the UK offers to loan £10bn to R.O.I.

DiCe! · 22 Nov 2010 at 13:19

we will make money on it. why not do it.

edit, about 10 replies from when i opened the page to posting lol

Glaucus · 22 Nov 2010 at 13:21

Like the bank bail out it's an investment and longterm profit, it's not a net cost like over expediture.

MatteH Oxford · 22 Nov 2010 at 13:22

jp_bl_68 said:
As others have pointed out, we stand to lose more by not loaning them the money.

The Uk is about £900 odd Billion in the Red, it's slipping £160 billion further into the red each year & the total debt liabilities is something like £4.8 Trillion.

How on earth can the UK bail out the Irish when it's in a far worse financial situation? :confused:

Gilly · 22 Nov 2010 at 13:25

Brian8bit said:
Because those don't exist to people on the mainland unless they served and toured here.

Wrong.

Brian8bit said:
As far as the majority of mainland Britain is concerned Northern Ireland doesn't exist and Ireland is already one country.

Right, on average.

Cosimo · 22 Nov 2010 at 13:28

Given that they are one of our major trading partners and with the credit our banks have given we wouldn’t want their economy to implode. I would have thought that the impact of that would be far greater than a trivial £7 billion pound loan to help stabilise their economy. I would have also thought that our membership of the IMF doesn’t give us much choice in the matter.

Vonhelmet · 22 Nov 2010 at 13:29

MatteH Oxford said:
The Uk is about £900 odd Billion in the Red, it's slipping £160 billion further into the red each year & the total debt liabilities is something like £4.8 Trillion.

How on earth can the UK bail out the Irish when it's in a far worse financial situation?

As has been said... If the Irish go under, our economy will suffer even more. £10bn on loan is a sound investment to avoid their economy pulling ours down any further.

Edrof · 22 Nov 2010 at 13:31

TBH it's time Ireland, Scotland, England, Wales and Ulster stopped hating each other.

Cosimo · 22 Nov 2010 at 13:34

MatteH Oxford said:
How on earth can the UK bail out the Irish when it's in a far worse financial situation?

Their economy has practically gone bust ours has not and we're not bailing them out. Our contribution will be part of the EU/IMF rescue package.

div0 · 22 Nov 2010 at 13:36

MatteH Oxford said:
How on earth can the UK bail out the Irish when it's in a far worse financial situation?

Maybe because the UK isn't actually in a worse situation?

arknor · 22 Nov 2010 at 13:39

cm1179 said:
how can we afford to do this?

they will most likely print 7 billion pound :rolleyes:

didnt you know its just paper the goverment loves printing lots of it :mad:

LordSplodge · 22 Nov 2010 at 13:41

Ahh the Internet where everybody is an economic expert.

1. 7 billion isn't that much.
2. We will get it back and more.
3. Ireland is not to be confused with Northern Ireland.

Simples.

jumpy · 22 Nov 2010 at 13:41

Bloody scroungers, they ought to get on their bikes and find a job instead of sitting about waiting for handouts, and if they refuse to comply they'll have their benefit cut[/tebbit]

oh, wait... that's not right ..er hmmm :rolleyes:

MikeHunt79 · 22 Nov 2010 at 13:45

Gaygle said:
:/

Out of interest, how much are we trying to save this year with all of these cutbacks?

Around £7,000,000,000 I think...

MatteH Oxford · 22 Nov 2010 at 13:45

simulatorman said:
Their economy has practically gone bust ours has not and we're not bailing them out. Our contribution will be part of the EU/IMF rescue package.

The UK is nearly £1 trillion in the red & slips £160 Billion further in annually, so technically, the UK is seriously bust .What's the irish figures, pretty sure nowhere near as bad as the UK?.
Fundamentally the UK owes more in relation to GDP than Ireland AFAIK, hence it is in worse shape financially. How exactly the UK gets away with it & Ireland suffers I'm not sure.
The only difference I can see is that they are part of the EU and can't print 'funny money' in the form of quantitative easing.

Vonhelmet · 22 Nov 2010 at 13:49

MatteH Oxford said:
Fundamentally the UK owes more in relation to GDP than Ireland AFAIK, hence it is worse shape financially. How exactly the UK gets away with it & Ireland suffers I'm not sure.

According to this morning's Metro, our debt as a percentage of GDP is 65.5%, while Ireland's is 64.5%. Hardly a massive difference, especially not when you consider that a significant chunk of our GDP depends on Ireland!

MatteH Oxford · 22 Nov 2010 at 13:51

vonhelmet said:
According to this morning's Metro, our debt as a percentage of GDP is 65.5%, while Ireland's is 64.5%. Hardly a massive difference, especially not when you consider that a significant chunk of our GDP depends on Ireland!

What's their annual deficit & total debt liabilities?

Vonhelmet · 22 Nov 2010 at 13:53

MatteH Oxford said:
What's their annual deficit & total debt liabilities?

Pass. However, Ireland has higher unemployment, vastly higher unemployment benefits, and has lower corporation tax, so it's quite possible that their deficit is, in relative terms, larger than ours.

MatteH Oxford · 22 Nov 2010 at 13:56

vonhelmet said:
Pass. However, Ireland has higher unemployment, vastly higher unemployment benefits, and has lower corporation tax, so it's quite possible that their deficit is, in relative terms, larger than ours.

A lower Tax in Ireland rate does not mean that the deficit would be automatically higher, some countries/tax havens/colonies have low tax & have little public debt

Unemployment figures are unreliable unless they measure the figures in the same way as the UK, which is pretty doubtful!!

RDM · 22 Nov 2010 at 14:02

MatteH Oxford said:
Fundamentally the UK owes more in relation to GDP than Ireland AFAIK, hence it is in worse shape financially. How exactly the UK gets away with it & Ireland suffers I'm not sure.

Isn't that a touch simplistic though? The UK has a much better chance of making money that can be used to pay off the debt, Ireland much less so. So even though the Irish debt is lower, her ability to pay is much worse. This makes it more of a risk and therefore more costly for them to borrow.

MatteH Oxford · 22 Nov 2010 at 14:05

RDM said:
Isn't that a touch simplistic though? The UK has a much better chance of making money that can be used to pay off the debt, Ireland much less so. So even though the Irish debt is lower, her ability to pay is much worse. This makes it more of a risk and therefore more costly for them to borrow.

it would be good to see their annual deficit to compare it the UK, it would make things clearer but that sort of information isn't always forthcoming. Portugal are in the news atm for fudging their liabilities!

The UK isn't paying it's debt btw, it's slipping further & further into the red & has been for years!. If we print money to dilute the relative (real) value of that debt.........that's how wars start isn't it?