Gransnet forums


Billions of pounds

(133 Posts)
tanith Wed 08-Apr-20 18:52:28

I know our Government borrow money but listening to Rishi Sunak today it’s clear they are going to be supporting the country with Billions of pounds for a long time.

I feel very naive/stupid wondering where it’s all going to come from?
Can anyone enlighten me as to where all this money will be found/borrowed from?

Jillybird Thu 09-Apr-20 10:07:37

Lots of intelligent knowledgeable answers already but just adding my two pennarth; I asked my son who is in banking, the same question, he said, "Don't worry about that, the interest rate is very, very low at the moment, so they're laughing"... I still haven't quite figured out exactly what he meant... but clearly we should not be concerned!

Nannan2 Thu 09-Apr-20 10:08:27

See,i was right about the printing😂

gillybob Thu 09-Apr-20 10:10:13

One thing for sure the banks won’t suffer and no doubt will be giving away nice fat bonus’s as usual .

123kitty Thu 09-Apr-20 10:10:29

Any company executive or member of staff paid over a certain figure should have a percentage of their salary/dividends cut before their Company is considered eligible for Gov handouts. I also think highly paid Gov figures, members of Quangos etc should forfeit the same percentage.

Jane10 Thu 09-Apr-20 10:11:05

Will that not lead to the devaluation of the pound with all the risks involved in that?

Volunteer77 Thu 09-Apr-20 10:12:44

Shame Gordon Brown sold off our gold so cheaply!

polnan Thu 09-Apr-20 10:13:20

well China will not pay up! there`s whistling in the wind

if we stopped by stuff from China,, that could help

now. the Daily Mail says MP`s being given an extra,, EXTRA £10,000 to help them with the extra costs of working from home...

I leave you all to add your comments to this... no rudeness now.. we vote for them!!

Nannan2 Thu 09-Apr-20 10:15:21

So is leaving EU delayed for now then,till the CV crisis is over? Or did they do it anyway& i didnt notice cause of this crisis?hmm

RobtheFox Thu 09-Apr-20 10:17:45

Several contributers have suggested that the solution is to print more money literally or by computer adjustments. This will only hasten a rapid devaluation of the pound as happened to the currency in Zimbabwe albeit for different reasons. Yes, there will be a debt to be repaid but perhaps it is wise to remember that the UK is the 5th or 6th strongest economy and that the debt incurred by the country through the Second World War was not cleared until 2006 but the country never went bankrupt. Competent stewardship of the economy will prevail under Sunak

TATT Thu 09-Apr-20 10:18:06

Whatever the outcome we can be certain, as always, that the poor and vulnerable will suffer most.

Deed5y Thu 09-Apr-20 10:18:43

I don’t understand! If that’s the case, why have we been through a horrible recession because we needed to find the money that apparently the Labour Party used up?

Nannan2 Thu 09-Apr-20 10:19:00

Well i think we should all bl**dy well object to the MP's getting extra.they arent handing EVERYONE an extra 10k to work from home are they??? We should start a petition against that! angry The only 1 who deserves it is poor Boris!

Torbroud Thu 09-Apr-20 10:19:55

Nanan2 my feelings exactly

Rosina Thu 09-Apr-20 10:22:24

I've been thinking abou this a lot, Tanith , and as we well know there is no such thing as a free lunch. I fear our children and grandchildren will have to work to a much greater age than we are. What else can be done? If the government don't support businesses large and small there will be an economic crisis like nothing we have ever experienced. I don't suppose life will be easy when it returns to whatever normal might be, but I do believe that what has been done is the best of a very bad situation. Fire fighting is not the best economic course to follow, but this is what governments all over the world have been faced with; decisions needing to be taken in hours that in reality should be considered over a much longer period - but it hasn't been possible. Some of those decisions will undoubteldy turn out to have been wrong but I hope that it can be accepted that everyone did their best with the information and resources available

monkeebeat Thu 09-Apr-20 10:23:11

Money is just printed paper. It is what it stands for thats valuable.
Just keep printing......

Nannan2 Thu 09-Apr-20 10:25:53

There should be a ban on buying from china anyway- weve no real idea how its transporting or how long the virus really lasts on safer and also it'd make china more careful in future! & get rid of the blooping markets.( there and here) everyone being able to touch all the goods..its a surefire way to spread every disease known to man..or unknown,as CV was...hmm😡

Nannan2 Thu 09-Apr-20 10:26:25

Gosh i feel better now ive ranted!😁

MaizieD Thu 09-Apr-20 10:26:58

The value of our money has absolutely no connection at all with our gold reserves, Volunteer77. Gold reserves were important in the days when our currency was on the gold standard, i.e. backed by our reserves of gold (and silver). This restricted the amount of 'money' that could be issued without devaluing it. Extra 'gold' to expand our money supply had to be earned from exports. 'Borrowing' was either from other countries' gold reserves or the issue of government bonds. But the gold standard was abandoned in 1972. This completely altered the way that our national economy can be run. No need to 'borrow' from anyone though selling bonds (which is a form of borrowing) is useful to the government and to savers. It's a good safe investment which gives a reliable income and guaranteed repayment at 'term'.

The risk of hyperinflation arises if there is nothing, or very little, for people (or the government) to buy. That is not the case in the UK at the moment.

The money injection is desperately needed because suddenly people find themselves with no jobs and their employers with no money to pay them with! Look on it as 'replacement' money. We need it to keep the economy ticking over. It won't have to be 'repaid'.

HiPpyChick57 Thu 09-Apr-20 10:30:28

I agree TATT the poor and vulnerable will indeed suffer. I can see another long season of austerity and cutbacks ahead of us when we get back to “normal”

Nannan2 Thu 09-Apr-20 10:30:52

They cant just keep on upping and upping the retirement age,or else all the workforce is going to be full of VERY very old people and most would likely die before they can even retire..🤔what do gov't think uk citizens are,packhorses?sad

Kaggi60 Thu 09-Apr-20 10:31:48

I thought they was spending the pension fund what we been ripped off.

Nannan2 Thu 09-Apr-20 10:33:59

But MaizieD,they said,when it started,that chancellor was giving companies& businesses 'loans' so will have to be repaid?

Flowie Thu 09-Apr-20 10:35:08

I'm sure I read somewhere they are using the billions that was put aside in case of a war.

Tweedle24 Thu 09-Apr-20 10:36:47

I heard a discussion on the radio about this. The ‘expert’ said that “The Bank of England will print more money.” I did not hear how that would work but, I suppose, that, as all the Western countries will be in a similar situation, it will be something for the IMF.

Nannan2 Thu 09-Apr-20 10:38:03

Theres already worry on the disability& benefits website as theyve changed the universal credit payments,upping by £20(per wk,i think) but NOT the E.S.A ,nor tax credits.