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    (Original post by James Milibanter)
    Current interest rates for UK Government Borrowing are 1.396%

    We can repay it at £2.002792bn per year (rounded down to £2bn) for 50 years.
    With 1.396% interest rates repaying 2bn a year will take 85 years, paying at the rate given will only knock 1 year off.
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    (Original post by Jammy Duel)
    With 1.396% interest rates repaying 2bn a year will take 85 years, paying at the rate given will only knock 1 year off.
    When we see the economy boosted thanks to my measures, we'll see surpluses being used to tackle the debt. At the moment though, £2bn per year to receive 500,000 homes as well as stability for the british people is a good bet.
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    (Original post by James Milibanter)
    When we see the economy boosted thanks to my measures, we'll see surpluses being used to tackle the debt. At the moment though, £2bn per year to receive 500,000 homes as well as stability for the british people is a good bet.
    I didn't know that penalising business is seen as leading to stronger economic growth...
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    (Original post by James Milibanter)
    Current interest rates for UK Government Borrowing are 1.396%

    We can repay it at £2.002792bn per year (rounded down to £2bn) for 50 years.
    No, you cannot: if the debt was taken out as long-term for 50 years, the interest rate servicing it would be £1.36bn per year; it could take 156 years to pay it all back at £2bn.

    Jammy Duel I do not count someone who self-studies with no formal certification as an accountant, his financing plan is mad. He is not explaining how he arrives at his figures for paying £2.002792bn a year for 50 years, I cannot find any financing plan, nor budgetary equation which returns that answer.
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    (Original post by AlwaysWatching)
    Does the government agree that with the current tension around the globe and the unpredictable activities around the world of certain state and non state actors, it is wise to back the renewal of Trident?
    Having not read the interim pages of debate yet, I believe that some form of nuclear deterrent ought to be continued. What form that deterrent ought to take needs further consideration however.
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    (Original post by Jammy Duel)
    I didn't know that penalising business is seen as leading to stronger economic growth...
    We're not penalising business, for a start our decrease in VAT will lead to a boost to businesses, keeping CGT and Corporation Tax won't be hindering business growth, decreases to Income Tax will lead to people with more spending power, the wealth tax, inheritance tax, and GRT will all lead to increased economic activity.
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    (Original post by James Milibanter)
    We're not penalising business, for a start our decrease in VAT will lead to a boost to businesses, keeping CGT and Corporation Tax won't be hindering business growth, decreases to Income Tax will lead to people with more spending power, the wealth tax, inheritance tax, and GRT will all lead to increased economic activity.
    You're effectively doubling business rates and trebling council tax, albeit only on a small section of the population, well, a tenth.

    I've also run the figures and for you to take 50 years (exactly) to pay off the £100bn with a 1.396% interest rate ignoring inflation in all regards the annual payments would have to be £2,791,841,980.80
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    (Original post by Nigel Farage MEP)
    Jammy Duel I think know how he has arrived at his figure, he has multiplied the £100bn debt by the interest rate of 1.396% to find a repayable amount of £1.0396bn, then divided that by a little over £2bn to find a repayment time of 50 years, but government finance does not work like that.
    Again, I know exactly how he got to it, I just wanted to tell him how wildly out he was by forgetting that the interest is on the outstanding amount and then considering compound interest.
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    (Original post by Jammy Duel)
    Again, I know exactly how he got to it, I just wanted to tell him how wildly out he was by forgetting that the interest is on the outstanding amount and then considering compound interest.
    I have been misinterpreting your posts, I thought you were as baffled as I was over his figure.
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    (Original post by Jammy Duel)
    You're effectively doubling business rates and trebling council tax, albeit only on a small section of the population, well, a tenth.

    I've also run the figures and for you to take 50 years (exactly) to pay off the £100bn with a 1.396% interest rate ignoring inflation in all regards the annual payments would have to be £2,791,841,980.80
    I think that may be right, I'll double check though (but so far my figures regarding this scheme have been bouncing up and down all over the gaff so I'm not too sure what good double checking'll do), in any case, something I've overlooked is the amount we'll save out of housing benefit thanks to the scheme, the difference in the average benefit payout to a private tenant and a social tenant inEngland is currently £936 per year so there's every chance that we can save up to £450m a year or at least £300m if you want to be conservative.

