Wednesday, December 09, 2009

Conservatives launch Debt Clock


Brilliant. Fantastic. Big, bold and with all the subtlety of a a Gordon Brown smile. If this is the measure of the Conservative Party's advertising campaign over the next six months, it will be as effective as the 'Labour isn't Working' campaign of 1979.

It is a 'national debt clock' which is being projected onto Battersea Power Station. It shows the national debt in real time, rising by £5,500 per second.

The latest official figures show that the debt was £829.7 billion at the end of October.

The debt today stands at £847.9 billion.

And is rising by £5,550 every second.

That’s £23 per family per day.

Moody's have warned that the UK faces ‘an inexorable deterioration of debt affordability in the short term under almost all foreseeable scenarios'. This comes just weeks after Fitch warn that the U.K.’s sovereign credit rating is most at risk among top-rated nations. The rating faces risks because the UK needs 'the largest budget adjustment'. Earlier this year Standard & Poor’s lowered the outlook on the UK’s AAA rating to 'negative' from 'stable' on May 21, citing the country’s rising debt burden.

The national debt is predicted to double to £1.4 trillion in five years. Public Sector Net Debt is predicted to more than double from £609.1bn in 2008-09 to £1370bn in 2013-14.

£1 in every £4 spent by the government this year is borrowed. The Budget shows net borrowing in 2009-10 at £175bn, this is 26% of the Total Managed Expenditure of £671.4bn.

This year alone, Labour will add £2,850 to the debt of every child. Government borrowing this year is £175 billion, or £2,850 in extra debt per person. If the official economic forecasts are wrong, it could be even higher.

The average family will have to spend over £2,500 a year in taxes just on paying the interest on Labour’s debt. This is more than what families currently spend on average on petrol costs, gas bills and electricity bills combined. It is more than half the cost of the average family’s current annual mortgage interest payment. Households spend on average £754 a year on petrol, and £827 on gas and electricity bills. The average family with a mortgage currently spends £4,285 on its mortgage interest payments.

What you could buy with the interest on Labour’s debt:

If Britain was not going to spend £63.7 billion a year on debt interest, we could:

Abolish fuel duty, inheritance tax, and stamp duty or
Abolish council tax or
Pay for 1.5 million extra police officers or
Pay for 1.6 million extra teachers or
Pay for 1.9 million extra nurses or
Cut the basic rate of income tax by over 13p.

Britain will spend more next year on paying the interest on Labour’s debt than on educating our schoolchildren. The Dedicated Schools Grant in 2010-11 will be £31.9 billion. Debt interest payments will be £42.9 billion in 2010-11, and are estimated to rise to £63.7 billion by 2013-4.

Britain will spend over three times as much next year paying the interest on Labour’s debt than on our transport system. The transport budget in 2010-11 will be £13.8 billion.

Britain will spend more than twice as much next year paying the interest on Labour’s debt than on police and prisons combined. The combined budget of the Home Office and the Department of Justice in 2010-11 will be £20.4 billion.

Britain will spend six times as much next year paying the interest on Labour’s debt than on building homes. The total budget for ‘Building and improving the supply of housing’ in 2010-11 is £6.4 billion.

Britain will spend more than twice as much next year paying the interest on Labour’s debt than on tax credits. The total budget for tax credits in 2010-11 will be £21.8 billion.

Britain will spend more than four times as much next year paying the interest on Labour’s debt than on the Olympics. The total budget for the Olympics is £9.35 billion.

Leading economists agree that the UK needs to do more to tackle the deficit. Mervyn King said: "The longer there is not a credible plan that sets out what actions will be taken the more that [rating downgrade] is a risk" (evidence to the Treasury Select Committee, 24 November 2009). The OECD say: "The weak fiscal position makes further consolidation necessary; an announcement of concrete and comprehensive consolidation plans upfront would enhance macroeconomic stability" (Economic Outlook 86, November 2009). Michael Saunders at Citi says: "Since the Budget, other groups (IMF, OECD, European Commission, CBI, major ratings agencies) have warned that more needs to be done to return to fiscal sustainability" (Citigroup note, 4 December 2009). The CBI say: "History tells us that these are really difficult nettles to grasp but if you grasp them in a clear and bold way, then the pain lasts for a shorter period than if you just limply grab hold of them… Our strong instincts are that the risks of going too soon are less than the risks of waiting too long" (Richard Lambert, CBI Director General, quoted in FT, 19 November 2009).

And the saviour of the world, Barack Obama, says: "I think it is important though to recognise that if we keep on adding to the debt, even in the midst of this recovery, that at some point, people could lose confidence in the US economy in a way that could actually lead to a double-dip recession" (in The Times, November 18 2009).

Labour has cursed the nation with a debt to Mammon which will have to be satisfied.

And it will hurt.

16 Comments:

Blogger The Anti Christ said...

Every action has an opposite and equal reaction. I can already feel the pain surging - it's better than sex. I missed my calling, I should have been burning witches in the 16th century.

9 December 2009 at 10:04  
Anonymous Anonymous said...

Do us all a favor and start burning Quangos in the 21st century

9 December 2009 at 10:14  
Blogger D. Singh said...

Your Grace,

Richard Celente the man who predicted the 1987 stock market crash and the fall of the Soviet Union is now forecasting revolution in America, food riots and tax rebellions – all within four years, while cautioning that putting food on the table will be a more pressing concern than buying Christmas gifts by 2012.

We are entering an unprecedented period of poverty on both sides of the Atlantic.

I know I have said this before: people need to start stockpiling food. Tins of food can last for years and honey can last for centuries!


Fellow posters, please contribute to His Grace's fund; as we approach the 'End Times' this website is going to be critical. We must keep it going.

