^ ACE, like the Eton/Oxford Uni, at vast expense educated UK PM, Camoron, you have failed to understand the difference between debt and deficit.
The UK has not paid down one-third of its debt; the national debt continues to rise at around £100bn each year, at over £1 trillion cumulative already.
Through the buying of UK govt debt, "gilts", by the Bank of England, with money created out of nothing, i.e. direct debt monetisation, the UK govt is now spending and borrowing more than the last administration, at the height of the post Lehmans 2008 crash, and hence why the UK has lost its AAA credit status with two rating agencies.
What you meant was the deficit, not the debt. The deficit has been artificially massaged down to around £100bn by accounting tricks, like moving the Post Office's pension surplus onto the government's 'assets' column, whilst ignoring the corresponding liabilities - paying out those pensions in the future.
The UK is running a structural budget deficit of around 8-10% of GDP, higher than any other major developed economy, and only exceeded by the likes of Ireland, which is to all intents and purposes bankrupt.
As to sub-prime and predatory loans being a good thing, to boost car sales, to make the UK and US look healthy and in recovery, whilst Europe is collapsing, I suggest you recall 2007, when many experts thought the similar housing bubble, inflated by sub-prime loans, could continue to infinity, just shortly before it collapsed. Many, at least 10-20%, of those now receiving car loans in the UK and US, will not and never could make those monthly payments, and will default. see the Reuters report above on this point.
As to printing money, do you really think that is a good thing? My god. the brainwashing has been very successful.
You might believe the official, doctored inflation stats, but it is widely accepted that, thanks to QE, with £375bn in the UK and over $2 trillion in the U.S., plus anywhere up to $20 trillion in bailouts and backdoor support of the major banks by the Fed, the BoE and the ECB in total, by the creation out of thin air of money, real inflation for ordinary people, spending the majority of their little income on food, fuel and housing, is running at around 10%, against flat or declining wage levels.
People's real incomes in the UK and US have collapsed, since the 'recovery' of 2009, caused by money printing, sending prices of necessities, like food and fuel, wild, whilst unemployment has risen, and those still in jobs are seeing no pay rises or even pay cuts.
The only way to square the circle, to ensure rising new car sales, against this disastrous background, is either, admit it is all over, the jig's up, like the European people have basically done, or pretend, by conning people that by borrowing money they can still have that shiny new car, that they once financed back in the noughties, through remortgaging against rising house prices, and try to convince them with wall to wall media that rising car sales means the good times are back, and hence keep the ponzi scheme afloat for a while longer.
Of course it won't and can't mathematically work, as 2008's bust showed, but it will allow a few very rich, greedy, sociopathic people in the US and UK to extract just a bit more wealth from the dumb schmucks falling for this scam, before it all blows up again.
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X1 went for her 22000 km service 2 April. Keep her and buy myself a Ford Ranger DC XLT 2wd for more variety and practicality is the correct way to go about it - for me. The 435i will spend weekdays in the garage. Yet I want the BMW and will order it.
, get a grip, what a ridiculous rant. Since you are absolutely certain that the Auto industry faces imminent doom. Why don't you just get one of those 0% loans and go short auto stocks using some highly leveraged strategy (some way out the money put options through a spread betting firm will work nicely). You should be fantastically wealthy before the end of the year. Or do you not have sufficient belief in your own BS?
