This is the man who would reorder our entire financial system

Our average debt in the UK is 14 years old.


Our debt has, on average, 14 years to maturity.

There is, you know, a difference between how long ago we borrowed the money and how long we\’ve got until we have to pay it back.

A fairly important difference even.

8 thoughts on “This is the man who would reorder our entire financial system”

  1. So much wrong with that Ritchie’s investment advice (Which I’m not sure he is licenced to give), and so little time.

    1) Bond Vigilantes (Who Ritchie says don’t exist, until they are given an opportunity, in which case they do) – they don’t aim to bring down an economy. They aim to make money out of movements in bond prices. Its Government actions over years that bring down economies.

    2) 14 years old – Laughable

    3) ‘ Debt ratios very low compared with other countries’ – Ahh, not so much. Yes its lower (I wouldn’t term 80% of GDP ‘Very’ low) than Greece, Italy Ireland, Portugal, those paragons of Financial probity, but is on a par with Germany, France and the Euro area as a whole. And thats before we look at the UK’s position relative to the rest of the world.

    4) ‘We’re doing fine’ – Where do I start ?

    5) ‘Debt is so much lower than throughout most of our history’ – Government debt is actually the highest (at around GBP 1.3 Trillion) it has ever been, and is projected to grow to GBP 1.75 Trillion by 2014

    6) The Government is capable of using QE to create significant amounts of cash if need be without having any impact on real interest rates or long term inflation’ – I think Ritchie forget to add any effect on GDP to that sentence.

    7) ‘UK Gilts look one of the best places to be right now’ – with near record low (And negative real) yields across the curve, surging government debt and deficits and inflation near 5%, I guess relative to setting fire to tenners, it might be passable.

    8) ‘If stimulus were provided to the economy, the prospects for growth might exist’ – It was, and they didn’t.

    As to the other fantasy socialist wank ? Meh.

    Alternatively, it might however be worth keeping a copy of this investment advice, so, 3 years down the road, when my 30 year yield is half the rate of interest on a fixed deposit, and I’m 30% down on my capital invested, I could have a go at suing him ?

  2. Our debt ratios are very low compared with most countries. You don’t believe me? Then look at this chart of debt to GDP ratios for EU countries using Eurostat data, (hat tip to RWER):

    – a chart with only ten countries in it. Brilliant! And as Worzel points out, yes we are better off than PIIG.

    As he likes Eurostat, how about a chart with all European countries on it?

  3. ukliberty, that’s great, thank you.

    Basically it says that we’re:

    1) in a better position than Greece and Italy (who isn’t?);

    2) not quite as bad as Portugal, Ireland and Belgium (why Belgium?);

    3) about the same as Germany, France & Hungary; and

    4) worse than every other EU member, including Spain (which is supposed to be one of the next ones to go bust).

    It almost makes me wish we could be more like Sweden, with half our level of government debt.

  4. JustAnotherTaxpayer

    3) about the same as Germany, France & Hungary; and

    Of which only France has a deficit vaguely comparable with ours, Germany and Hungary about half as much.

    The two-axis graphs comparing deficit and debt are much more exciting.

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