Tank Slap - Motorcycle Forum

I see our government is still borrowing at an alarming rate.

http://www.bbc.co.uk/news/business-29702795" onclick="window.open(this.href);return false;

I suspect the government are gambling on our economic improvement. We need to be hitting a decent level of growth to stop the borrowing and to repay the debts. If it slows or stops then we're buggered. Even if the economy does grow as predicted we can't spend the extra income because it's already spent. It also means if Labour get in then they've got no money to spend. So it really doesn't matter who you vote for in the next general election, because we've got historical debts to service before we can make use of our growth. We might be coming out of this recession quicker than other European countries but they're going to be healthier than us in the long term.

Tbh I can see another round of economic correction across the world. The debt across most 1st world countries is big and isn't being paid down at the rates required. Banks are in a slightly better place because of regulation and the previous problems, but many governments haven't done enough.

Citizens of Europe, America etc will have to accept a lower 'standard' of living else nothing will ever change.

I'm waiting for another country to start defaulting to trigger more problems.

Tbh I'm usually an optimist but most of the real evidence points to pessimism sadly

The government debts are not being paid down at all, Cookie. They are just growing ever larger.

The interest repayments alone have doubled since the recession started from approx £33 billion per annum to over £60 billion per annum.

I have no idea how this country survives to be honest but whatever, those who are lending the government these huge sums are the ones calling most of the shots on economic policy.

I guess it should mean much higher tax rates, but then you destroy economic growth. There must be a mathematical limit to tax collection and debt limits. No limits equals disaster.

Therefore it's time to stockpile food and buy a gun methinks...

C00kiemonster wrote:I guess it should mean much higher tax rates, but then you destroy economic growth. There must be a mathematical limit to tax collection and debt limits. No limits equals disaster.

Therefore it's time to stockpile food and buy a gun methinks...

I think you're right...look at Cali...it has one of the biggest economies in the world and some of the lowest taxes....taxes in the UK are laughable in certain areas like petrol & VAT......so it seems to work, despite not being perfect.

And I'm no economist so I won't speculate but there has to be some correlation between the strengths of the dollar, euro, and pound in relation to how the various economies prosper.

I seem to recall several pundits quoting twenty years to climb back out of the hole the recession caused financially, sadly I thought that may have been slightly pessimistic at the time, probably not far from the truth though. However in another 14-15yrs some bright spark is going to be banging the drum to give banks a whole lot more freedom and allowing investment and savings banks to amalgamate. I'd put money on it if I hadn't spent it on a gun to blow my brains out.....

D41 wrote:

C00kiemonster wrote:I guess it should mean much higher tax rates, but then you destroy economic growth. There must be a mathematical limit to tax collection and debt limits. No limits equals disaster.

Therefore it's time to stockpile food and buy a gun methinks...

I think you're right...look at Cali...it has one of the biggest economies in the world and some of the lowest taxes....taxes in the UK are laughable in certain areas like petrol & VAT......so it seems to work, despite not being perfect.

And I'm no economist so I won't speculate but there has to be some correlation between the strengths of the dollar, euro, and pound in relation to how the various economies prosper.

California's debt is out of control too.

http://cacs.org/research/unsustainable- ... l-of-debt/" onclick="window.open(this.href);return false;

There should be laws put in place throughout the world that do not allow Governments to run up unsustainable debt. Those who are most culpable for it are never the ones who have to sort it out.

And there should be worldwide laws in place that mean income earned by big multinationals is taxed in the country in which it is earned.

The taxation within trading nation point is a good one, I would take a guess that there are some fairly sharp financial minds at the Treasury trying to devise some cast iron legislation to ensure that happens, at the moment the money is passed around a bunch of internal divisions and shell companies in different countries and the profit syphoned away bit by bit with internal fees and salaries so it looks like they aren't making a lot of money. The UK is too rich a market for the likes of Amazon and Costa to pull out despite any threats to the contrary.

Its ludicrous that rules allow big multinationals to move profits out of the country they are made in.

If the order is taken in the UK and the products are delivered from within the UK then the tax on the profit should be paid here.

I have to disagree about moving profits...it's their money, and that's why big companies go international....taxes I agree with...but that's the way govts operate...they give a tax break to the company to entice it, and then reap the tax rewards from the employees....which they would have gotten anyway, but it's better than having those employees on the dole.

I mean, where would you be if every big multinational took their business elsewhere...better off or worse off??

They can't take it elsewhere.

All the money they make is in the UK or Europe or the USA.

Why don't they let us all move our earnings and avoid/evade tax then?

They have taken their business elsewhere - anywhere else there are punters with money. The need is in the country in question - the UK in this instance, if Starbucks don't sell someone coffee, that person will go to Costa, or one of the other multitude of shops, the same will happen with Amazon or Petrochemical companies, the demand just gets serviced by another company. Let them shut their shops or warehouses if that's what they say they're going to do, it's a game of Brinksmanship, they'll take profit less tax rather than no profit at all.

I'm no economist but a question for the more knowledgable people on here than me.

Are our savings at risk of being taxed like the Greek govement suggested and nearly tried a year or two ago ?

I have always felt secure that through the FSA my families life savings would be secure and protected but these days I'm not sure and it worry's me a little.

Is cash safe in the bank or have those days past and were better investing elsewhere like bricks and mortar or similar ?

Premium bonds are about the safest but you don't get the returns. Normal savings accounts are crap, no interest at all. ISA is about the safest with a return.

Cheers for the reply which is appreciated. We have premium bonds and use our isa allowance but concerns are they levy a one off tax on savings as they very nearly did in Greece. This would then expose isa and building society accounts to tax and possibly premium bonds I don't know and that's my question.

I suppose anything is possible, but just a whiff of that possibility would send the pound into free fall, very difficult to forgive a Government something like that and people with money have long memories, it would make a government unelectable for years.

I would pop into my bank and make a withdrawal using a shotgun. They couldn't call it armed robbery as how am I robbing something that is mine in the first place, i have paid tax on and which they stole from me.

I can't see them doing it, Blade because it would mean the end of anyone putting savings in the bank ever again but politicians do desperate things when they are in a desperate situation so nothing can be discounted. I would spread the risk anyway as it the safer thing to do these days.

Our government would run out of cash in two weeks if we all withheld our taxes.

As duke has said blade, spread the risk. Isa's are useful but only the stocks and shares ones in my opinion. Cash isas don't seem to pay much interest so your not really saving much tax. Premium bonds are fun and safe (I suppose). You may well win the million

My attitude is that if some of my money is in property and investments then the gov can't get at that very easily. They may go up and down in value, but it spreads the risks. Cash they can get at, but I find it very unlikely as the whole system of saving, spending and money would collapse. As duke has rightfully said.

Who knows ultimately. Best spend it on toys quick . Or if you don't want to, I have an excellent investment scheme involving cash and me disappearing with it.

my brother in law is a broker in london so plays with money ,I had some spare cash from selling my old porsche ,I asked him how to invest and he told me you are better off paying it off your mortgage than putting it in bonds or isas
so thats what i did ,o and also buy a ktm rc8