Munchkin:
[ Staying in the EU helps out those same banks A LOT. 
So will leaving the EU make bankers become less like blood sucking leeches then? Or will it be the case that they’re “our” blood sucking leeches?
How about the UK National debt of £1.7 trillion (approx), does anyone know if that’s secured on the country like a gigantic mortgage or is it unsecured?
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No, but leaving the EU will lay bare the truth that “anyone can default” and foreign banks will BEG whatever government is by then running things over here to “Keep the faith”.
Look at the way Carney lies about the prospects of an “interest rate rise in the not too distant future”.
The interest rate futures market has a rise to beyond 2% in the next 5 years - practically impossible!
Rates are going nowhere anytime soon - but if the public knew that - they’d stop buying those fixed rate mortgage “products” which trick people (using fear again) into “paying slightly over the odds” for the peace of mind that the rate is fixed. The banks lay that upside - which they make money on, because they never have to pay out on it for nearly a decade now!
Our national debt is effectively unsecured. It’s all outstanding in our bonds already in issue. New bonds are issued each month, as Osbourne needs to borrow more and more just to pay to keep the lights on these days. Other chancellors have done the same before him, and no doubt whomever succeeds him will soon be taught “don’t worry about borrowing too much” as well. The price the bonds go for in tender auction - depicts the interest rate for that month’s issue. If bond prices fall - the interest rate on next month’s bonds will then RISE. If it’s perceived that there is a chance of default - the bond prices will go into free-fall, and the implied rate will hike up to very high levels - as happened in Greece.
If the UK defaults it’s bonds (As Russia did in the 90’s) - the world’s lenders who lost that money - won’t lend money again for quite a while… But that’s ALL they can do.
Who goes to war over an unpaid debt these days?
I repeat then:
“Defaulting an unsecured debt means you cannot borrow more unsecured debt for some time after…”
Fine - if you can live within your means for the time being… If you can’t? - Better keep on paying then - just so you can re-max out the credit card again next month! Lenders make a LOT of extra interest that way…
Tsipras should have defaulted the entire Greek debt, and printed Euros to get by with. When the ECB bans them from doing thus, they put the rest of the Euros into free-fall, as the rest of the world won’t know which euros are “good” and which were “worthless paper printed by the Greek banks”.
I’ve got a Confederate States of America dollar bill - which is worth less than the paper it’s written on, despite being an antique and historical curiosity…
There’s no option to split up the Euros though - so they’d ALL go down the pan. The ECB would have to let Greece go, and beg them not to print any more Euros - by offering them some “Free” QE ones of their own as a “Final Plunge”. This would of course have been illegal under EU law - but Tsipras had the chance to make Greek law fly in the face of EU law - to expose the loss of sovereignty, and bring the entire EU project crashing down under it’s own weight of “No Confidence”.
Alas - thought the only way to get more money out of the ECB though - was to play it legally, and duely fell upon his proverbial knees to become the biggest lickcock in History, traitor to his people, worst of the worst Prime minister… No wonder Yanis Varoufakis walked out in disgust! 