tag:blogger.com,1999:blog-2948538160252327076.post5072817619071986812..comments2023-11-02T15:48:50.381+00:00Comments on UK Bubble UK Economy: The big three and the big fiveAlice Cookhttp://www.blogger.com/profile/05753570123987780947noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-2948538160252327076.post-48594143900870273222008-08-16T13:19:00.000+01:002008-08-16T13:19:00.000+01:00I'd looked into the UK's balance of trade in some ...I'd looked into the UK's balance of trade in some detail and had some idea about the USA... I knew that BRICS was cash rich and that Germany was economically dominant in Europe... but what I'd really like to know is what the capital flows actually look like.<BR/><BR/>My hunch is that the UK borrows almost exclusively in Euros and dollars - which I infer from the fact that our foreign exchange reserves are pretty evenly split between Euros, Dollars and Gold by current exchange rates. If I'm right, either the UK is not dependent on borrowing from Japan, Russia, China or Saudi... or, at least, we're not exposed to their exchange rates.<BR/><BR/>What I'd love to see is an 8-node net-lending graph of the big 3+5... and, ideally a breakdown of the denomination of the debt. Does the USA borrow from China/Saudi and lend to the UK, for example?<BR/><BR/>I think this is important... especially in this era of historically low interest rates and volatile exchange rates.<BR/><BR/>Failing further insights from you, where did you get this information? If there is extra detail, I'd be very interested in it.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2948538160252327076.post-59120262139021897962008-08-15T19:12:00.000+01:002008-08-15T19:12:00.000+01:00sobers, well said.sobers, well said.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2948538160252327076.post-2381287145593589022008-08-15T18:53:00.000+01:002008-08-15T18:53:00.000+01:00I've said it before, and I'll say it again for the...I've said it before, and I'll say it again for the benefit of anyone who wasn't listening at the back. The UK nation has been spending beyond its means, both privately and publically, for many years now. This post graphically shows the cycle we have become locked into over the last 5-10 years. In some ways the magnitude of the problem is in our favour. It's the old saw: owe the bank £100 and it's your problem. Owe them £100m and it's theirs! The chinese how have so much $ denominated assets that they daren't pull out for fear of causing a massive collapse and losing the value of the assets they hold. So they hang on, probably trying to slowly reduce their holdings, without too much fanfare.<BR/><BR/>What will come of it? The first thing to realise is that at some stage governments in the indebted nations will hit a borrowing barrier. Eventually they will go to the well and if it ain't dry, it'll be damned expensive. That will be a shock. Cue huge tax rises and actual spending cuts. Imagine the squeals of pain. Spending never fell in nominal terms in the UK even under the "Thatcher Cuts". Most "cuts" these days are just reductions in projected future increases in spending! If the government had to fill the £50bn+ hole in it's accounts without borrowing think of the tax rises required! It doesn't bear thinking about. But face it we must, because that's where we are heading........Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2948538160252327076.post-8640948803195629302008-08-15T18:50:00.000+01:002008-08-15T18:50:00.000+01:00Бизнесмены русских купят весь Лондон. В каком коли...Бизнесмены русских купят весь Лондон. В каком количестве мы нуждаемся?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2948538160252327076.post-51812435721010200802008-08-15T18:47:00.000+01:002008-08-15T18:47:00.000+01:00The Russians have had a go at buying us up. Been d...The Russians have had a go at buying us up. Been down to West London recently.<BR/><BR/>Kak Vas Zavoot, tavarishAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-2948538160252327076.post-50639222609969487372008-08-15T18:41:00.000+01:002008-08-15T18:41:00.000+01:00Germany can just buy Spain, I suppose, but who wil...Germany can just buy Spain, I suppose, but who will buy us?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2948538160252327076.post-70597624519775546592008-08-15T18:38:00.000+01:002008-08-15T18:38:00.000+01:00This blog does my head in. There are days when I j...This blog does my head in. There are days when I just can't look out of fear of what I might learn about UK PLC.<BR/><BR/>I preferred being blissfully ignorant.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2948538160252327076.post-91016806860270542102008-08-15T18:37:00.000+01:002008-08-15T18:37:00.000+01:00This comment has been removed by a blog administrator.Anonymousnoreply@blogger.com