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Why don't the government just refuse to pay it back watch

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    (Original post by Jacktri)
    Well why waste time paying back debts and making cuts when you can just refuse to pay it back my solution is flawless and anyone who disagrees will be nuked because the UK owns nukes and we aren't afraid to use them.
    1. If we don't pay back our debts or attempt to tackle the deficit, our credit rating will be downgraded. This will make it harder for the UK to borrow money in the future and we'll have to borrow with higher interest. Then the national debt will just spiral out of control

    2. Other countries also have nukes so we'll just get nuked in return. Great solution there :facepalm2:
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    No one would trade with us, no one would loan us money, and no one would trust us. We'd be screwed.

    Seriously think the big picture.

    Also nukes, seriously? you are aware of a thing called retaliation right?
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    (Original post by MagicNMedicine)
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    Bunch of very good points, but I would slightly contest your last. In general, past debt has been more cyclical than structural. Until the mid '70s, we were steadily reducing debt from the World Wars. This leveled off under a Labour government, and then spending remained high at the start of the Thatcher years, in significant part due to the recession. It then fell until the early '90s recession, after which it rose (under Major).

    I'm not incredibly familiar with everything about those periods, but it would seem that in the past Labour government, apart from in the early years, debt has risen significantly, and it is structural debt. Furthermore, Labour has been more adept than many at hiding debt with PFIs and the like, and has made some rather misjudged individual economic decisions.
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    It's interesting to compare the deficit in the period running up to 2007 with the period running up to 1997.

    Also if you take that value of £30-33bn that was being run as a deficit in the period just before the financial crisis as the 'structural' deficit, then the current deficits for the last two years would have been in the region of £120bn. So when people try and say the collapse of the banking sector had nothing to do with it, its all a structural deficit, it's a load of bull.

    If they wipe out the current cyclical deficit and put us back where we were in 2006 we're about where we were under the John Major government.
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    Icelanders have voted to reject a deal to pay us back! How do we feel about this, bearing in mind the OP's stance?

    http://www.bbc.co.uk/news/world-europe-13022524

    Does it set a precedence for intransigence in all cases of government debts of other countries?
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    Because if we refuse then countries we have lent to can then refuse and the whole crooked affair of economics would be unleashed. Money is considered the most important thing on this planet. Its dominant grasp controls and directs our behaviour so we are nothing more than predicatble drones both as a counrty and as individuals. The whole balance of debt is complex and vulnerable and at the moment means we get to stay wealthy whilst others perish. And that nuclear option was just insane and said by a obvious moron.
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    (Original post by yawn)
    Icelanders have voted to reject a deal to pay us back! How do we feel about this, bearing in mind the OP's stance?

    http://www.bbc.co.uk/news/world-europe-13022524

    Does it set a precedence for intransigence in all cases of government debts of other countries?
    I'm afraid they are completely different situations, and you can't really compare the two. The OP is talking about defaulting on british government bonds, their main source of borrowing, which are also known as gilts.

    The article is referring to the money that UK and Dutch investors lost when Icesave collapsed. The equivalent here would be the UK government giving money to the affected Icelandic savers if Barclays or Lloyds collapsed.
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    Pension funds and banks use these bonds as security, and 80% of our debt is domestically owned. But you're right the government should deffo just rob hundreds of billions of pounds off people and banks, effectively destroying the entire country. keep taking your pills, OP.
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    (Original post by thegaffer91)
    I'm afraid they are completely different situations, and you can't really compare the two. The OP is talking about defaulting on british government bonds, their main source of borrowing, which are also known as gilts.

    The article is referring to the money that UK and Dutch investors lost when Icesave collapsed. The equivalent here would be the UK government giving money to the affected Icelandic savers if Barclays or Lloyds collapsed.
    I'm not comparing the situations on a like-for-like basis, but rather, referring to the ethos of refusing to pay out. Iceland has our money...they won't pay it back. Governmentally, we're in debt to others and the OP says we should refuse to pay it back.
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    (Original post by Jacktri)
    Well why waste time paying back debts and making cuts when you can just refuse to pay it back my solution is flawless and anyone who disagrees will be nuked because the UK owns nukes and we aren't afraid to use them.
    I'm pretty sure China holds some or alot of our debt.

    I wouldn't really want 1,300,000,000 angry Chinese drivers on the road.
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    Basically, just think of a 'credit rating'.

    You're not going to get a credit card from the bank if you have a history of defaulting on your debt repayments.
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    Because our credit rating will turn to junk and no one will ever lend us money again
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    I agree, I think we should nuke the French first... Oh wait :teehee:
 
 
 
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