Post covid apocalypse

Bobajob

Pedelecer
Nov 1, 2019
231
112
Cornwall
The cost of this covid 19 is I believe going to hit us all very soon when we return to normal (though I feel we have lost that now) and the payback will have to start.
Where will our government get the finances to refund our way out of this calamity?
 

Woosh

Trade Member
May 19, 2012
14,235
11,344
Southend on Sea
wooshbikes.co.uk
PSBR for this financial year is estimated at £332 billions. That's roughly £5,000 per person in the UK. Next year's PSBR may be less thanks to import duty (which goes to the EU at the moment) but will still be very substantial.
Perhaps a wealth tax on the UK's non-domicile residents.
 
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Bobajob

Pedelecer
Nov 1, 2019
231
112
Cornwall
PSBR for this financial year is estimated at £332 billions. That's roughly £5,000 per person in the UK. Next year's PSBR may be less thanks to import duty (which goes to the EU at the moment) but will still be very substantial.
Perhaps a wealth tax on the UK's non-domicile residents.
yes thanks for that but where do the government get the funds?
 

Benjahmin

Esteemed Pedelecer
Nov 10, 2014
1,711
1,093
66
West Wales
They print it ! They get banks and pension funds to buy bonds which say, ' Lend us your money and we'll pay it back in X years'. When X years arrive they don't have the money to pay back ('cos they're in debt) so they borrow more, or print it. If the gov needs to borrow £1billion but can only sell £500million in bonds, the gov buys the rest of the bonds. So the gov buys it's own debt with money that it created out of thin air and pays itself the interest. I know - welcome to the cooky land of high finance. Here's the real kicker. The money to pay interest doesn't exist, so they have to create it:eek:.
Honestly if you or I tried this kind of thing we would be arrested and chatged with running a Ponzi sheme (look it up)and thrown in jail.
As the created money comes out of thin air - not based on labour, goods, property, precious metals, or wealth creation of any kind - then it is WORTH nothing. In fact, as most money created today is digital, that makes it not even worth the paper it's not printed on.
Do not believe treasury/bank of England figures of 2% inflation, these are highly massaged and 'conveiniantly presented.
 
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KirstinS

Esteemed Pedelecer
Apr 5, 2011
3,208
883
Brighton
[QUOTE="Bobajob, post: 571640, member: 27829"
Where will our government get the finances to refund our way out of this calamity?
[/QUOTE]

Our children, our children's children and probably beyond
 

vfr400

Esteemed Pedelecer
Jun 12, 2011
4,713
1,655
Basildon
Just like the average person most government borrowing is based on future income. The more income you have the quicker you can pay back the debt. Future governments will have to raise taxes to do this. Something to look forward to.
I've reported you for posting in the wrong forum.
 
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