G20 $250bn Trade Credits actually just $2.4bn

A poster named Sledgehead over at HousePriceCrash has delved into Gordon Browns G20 trade credit agreement and explains what the figures mean.

Okay, say you have a credit card with a £10k limit. You can roll a cedit balance (debt) of £10k from one month to the next, or pay it off in full and run up another £10k each month, or a combination of both.

Either way, Gordon Brown will count this as £10k credit PER MONTH, or as he likes to say, £120k per annum

But the prestidigitation does not stop there. Oh no. Gordon would now ask you how long you wanted to keep your credit card. If you said 10 years he’d multiply the yearly credit by this figure, ie he’d count your total credit as £120k x 10 = £1,200,000. So, to recap:

Your credit card limit : £10,000

Gordon’s view of the credit extended to you : £1,200,000

and that folks is how you make $250bn from $2.4bn, oh and remeber, these are merely trade credy guarantees, not actual credit itself.

It’s like a Gordon Brown Budget. Detail is in the small print, and it’s never what he makes it out to be.