New Home Owners And Snagging Forum
Investments => Financial Markets and the economy => Topic started by: The Prophet on July 26, 2014, 09:51:05 am
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The cutting of the deficit, the amount the government spends over and above what it takes in tax revenues, is still increasing. So much for "austerity", cutting back and "we are all in it together." Clearly cutting the deficit is on the back burner as the 2015 election approaches.
The government has "found" Money for Help to Buy, money for regions, money for this, money for that - anyone would think we were awash in the stuff and had a budget surplus!
Not true! So don't believe a word that the Coalition say about reducing the deficit, they have in fact increased it for purely political reasons.
This government borrowed £11.4bn in June 2014, only marginally less than in June 2013.
In April and May 2014 large deficits were again recorded, so much so that in the first three months of the 2014/15 tax year, borrowing was 7% HIGHER than the corresponding period last year.
The current total debt pile is now a record £1.3 trillion that's £1,300,000,000,000,000,000,000 in real figures.
That represents 77.3% of GDP. Current thought is that whoever wins the election, it is unlikely that the deficit will be in balance until 2019 at the earliest, this despite the treasury "raising" £100bn in VAT in 2013/14 tax year - a new record and now accounts for £1 in every £5 taken in tax.
Whoever wins the election next May you can be certain of one thing, they will keep borrowing more and more and the only hope inflation reduces the debt burden before the market wakes up and interest rates on Britain's debt pile rise to an unsustainable level.
Buy your Gold now - you have been warned!