UK interest costs 'equal to entire Transport bill'


	UK interest costs 'equal to entire Transport bill'

JICWyllie

11-4-2009 1:03 PM

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tags:

1-policy, 1-subsidies, 2-consequences, 2-record, 2-risks, 3-forecast, 3-researchj, 4-uk

JICWyllie says:

Interest rates will have to go up increasing public debt costs even further, as the value of sterling falls on the currency markets.

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<div style="margin: 12px 0px; font-family: arial; color: #333333; background: #ffffff; border: solid 4px #e5e5e5; width: 100%; clear: left;"><div class="CM_CTB_Content_Wrap" style="margin: 0px; padding: 0px;background-color: #ffffff;"><div style="border-bottom: solid 1px #dcdcdc; white-space: nowrap; margin-bottom: 8px; background-color: #eeeeee ;background-image: url(http://clipmarks.com/images/source-bg.gif); background-repeat: repeat-x; height: 24px; line-height: 24px; vertical-align: middle; padding-bottom: 4px; color: #666666; font-size: 10px;" ><a href="http://clipmarks.com/clip-to-blog/" title="see clips that are hot right now"><img src="http://content.clipmarks.com/blog_embed/1ec74899-d371-4ea4-802c-8cfd959e9b6f/F5C99574-360A-4D61-B022-376936634555/" alt="" width="19" height="19" border="0" style="vertical-align: middle; margin: 0px 4px; display: inline; border: none; float:none;" /></a>clipped from <a title="http://www.telegraph.co.uk/finance/economics/6496680/UK-interest-costs-equal-to-entire-Transport-bill.html" href="http://www.telegraph.co.uk/finance/economics/6496680/UK-interest-costs-equal-to-entire-Transport-bill.html" style="font-size: 11px;">www.telegraph.co.uk</a></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.telegraph.co.uk/finance/economics/6496680/UK-interest-costs-equal-to-entire-Transport-bill.html"><P>
The IMF singled out the UK as being at significant risk from the threat of 
  rising debt interest costs as it absorbs the effects of the financial and 
  economic crisis. It said that the proportion of UK taxes that will go 
  towards financing the national debt will, in five years' time, be double 
  what it was just before the onset of the crisis.
</P></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.telegraph.co.uk/finance/economics/6496680/UK-interest-costs-equal-to-entire-Transport-bill.html"><P>
It said: "Just the increase in interest spending in the United Kingdom is 
  about twice annual outlays for environmental protection and is equivalent to 
  annual spending on public transportation."
</P></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.telegraph.co.uk/finance/economics/6496680/UK-interest-costs-equal-to-entire-Transport-bill.html"><P>
The surprising bluntness of the warning, which was contained in a broader 
  document analysing the fiscal situation in a variety of countries, will be 
  seen as a direct rebuke to Gordon Brown, who repeatedly ignored IMF advice 
  in previous years to cut the deficit and leave the UK better-placed for 
  future downturns. 
</P></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.telegraph.co.uk/finance/economics/6496680/UK-interest-costs-equal-to-entire-Transport-bill.html">debt servicing costs should not surpass 
  levels seen in the 1980s, they are extremely sensitive to a sudden jump in 
  interest rates</blockquote></div><div style="margin: 0px 6px 6px 4px;"><table style="font-size: 11px;border-spacing: 0px;padding: 0px;" cellpadding="0" cellspacing="0" width="100%"><tr><td style="background:transparent;border-width:0px;padding:0px;">&nbsp;</td><td align="right" style="background:transparent;border-width:0px;padding:0px;width:107px" width="107"><a href="http://clipmarks.com/share/F5C99574-360A-4D61-B022-376936634555/blog/" title="blog or email this clip"><img src="http://content6.clipmarks.com/images/c2b-foot.png" border="0" alt="blog it" width="107" height="17" style="border-width:0px;padding:0px;margin:0px;" /></a></td></tr></table></div></div>