Interesting Debt Thingy.

[Mr Speirs]

I think his solution (and something he has been campaigning for) is the abolition of the European Union.

It's not neccesarily placing blame or passing the buck to object to unelected commisioners getting invovled in Italian Politics and not allowing a referendum until their Budget is agreed. Ousting leaders and replacing them with unelected ex commisioners who won't question the ideal of the European Union and certainly won't give the Italian people a referendum about it.

Objecting to the bypassing of democracy certainly isn't placing blame and is pointing out the flaws of the system.

Personally I don't know enough about the EU to condemn of praise it but for a system so young, to be so deeply in trouble and seemingly no way out, apart from making Germany foot most of the bill and in return give them bigger control over the rest of Europe, has some serious issues.

[G]

Originally Posted by Mr Speirs

I think his solution (and something he has been campaigning for) is the abolition of the European Union.

I'd love to see the EU scrapped to but it's not really a viable option... Much like ww3 isn't... Although I'm sure Russia, Syria and China are slowly watching Europe bankrupting itself and cutting back on army/navy/RAF and thinking about starting it.

[arc123]

The UK cannot go about balancing monies owed to USA or other countries, becuase the money is owed to private banks - not to the country itself.

A total reform of economic policy is needed - Power for money creation needs to be taken back from the banks if we have any chance of changing this situation.

[Mr Speirs]

Originally Posted by G

I'd love to see the EU scrapped to but it's not really a viable option... Much like ww3 isn't... Although I'm sure Russia, Syria and China are slowly watching Europe bankrupting itself and cutting back on army/navy/RAF and thinking about starting it.

You're right. I think scrapped isn't going to happen. I think scaled back is a more appropriate response. The work it's done for trade between countries is a great thing but I think they should have less say politics and governing and law making.
The Euro currency should be scrapped and this idea of bailing other countries out should be scrapped.
Something or someone has to fail. It's a fact of life. Not everything can exponentially grow and grow. And so trying to whack a load of money that nobody has into keeping a sinking ship afloat.

[G]

Just to make things a little more interesting...

http://www.telegraph.co.uk/finance/f...s-markets.html

[Dave20046]

Originally Posted by -Ralph-

Phil is looking at it in the same way as a business looks at cashflow. Lets assume Phil buys a motorbike on credit. So long as Phil has sufficient cash reserve to pay the monthly repayments in months when his income is down, then he makes more than enough money to top up that cash reserve on months when the income is up, then the debt still gets repaid every month. If he's forecasting an extended period of no income which is going to deplete his cash reserves, he sells the bike and pays off the finance.

I regularly take finance on things if there is a 0% deal be had, even though I have the cash in the bank. It's improves my cash reserve for free, and I make interest on that cash reserve.

I'm also currently looking at offset mortgages in order that I can pay for EVERYTHING on a credit card, then pay off the card the day before I get paid (and within the 45 day interest free period), reduces the mortgage balance I'm paying interest on by several grand a month. Then instead of having my cash reserves sitting in a savings account it's also reducing my mortgage balance until I need it for something. It would mean every time I buy anything (including holidays), it's essentially borrowed against my house. There would be no such thing as saving up for something and paying cash. The biggest expense most people have is their repayment mortgage, and the biggest chunk of that monthly payment for most people our age is interest. Anything you can do to reduce that interest cost, makes you richer, and will help you pay off your mortgage sooner.

At the end of the day nobody else can say if somebody elses finances can sustain a borrowing, or whether they should or shouldn't be borrowing it. So long as the debt gets paid every month, where's the problem? The problem only occurs when people don't manage their finances properly, and allow themselves into a position where they can't afford to pay the debt. If your way of doing that is not to borrow, then that's fair enough and very responsible and commendable, but that doesn't mean everybody else should do the same.

sorry if this is obvious/wrong but wouldn't that only work* if your mortgage rate is high? if your lender allows overpayments (or go for the offset anyway then do this,as they generally allow unlimited over payments) then do as you plan but stash the cash in a high interest savings account then drop an overpayment... ideally when rates go up.
There are flexible savings accounts available at 8% (and beyond probably) at the mo


Edit:*optimally

[Biker Biggles]

Flexible savings accounts available at 8% at the mo

Tell me more.Im not aware of any that pay half that,at least none that are likely to have your money still there when you want it.

[G]

Show me these magic savings accounts that pay 8% interest!!!

You would be lucky to find a low to medium risk business investment pay 8%, and a bond investment won't pay you much more than 4% with large minimum investment sums. Normal savings won't pay over 2% unless they have ISA type terms.

Happy to be proven wrong those as I would love an 8% rate on my savings

[Dave20046]

Guilty of second hand info here, my dad mentioned he'd got one with first direct ~ you have to put cash in there on a monthly basis but he reckoned he could get his money out when he wanted . I'm sure I'd seen some 8% savings accounts on Martin Lewis' email but you've got me wondering now!
anyway my actual point stands to be ridiculed, my offset mortgage rate is half that of my savings account.

[Bri w]

Legal & General inflation protected 5yr bond minimum return 17.5%
Meteor Income 6yr deposit plan 8%
Scottish Widows 4.6%

Best I've seen for instant access accounts is 3.2%