BRITAIN: ‘ GEORGE OSBORNE’S AUTUMN STATEMENT KEY POINTS ‘

#AceFinanceNews – BRITAIN – Dec.03 – Well the Chancellor has updated us on the state of the economy since his last statement: Here it is in key points courtesy of BBC UK reporting live. Read More and Share: Editor.    

' Key points of 2014 Autumn Statement: At-a-glanceScreenshot from 2014-12-03 14:57:24

‘ Key points of 2014 Autumn Statement: At-a-glanceScreenshot from 2014-12-03 14:57:24

State of the economy: 

UK fastest growing economy in the G7

3% growth forecast in 2014, up from 2.7% predicted in March

2.4% growth forecast in 2015, followed by 2.2%, 2.4%, 2.3% and 2.3% in the following four years

500,000 new jobs created this year. 85% of new jobs full-time

Unemployment set to fall to 5.4% in 2015

Inflation predicted to be 1.5% in 2014, falling to 1.2% in 2015

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For sale signs

Stamp duty: 

Reform of residential property stamp duty so that rates apply only to that part of the property price that falls within each band

0% paid for the first £125,000 then 2% on the portion up to £250,000

5% up to £925,000, then 10% up to £1.5m; 12% on anything above that, saving £4,500 on average priced home

Changes to come into effect at midnight on Thursday, 4 December

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Pound coins and paper money

Public borrowing/deficit:

Deficit ‘cut in half’ since 2010

Borrowing set to fall from £97.5bn in 2013-14 to £91.3bn in 2014-15.

Deficit projected to fall to £75.9bn in 2015, £40.9bn in 2016, £14.5bn in 2017 before reaching a £4bn surplus in 2018

By 2019-20 Britain will have a surplus of £23bn

Debt as a share of GDP to rise from 80.4% this year to 81.1% next year before falling in every year. reaching 72.8% in 2019-20

Tax receipts up to 2017-18 forecast to be £23bn lower than predicted

World War One debt to be repaid

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Traffic seen in wing mirror

Energy and fuel:

Fuel duty to be frozen

Sovereign wealth fund for north of England to keep benefits of shale gas exploration

Immediate reduction in oil industry supplementary charge from 32% to 30%

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Union Jack piggy banks

Savings and pensions:

ISAs to be transferrable to partners tax free

ISA threshold increases from £15,000 to £15,240 next April

Tax free annuities for dependents of people who die under 75

Commitment to complete public service pension reforms, saving £1.3bn a year

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Gatwick

Personal and business taxation:

Air Passenger Duty to be scrapped for under-12s from 1 May next year and for under-16s the following year

Personal tax allowance to increase to £10,600 next April

World War One debt to be repaid

Inheritance tax to be cut for families of aid workers who die in course of duty

55% death tax passed on to loved ones abolished

Libor fines to support Gurkhas and their families

Higher rate income tax threshold to rise to £42,385 next year

VAT paid by hospices and search and rescue organisations to be refunded

Introduce 25% tax on profits generated by multi-nationals that are shifted out of the UK, set to raise £1bn over five years

Bank profits which can be offset by losses for tax purposes to be limited to 50%

New £90,000 charge for non-doms resident in the UK for 17 of the past 20 years

Inflation-linked increase in business rates capped at 2%

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Man pushing buggy

Welfare:

Welfare spending to be £1bn lower than forecast in March

Two year freeze in working-age benefits (first announced in October)

Migrants to lose unemployment benefits if they have “no prospect” of work after six weeks

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Graduation

Health and education:

£2bn extra every year until 2020 for the NHS

GP services to get £1.2bn in extra funds from bank foreign exchange manipulation fines

Employment Allowance extended to carers

£10,000 loans for postgraduate students studying for masters degrees

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Factory

Business and science:

Business rates to be reviewed

Theatre tax break extended to orchestras

Research and development tax credit increased for small and medium-sized (SMEs) firms

Support extended to small businesses with £500m of bank lending plus £400m government-backed venture capital funds which invest in SMEs

New tax credit for children’s TV producers

£45m package of support for exporters

Expand tax relief on business investment in flood defences

Old pacer carriages on Northern Rail and the Trans-Pennine Express replaced with new and modern trains

National Insurance on young apprentices abolished

Britain awarded the lead role in the international effort to exploreMars

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Flags

Scotland, Wales and Northern Ireland:

Agreement reached on full devolution of business rates to WelshGovernment

Income tax to be devolved in full to Scottish Parliament

Corporation tax devolved to Northern Ireland if the Stormont executive can manage the “financial implications

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Housebuilding

Housing/infrastructure/transport:

£1.5bn for 84 roads projects in England

£2bn for flood defence schemes in England

Tendering for Northern Rail and Trans-Pennine Express franchises to replace pacer carriages with modern trains. 

