Who does the government borrow money from?

[Evildweeb Profile]

Who does the government borrow money from?

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on Aug 27, 2012 by chunkymark


http://www.youtube.com/watch?v=J3mtn7JHrXE










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[Icarus1 Profile]

fair enough question , who are these faceless people ?

[Germanpils Profile]

the moneymakers, above the law, above anyone, who the hell could they be? must be a secret society

thats why we dont know them

[Phaeton Profile]

For EU: the financial markets, pensions etc.

We gave up our right to print our own money, so need to borrow it for a certain %'age from 'the market'.

Which is coupled to the level of credit- worthyness. which is partly decided by credit- rating agencies like standard and poor's.

And certainly, banks do play a significant part in all this.

The beauty is, banks can loan from the ECB for 1%, lend it out at, say, +5 or more %.
Any moron can get rich like that, I would think. Nations however, cannot loan from the ECB, and if this will happen - it wont be at 1%..

[Mushroom Profile]

Here's a good link which will answer some questions (If you're from the UK) http://www.debtbombshell.com/
I will add some selective quotes if you cannot be bothered to read the full info.

Every year the UK runs a large budget deficit. The Government spends more money than it can tax, so we plug the gap by selling bonds to investors at home and abroad. These bonds - known as gilts - have to be repaid in full, with interest. Added together, our unpaid loans make up the UK's national debt.

Right now, that debt is growing violently. The Government forecasts it will soar to an eye-watering £1.5 trillion by 2016. To put that in perspective, the UK went bust in 1976 running a budget deficit of 6% of GDP. In 2012 that deficit is going to top 8.9%.

The state has been wasting our money for decades. Weak politicians have bribed voters with endless amounts of borrowed cash. As a result, in 2012 the interest on the national debt will cost £44.8 billion a year. That's more than we spend on defence, and not much less than the entire education budget.

To pay this year's £43 billion interest bill, every household will stump up more than £1,800 in tax. That's not a joke - that really is how much it's going to cost you. The UK's national debt has become so astronomical that it's hard to make sense of it anymore.

The British Government borrows money by selling bonds, known as 'gilts'. These bonds are sold at regular auctions held by the UK Debt Management Office (DMO), on behalf of Her Majesty's Treasury. The term gilt is short for 'gilt-edged security' and is a reference to their perceived safety as an investment. The Government has never failed to make a repayment on a gilt.

When a gilt is sold, the Government guarantees to pay the holder a fixed interest payment every six months until the maturity date, at which point the full value of the bond is repaid. The proceeds from a gilt sale are then spent by the Government and the value of the gilt is added to our national debt.

On average, the bonds that make up our national debt need to be repaid within 15 years. With government spending so far out of control, interest on the national debt will cost over £42 billion this year. Currently we can only afford to make repayments by selling even more gilts. When run on this basis, government deficit financing is similar to an illegal Ponzi scheme.

As of April 2009, unrealised losses from financial sector interventions account for £134.5 billion of the national debt. Northern Rock and Bradford & Bingley account for £123 billion, with a further £9 billion going to compensate depositors with the Dunfermline Building Society.

If this wasn't bad enough, the picture is going to get considerably worse. The Office of National Statistics has classified the Royal Bank of Scotland and Lloyds as public corporations but hasn't yet included their liabilities in the national debt. When they finally crunch the numbers, expect the results to be ugly. According to EU figures, Britain has pledged £781.2 billion in capital injections, liability guarantees and liquidity support to the banking system. As taxpayers, we're on the hook for any losses.

The public finances are dominated by the welfare state, which will cost the UK some £202.6 billion to maintain this year. The welfare budget includes pensions and tax credits, plus unemployment, sickness, housing, council tax, child support and other benefits. In 2010-11, interest payments on the national debt will be the fourth biggest line in the budget, reaching £42.9 billion.

Tax credits and housing benefits are used to supplement working families who get £6.08 per hour minimum wage and cannot afford to pay their rent and feed their families from their measley wages. If fair wages were paid then this problem would have been prevented and working families would have more spending power, which would aid economic recovery.

On average, British government bonds pay interest for 15 years. The more we borrow, the bigger our interest payments get. Last year national debt interest cost the taxpayer £27.2 billion. In 2010-11 that figure soars to a jaw-dropping £42.9 billion. The more we spend on interest, the less we have to pay down debt or invest for the future. That interest is dead money, which means higher taxes for years to come.

We are living in an 'I'm alright Jack' society where the people in control aren't bothered about the consequences as long as they are OK.. It makes me sick.

On a side note: Our hard working leaders should be praised for the example they are setting for the rest of us

This year MPs took 10 days off in January and another 10 in February. They had 19 days’ break over Easter and another 17 for Whitsun and the Jubilee before signing off for 47 days for the summer recess.

They return on September 3 but spend just 10 days in Parliament before taking another 26 free days for the party ­conference season.

After returning on October 15 they sit for 18 days before a half-term week off and in December they break up five days before Christmas – and do not go back until January 7, 2013.

The UK’s 650 MPs earn a basic salary of £65,738 and work four-day weeks with nine Friday sessions finishing at 3pm.

On average Parliament sits for fewer than eight hours a day – with an hour off for lunch.

Before starting their summer break in July MPs voted to change the hours Parliament sat, starting three hours earlier on Tuesdays and an hour earlier on Thursdays – so that they could leave sooner.

So in conclusion, The government borrows money from banks and corporations and pays it back at massive interest rates whilst keeping the wages of the population artificially low (who work for the banks and corporations). They then top up the low wages by issuing tax credits and housing benefit which they have to borrow more money to cover, thus increasing the debt and interest payments.

Oh.. and the government get subsidised meals and alcoholic drinks as a reward for their hard work.. you gotta laugh.

[Phaeton Profile]

Good stuff.

Everyone should be aware of this.. It generally works thesame in every Western nation.

Lest maybe the USA, where they have 'their' 'Federal' 'Reserve', which playes a special role in the robbing of the nation. Gotta love the doublespeak..


Its there for you, the public.

Its Federal.

Its our Reserve.


O brother.

[Thewatcher Profile]

Who does the government borrow money from?

Upload to Disclose.tv

on Aug 27, 2012 by chunkymark


http://www.youtube.com/watch?v=J3mtn7JHrXE










.

I always thought it was the IMF ( international monetary fund ).

Have always wondered about this dweeb, like how deep are the IMF's pockets, who is there Main man, who's on there board making the decisions etc. etc.

Good post that can be delved into no doubt with many difference's of opinions.

[Mydogma Profile Website]

We owe all the monopoly money to our owners, the same owners that have limited our education system to a repeat after me system, the same ownwers that own all the war factories, and provoke us to fight based on lies...the same ownwers that have hidden away much of the achelogical past from us so we continue to follow failed sciences...the same owners that have raped resources and overthrown lands...that's who we owe the money too....a good book publised in 1934 called the robber barons...the truth has been out there...just not taught to us..

[Germanpils Profile]

i think money has become the human version of free energy.

[Noentry Profile]

The same people who stole it from us.

Greatest scam in the history of man.

How many trillions went missing from the US treasury?

errrr let me think 2+2 = 4. TPTB