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to think that will all the massive cuts that are being made it is odd

(168 Posts)
2shoes Mon 22-Nov-10 08:35:38

that the government can lend another country billions....
now I know there will be a good reason for them doing it, but if we are so in debt, how the hell can we find money to lend to others??

BonniePrinceBilly Mon 22-Nov-10 08:39:33

you borrow it from other people/countries.Tis how it works. And its only out of pure self-interest anyway.

2shoes Mon 22-Nov-10 08:41:33

see that is what I wondered......the self interest bit
can someone explain that bit in laymans terms please

tigerbear Mon 22-Nov-10 08:42:24

2shoes - I agree, I really don't understand this either. Where does the money come from if we're in a global recession??

Ewe Mon 22-Nov-10 08:50:09

Some people might argue that our financial situation in the UK isn't actually that bad and that the cuts are driven by ideology not financial necessity.

ANTagony Mon 22-Nov-10 09:00:38

Ireland can't borrow from anyone other than the European central bank because of their poor credit rating. Ours (credit rating) isn't quite as bad so we can borrow at cheaper rates.

Ireland is in a borrowing trap, we're not, so we borrow the money at a better rate and lend it to them at around that rate. Generously its called a neighbourly gesture. We are close neighbours with Ireland and have long historic ties and faith that the money being loaned will be repaid to us with the appropriate interest.

sarah293 Mon 22-Nov-10 09:02:03

Message withdrawn

ANTagony Mon 22-Nov-10 09:02:19

In simple terms it is a favour that no doubt we will recall at some convenient point to ourselves in the future. Like as a vote (or several) in the European parliament for something we want to get passed or blocked.

2shoes Mon 22-Nov-10 09:04:57

so we are having cuts made that in some cases are really going to affect family's and maybe wreck them, yet we can do another country a "favor"

ANTagony Mon 22-Nov-10 09:07:08

But its not costing us anything (so long as they keep up the repayments). Its not changing or adding to the cuts we are seeing. Its not taking away from families in this country.

Appletrees Mon 22-Nov-10 09:16:37

It's in our interstate.. one of our nationalized banks I h
Volume exposed there too. But I think the price should be coparable corp tax.

Barbeasty Mon 22-Nov-10 09:22:52

Ireland is one of our biggest export markets, so if things get too bad over there we will suffer as the things we produce won't be bought and the UK's income will fall.

You could say we are lending them money to give us back twice- first by buying our stuff and then as a repayment with interest. That's the theory, anyway...

Diamondback Mon 22-Nov-10 09:27:39

Yeah, let's force Ireland to push up their corporate tax and thereby take away the only thing they've got going for their economy at the moment and remove any chance that they'll pay us all the money back and get in the black - that's a great idea!

KerryMumbles Mon 22-Nov-10 09:38:05

Message withdrawn at poster's request.

KerryMumbles Mon 22-Nov-10 09:40:57

Message withdrawn at poster's request.

KerryMumbles Mon 22-Nov-10 09:42:03

Message withdrawn at poster's request.

curlymama Mon 22-Nov-10 09:42:21

Seems odd to me too.

They are meant to keep up the repayments and pay us intrest, but what if they can't?

They've already shafted us with the corporate tax thing.

BonniePrinceBilly Mon 22-Nov-10 09:49:27

<applauds KerryMumbles>

You could just think of it as reparations, which would be appropriate.

KerryMumbles Mon 22-Nov-10 09:58:56

Message withdrawn at poster's request.

ANTagony Mon 22-Nov-10 10:03:37

The UK government (not England) have offered a loan significantly beyond the amount they under EU membership are obliged to contribute to the European monetary fund. I agree that it serves self interest.

IntergalacticHussy Mon 22-Nov-10 10:11:01

Global capitalism just doesn't work.

If ireland can't repay us (which seems very likely), it will have increased our legendary deficit by over 7 billion.

Meanwhile meanwhile our forests (i.e the very air we breathe) are being sold off to the highest bidder; money set aside for public services is being handed over private (tory) enterprise.

Poor people are no longer able to get fucking divorced or mount any kind of legal challenge; others are being moved out of their homes because they've either 'been there too long' in the case of council tenants or happen to live in an area with extortionate rents in the case of those renting privately and claiming housing benefit.

Tens of thousands of frontline nursing jobs are now at risk despite so called ring fencing; most of our children will struggle to pay off crippling debts of higher education, meanwhile their future careers are continually being outsourced to nations which pay lower wages. oh but that's ok because of fucking all powerful market forces which can't be questioned, which can't be challenged, which can't be opposed! angry

And are we rioting? are we demanding heads on spikes? With one recent notable exception the answer is 'no'. We're sitting at home, watching idiots maim and kill wild animals in the name of entertainment, or morons reciting other people's shitty old songs. And then arguing about who we hate the most!

'Great' Britain indeed...

BonniePrinceBilly Mon 22-Nov-10 10:20:29

And you don't think that arguing about a LOAN to Ireland that is completely unrelated to your domestic budget isn't just another distraction trick?
Divide and rule, and shoot yourself in the foot.

babybarrister Mon 22-Nov-10 10:28:34

Message withdrawn at poster's request.

BonniePrinceBilly Mon 22-Nov-10 10:46:21

FFS, if we bring the corpo tax up to your level we will have no business left and will never be able to pay back the loans!

PatFig Mon 22-Nov-10 10:49:04

If they are getting our money I think they should share the free cheese with us

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