9 December 2009 at 10:44  
Anonymous Anabaptist said...

It is a nice -- though somewhat delayed -- riposte to Ken Livingstone's placing, when he was leader of the GLC, a large poster on County Hall (opposite the Palace of Westminster) displaying the supposed number of the unemployed). The Tory effort is more technological.

However, it remains to be seen what serious policies the boys Cameron and Osborne intend to make a significant reduction of the debt. Read Philip Johnston in today's Telegraph (http://tinyurl.com/yz3rxhw), and you'll see the problem set out clearly.

Which monster spending commitments are the Tories planning to slash? Without such a commitment, the Tory gimmick, though impressive, is little more than rhetoric.

9 December 2009 at 11:29  
Anonymous Anonymous said...

Maybe God is seeking the few good moral men that will convince Him to stay His hand - Here's to hoping He does not find them and (my larder is now looking like Wall Mart).

9 December 2009 at 11:51  
Blogger I am Stan said...

Yo your gracieness,the figures are very worrying....how the blazes can this dept be repaid...its not like there is some huge manufacturing base or deep mineral resourse to flog..hell via hand cart methinks..

9 December 2009 at 13:10  
Blogger Gnostic said...

Our national debt is a runaway train yet Brown is still borrowing and spending like there's no tomorrow. I suppose there is no tomorrow for Labour so they don't care. So we not only get a scorched earth policy, this load of complete and utter ladies privates are making sure the ground is also unfit for the purpose of kick-starting the economy.

9 December 2009 at 13:36  
Blogger Frugal Dougal said...

And Labour's spin doctors have probably advised ministers to spend as profigately as possible, given that the Conservatives will probably be taking the helm rather soon. It would serve them right if they were re-elected - we could do with a good revolution.

9 December 2009 at 13:41  
Blogger The Anti Christ said...

Christmas radio for communicants

The PBR was nothingless than a washout!

9 December 2009 at 14:38  
Blogger D. Singh said...

Your Grace,

And another thing. You can add £106,000 per minute of our contribution to the EU.

After 12 years of socailism the country is on the brink of bankruptcy; it is under the tyranny of the EU; it is morally deficient; we are in an unwinnable war; a deeper recesion looms; the unemployment queues lengthen - is there anything else rthat the deadening hand of socialism can crush?

Who will deliver us from the socialist?

9 December 2009 at 14:42  
Blogger Lord Lavendon said...

Watched the whole thing on TV (after the broadband conked out).

Currently wading through 216 pages of the pre-budget report. This is a laborious task, but it is often in the small print that one finds the worst of the socialist policy or hidden taxes.

Initial thought is that they didn't say how they were going to have the deficit (efficiencies and public sector pay, he said could yield £20 billion, national insurance at about £3billion, but this still leaves, £66 billion to find).

In the next 5 years, even with the plans to half the deficit, will we will be borrowing (chancellor's figures so treat with caution) over £800 billion. So we will have to pay this back as well. Also don't believe that rot about the bank bailouts 'only' costing £10 billion and not £50 billion. Where is the basis for that assertion?

In summary, they are really leaving this to the next government to solve. I bet labour are hoping it won’t be them.

9 December 2009 at 14:51  
Anonymous philip walling said...

The scum in government are simply delinquents, devoid of any sense of responsibility, and who will always look to someone else to sort out their mess and above all to discipline them. (They secretly welcome the intervention of the IMF and subjugation to Brussels, just as the juvenile delinquent values and depends on the policeman).

All socialists (except the cynical among them like Crosland, Wilson and Blair) come from that class in society which needs someone to give them a job - what could be called the servile class - and are natural employees.

They don't value or seek freedom, preferring slavery (in one form or another) and that is where they belong.

But I do so resent their taking me down with them.

9 December 2009 at 15:33  
Blogger D. Singh said...

Your Grace,

On the Bruges group website they are reporting a EU Court of Justice case. The outcome of it is a £9.7 billion loss to this country's exchequer.

We were warned that the EU would interfere with our tax laws.

You just couln't make this up.

9 December 2009 at 15:39  
Anonymous Voyager said...

D Singh should read Dmitry Orlov's book Reinventing Collapse

The basic fact is that this system must collapse. There is no N Sea Oil this time and because of Bill Clinton, China has been given the keys to the door in EU and USA.

The only way to stop China flooding the world with cheap goods and driving all export businesses to the wall is import controls and tariffs.

In fact, the whole economic model of the Allies Post-1945 is broken. it relied upon one global economy carrying the weight - first the British Empire, then the USA.

This allowed Germany and Japan to rack up huge trade surpluses as UK and USA inflated their way to fund imports. This option is over having been turbo-charged since 1986.

Collapse is the likely outcome and a new political system - probably a form of Fascism more blatant than the current type which has ripped off the mask of rampant manipulation behind the scenes

9 December 2009 at 15:44  
Anonymous martin sewell said...

I hugely enjoyed the following bumper sticker from the USA which is almost applicable to Brown.

"PLEASE don't tell Obama what comes after a trillion!"

9 December 2009 at 16:01  
Anonymous non mouse said...

I respond negatively to using illumination for political advertising - but then again, it might be better than bullets. If it works and bypasses the other media ....

Well the. Maybe it should take off in other directions: like against the euSSR. For starters - let's campaign to stop paying them that 55bn a year. By Lord Lavendon's calculation, that leaves us a more manageable 10bn to find. If we found a way to stop funding illegals, that could help...

Next - never mind what marxists say about protectionism. Let's start posting: SOS = Save Our Selves. Time we did - so how about a campaign encouraging individuals to stop buying Cheap Chinese Trash? We'll have to stop anyway when we have no money.

Let's 'Buy British' instead - and start producing things to sell. {People who do nothing but consume just get fat, flabby, sick, and useless}

9 December 2009 at 20:54  

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