rei Murasame]

Here's PMQs from 14th September 2011, where David Cameron and Ed Milliband are screaming at each other, and in that screaming they do differentiate between 'deficit' and 'debt': [Link]

Watch from 6m 45s, to 10m 17s.

[Baff]

You are wrong. They just print more money. It's the people who lent them it who will be sorry to receive devalued repayments

economics class - year 1 - term 1 - week 1

So sorry that they will stop lending it or raise the intrests rates at which they will be willing to lend again in future.

So if you are spending more than you are earning and you piss off any potential creditors, you can still go broke.


Even if you cancel all your debts and refuse to pay them, even if you devalue your currency to nothing, you can still go broke

Famous examples, Germany and Zimbabawe.



Currency is not wealth. It's a measurement of wealth. Change the value of the numeration all you like, but you won't own any more or less afterwards.

[Quantum]

It's much the same in the US. People do not understand what a trade deficit is and what the national debt is.

You mean budget deficit, not trade deficit. Even the deficit is wiped out, the relative debt will still rise because debt servicing isn't being increased.

[Otebo]

That means 90% of the public is simply clueless.

Stop worrying the lot of you. HMG has found the solution to all our economic problems - making it easier to sack workers! Genius. So that's that solved then. The economy will be booming and the deficit cut in no time. You can all go back to your Bacardi Breezers and KFC and settle down to watch Big Brother. Our masters have it all under control.

[Baff]

As long as they now use this new law to sack themselves, the economy has great chance.

[Rei Murasame]

Oh my goodness. I thought you were joking until I clicked the link. Now I'm laughing and crying at the same time. It has reached the point of being absolutely surreal.

What the hell is going on? We're living in a madhouse!

[Otebo]

Well Parliament yesterday voted to allow the mentally ill to become MPs and company directors. I don't think a joke is even required on that one.