Source: 

#ANS2014 

#borrowing, #economy, #fuel-duty, #health, #pensions, #public-debt, #savings, #stamp-duty, #taxation, #welfare

VIDEO: ‘ TOTAL US DEBT RISES TO OVER $18 TRILLION A JUMP OF 70% UNDER OBAMA ‘

#AceFinanceNews – UNITED STATES – Dec.03 – Last week, total US debt was a meager $17,963,753,617,957.26. Two days later, as updated today, on Black Friday, total outstanding US public debt just hit a new historic level which probably would be better associated with a red colour: as of the last work day of November, total US public debt just surpassed $18 trillion for the first time, or $18,005,549,328,561.45 to be precise, of which debt held by the public rose to $12,922,681,725,432.94, an increase of $32 billion in one day.

Original Post: December 2, 2014

Provided By: InvestmentWatch:

Look Who Just Turned 18

http://www.treasurydirect.gov/NP/debt/current

It also means that total US debt to nominal GDP as of Sept 30, which was $17.555 trillion, is now 103%. Keep in mind this GDP number was artificially increased by about half a trillion dollars a year ago thanks to the “benefit” of R&D and intangibles. Without said definitional change, debt/GDP would now be about 106%.

Ponzi: Treasury Issues $1T in New Debt in 8 Weeks—To Pay Old Debt

The Daily Treasury Statement that was released Wednesday afternoon as Americans were preparing to celebrate Thanksgiving revealed that the U.S. Treasury has been forced to issue $1,040,965,000,000 in new debt since fiscal 2015 started just eight weeks ago in order to raise themoney to pay off Treasury securities that were maturing and to cover new deficit spending by the government.

During those eight weeks, Treasury took in $341,591,000,000 in revenues. That was a record for the period between Oct. 1 and Nov. 25. But that record $341,591,000,000 in revenues was not enough to finance ongoing government spending let alone pay off old debt that matured.

The only way the Treasury could handle the $942,103,000,000 in old debt that matured during the period plus finance the new deficit spending the government engaged in was to roll over the old debt into new debt and issue enough additional new debt to cover the new deficit spending.

This mode of financing the federal government resembles what the Securities and Exchange Commission calls a Ponzi scheme. “A Ponzi scheme,” says the Securities and Exchange Commission, “is an investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors,” says the Securities and Exchange Commission.

“With little or no legitimate earnings, the schemes require a consistent flow of money from new investors to continue,” explains the SEC. “Ponzi schemes tend to collapse when it becomes difficult to recruit new investors or when a large number of investors ask to cash out.”

http://cnsnews.com/mrctv-blog/terence-p-jeffrey/ponzi-treasury-issues-1t-new-debt-8-weeks-pay-old-debt

http://www.usdebtclock.org/

The other side of the coin is that US inflation has been understated by more than 3% for the last twenty years.  That means US GDP was overstated by at least 3% for each of the last twenty years.  Correcting that GDP for 3% over 20 years cuts it in half.  So real US GDP is only about $8.5 trillion instead of the assumed $17 trillion.  That makes US debt to GDP ratio approach Japan’s even if we just omit the unfunded liabilities.  Keep buying those US bonds – they are backed by the best lies of the Fed and the US BLS

$500 billion was added to the US GDP on July 1, 2013,  thanks to itunes and other intangibles.

US GDP Will Be Revised Higher By $500 Billion Following Addition Of “Intangibles” To Economy

http://www.zerohedge.com/news/2013-04-21/us-gdp-will-be-revised-higher-5…

Federal Reserve Confirms Biggest Foreign Gold Withdrawal In Over Ten Years

http://www.zerohedge.com/news/2014-11-29/federal-reserve-confirms-biggest-foreign-gold-withdrawal-over-ten-years

#deficit-spending, #nominal-gdp, #ponzi-scheme, #treasury, #u-s-debt, #us-public-debt