OHHH FFS NOW IM ANOYED!!!!!!!!!!!!!!!
OH COME ON, HOW IN YOUR TINY LITTLE WORLD IS IT IN ANY WAY A RESPONSIBLE WAY TO ACT.
ITS ALREADY POINTLESS HAVING A SAVINGS ACCOUNT, AND I HAD BEEN LOOKIN FOREWARD TO GOING TO DO SOME WORK IN AUSTRALIA, BUT THIS LATEST FEKING PIECE OF UNBLEIVEBLE IDIOCY MIGHT MAK THIS A NON STARTER AS UST AS £’S START TO RECOVER A LITTLE BI THIS PLAN THOUHT UP BY MONKEYS WHLST TAKING A DUMP GOIG TO MAKE THAT A VERY EXPENSIVE WAY TO PISS MONEY INTO A FREEFALLING EXCHANGE RATE SHAPED URINAL.
mIHT ASK FOR MY PAY TO BE TRANSFERED O zIMBABWE DOLLARS, AS THEYR GOING TO LOOK QUITE STABLE SOON.Posted 9 years agojonbMember
Quantitative Easing. The only way we can afford to pay the national debt is to raise inflation so it effectively becomes less.
And yes even if we don’t hit high inflation levels the pound will drop like a stone as people have no confidence in it. I’m going to stock up on bike bits now before its £200 for a deore mech.Posted 9 years agomolgripsSubscriber
Inflation is going down and down, possibly negative. Banks have no money to lend out. Solution – print more. Inflation can go up a bit (in the future) and still be within target range. Side effects include a lower exchange rate, which means that people can afford the stuff we export and our economy is boosted.
Seems fine to me. What’s good for you isn’t necessarily what’s good for the economy. Think of the greater good.Posted 9 years ago
show me an example of where printing money has worked?
I’m sensible, i went to uni, i have a student loan, but have aproximately the same ammount in savings as as well. Yet if inflation goes up, my loan goes up with it, and my savings plumet in value.
Unless yur a mortgaged up to the hilt idiot or a banke this benifits no one. Say in an extreem case the govenment doubles the money in circulation, its not free money, your moneys been halved in value. Any printed money realy is a stealth tax on anyone sensible enough to have savings.Posted 9 years agoIanMunroMember
Any printed money realy is a stealth tax on anyone sensible enough to have savings.
Presumably more money must be printed all the time, otherwise the total UK currency would be the same as in 1913 when we abandoned the gold standard.Posted 9 years ago
So printing more money would appear a normal occurance. Which makes the question – what rate of printing is considered normal, and what rate means you have a picture of Mugabe on the note? Genunine question as I know nothing about economics.vimtoMember
Amount to print should grow in line with amount of goods and services sold, the theory goes that if you keep the growth rates the same then there is no inflation. As government is scared of deflation and as it also wants to decrease the real value of its debt then it may well create more money.Posted 9 years agoTandemJeremyMember
nflation is going down and down, possibly negative. Banks have no money to lend out. Solution – print more. Inflation can go up a bit (in the future) and still be within target range. Side effects include a lower exchange rate, which means that people can afford the stuff we export and our economy is boosted.
Seems fine to me. What’s good for you isn’t necessarily what’s good for the economy. Think of the greater good.
Is the right answer. Everyone in the G8 is in brad agreement about what to do – Browns thinking is fairly mainstream on this – the only one with a different answer is toryboy cameron whos answer is too slash public spending – we we know what happened last time this was tried. Anyone else remembr the 80s Tory economic disasters.Posted 9 years agoCarbisMember
If you know nothing about economics I have been recommend “Sex Drugs and Economics” by Diane Coyle.
Gordon Brown’s economic policies have led to the return of the boom and bust 7 year cycle. Part of his first budget when Labour got into power was to put tax on company pension funds, the impact of this was to lead to the closure of most to new entrants, hitting the average workers while the rich looked into a more profitable method of saving for the future – buying houses for rent (investment).
This initiated the latest house price boom by artificially inflating prices leading to a situation whereby average house prices were significantly greater than the 3-4 times salary multiplier used by most banks, when applied to the average salary. This lead to banks lending higher multiples and the introduction of self certified mortgages where the loan applicant declared what they earned per year – note any conflict there? This was insufficiently regulated by the FSA.
It was noticable that at this time the UK economy was booming at a higher rate than the rest of europe, but Mr Brown took credit for this, not realising that the economy was being driven by people buying items with equity taken from their houses by remorgaging. This is assuming he really didn’t know what was going on – it’s not like the man running the finances of the country didn’t have a basic understanding of economics.
Anyway, effectively the banks were readily supplying money based on the confidence that house prices would keep going up. Obviously this couldn’t continue and at some point there had to be a readjustment, the impact of which we are seeing now. To know this all you would have to do is look at the Japanese economy and the impact of rising land prices there and their investment in US land based on a belief prices would always go up – after all they don’t make land anymore (except land reclaimation projects)…
The bank of england printing money for government, ie making more money available in the economy through public spending, is in effect replacing the banks giving out cash through reckless lending, only it will be paid back in the future in taxes. That said, bailing out the bank’s reckless lending will also have to be paid back in taxes. How the goverment spends the money is key. It should be spent on large scale infrastucture projects of transport, energy supply, telecoms and other projects that will give the country an advantage when the recovery begins.
Most likely it will be wasted supporting the failed PFI’s once the directors and sub-contractors have pocked the cash and the companies who have been set-up to run them go mysteriously bankrupt and the government has to step in.
Read the book and gain an understanding of supply and demand, and the impact of confidence on prices. Mines on order.Posted 9 years agoshoefitiMember
I think actually the AUS will weaken midterm to the GBP – probably reaching 2.30 – 2.40 range over the next few months. Personal view based on fundamentals. Hard to tell with the very high levels of volitity – if Browns plan to print more money was seen to affect the exchange rate it’d of dropped like a stone into London Fix on Friday – which it didn’t.Posted 9 years ago
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