    (Original post by Nigel Farage MEP)
    Jammy Duel I think know how he has arrived at his figure, he has multiplied the £100bn debt by the interest rate of 1.396% to find a repayable amount of £1.0396bn, then divided that by a little over £2bn to find a repayment time of 50 years, but government finance does not work like that.
    I have been going over the maths, and yes, I think they're slightly wrong.
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    (Original post by Jammy Duel)
    Again, I know exactly how he got to it, I just wanted to tell him how wildly out he was by forgetting that the interest is on the outstanding amount and then considering compound interest.
    (Original post by Nigel Farage MEP)
    I have been misinterpreting your posts, I thought you were as baffled as I was over his figure.
    Jammy's right. Like a **** I put the interest on the repayments rather than the total debt.
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    (Original post by James Milibanter)
    I think that may be right, I'll double check though (but so far my figures regarding this scheme have been bouncing up and down all over the gaff so I'm not too sure what good double checking'll do), in any case, something I've overlooked is the amount we'll save out of housing benefit thanks to the scheme, the difference in the average benefit payout to a private tenant and a social tenant inEngland is currently £936 per year so there's every chance that we can save up to £450m a year or at least £300m if you want to be conservative.



    I have been going over the maths, and yes, I think they're slightly wrong.
    Hallelujah, you have accepted you've done something wrong, even if it is one of the less important figures given that it refers to deficit projections and only has a very small effect, whilst you still, I assume,. stubbornly hold on to your main error in the accounting for the spending.
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    (Original post by Jammy Duel)
    Hallelujah, you have accepted you've done something wrong, even if it is one of the less important figures given that it refers to deficit projections and only has a very small effect, whilst you still, I assume,. stubbornly hold on to your main error in the accounting for the spending.
    I don't think it makes much of a difference now, I'll mention it in the End of Term Review.

    Besides, if I put it in as £20bn a year, it would read like this:

    £20bn year 1, remaining debt £81.1168bn
    £20bn year 2, remaining debt £61.969990528
    £20bn year 3, remaining debt £42.55589159577088
    £20bn year 4, remaining debt £23bn
    £23bn year 5 debt covered.
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    (Original post by James Milibanter)
    Jammy's right. Like a **** I put the interest on the repayments rather than the total debt.
    The compound interest does not matter in government financing, plan on paying the servicing interest for an infinite amount of time; it will cost £500m per year forever until the outstanding amount becomes small enough due to inflation to be repaid.
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    (Original post by Nigel Farage MEP)
    The compound interest does not matter in government financing, plan on paying the servicing interest for an infinite amount of time; it will cost £500m per year forever until the outstanding amount becomes small enough due to inflation to be repaid.
    But we're currently paying £40bn a year in interest repayments, £40bn that could be spent in the economy
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    (Original post by James Milibanter)
    I don't think it makes much of a difference now, I'll mention it in the End of Term Review.

    Besides, if I put it in as £20bn a year, it would read like this:

    £20bn year 1, remaining debt £81.1168bn
    £20bn year 2, remaining debt £61.969990528
    £20bn year 3, remaining debt £42.55589159577088
    £20bn year 4, remaining debt £23bn
    £23bn year 5 debt covered.
    If you're going to be doing it like that there is no point in taking out the loan at all given that you are borrowing before you need it, later I'll run through how it should look in terms of totals
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    (Original post by James Milibanter)
    But we're currently paying £40bn a year in interest repayments, £40bn that could be spent in the economy
    But who is that £40bn being paid to?
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    (Original post by Jammy Duel)
    But who is that £40bn being paid to?
    **** knows. It's interest repayments on Government Debt.
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    (Original post by James Milibanter)
    **** knows. It's interest repayments on Government Debt.
    And what form does the majority of that debt take? I.e. what does the government do when it wants to borrow money?
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    (Original post by James Milibanter)
    But we're currently paying £40bn a year in interest repayments, £40bn that could be spent in the economy
    If all government debt was financed by the method you are suggesting of paying back £2.7bn a year the interest repayments would be higher. There is a good online blog written by an economist over long-term government debt as a way to finance investments in infrastructure; use his plans as the plan for financing the new council houses.
 
 
 
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