Tuesday, Jan 13, 2009
The Final Solution
MSN: Is printing money the solution to our problems?
What can you do when interest rates hit 0%? The answer, which the government is apparently considering, and the US Federal Reserve is already doing, is quantitative easing. Or, more simply, printing money.
Printing money safely - if there is such a thing - requires a government that you can trust to act responsibly with the nation's finances. Judging by the way that both Barack Obama and possibly Gordon Brown are embracing the notion that you can spend your way out of recession, there's little chance of that.
Posted by sold out @ 10:13 PM (477 views) Add Comment
10 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. flintster1994 said...
Negative growth?
Credit "chocolate cereal bar" crunch?
Quantative easing?
If it wasn't so serious, it would be hillarious!
Can't wait to hear the next buzz words.
Freedom is slavery?
Sorry folks, I may be approaching the end of my tether.
That said, I just watched the south park episode where Obama became president. I may be able to keep it together for a bit longer.
2. Chris said...
Hyperinflation! If the government is in massive debt and the value of the pound reduces and everything else goes up in price technically, doesn't this make it cheaper for the government to repay it's debts later?
3. paul said...
"It's telling that the main advocates of quantitative easing ... are those who believe there was nothing wrong with the path we've been following for the past decade or more."
Well that's the nub of the problem isn't it?
Estate agents, retail banks, chronic debt apologists, politicians keen to regain tax pounds, prime ministers keen to regain favour, bank officials keen to regain a quiet life, even column writers keen to regain property advertising wealth want to get back to their version of "normality" we've had for the past ten years.
I hold even less faith in them not cocking it up yet again. Like Soros said recently, there's still far too much self interest being showboated as common good for a solution to be imminent.
4. flintster1994 said...
Paul,
Do you hold the oppinion that this mess is purely down to incompetence?
5. mark wadsworth said...
No.
6. davecrash said...
I put it down to greed, globalisation, incompetent management (the old boy network), corruption, profits at any cost and not putting any profits away for a rainy day.
As we all know the banks in particular have been making billions and billions for years and years until recently and now they are all cap in hand to the government, it's incredible really. They should have been able to scale back there operation a bit and survive for years on their reserves, what a pack of muppets. Actually our government are the real muppets wasting out money bailing them out.
7. flintster1994 said...
Davecrash,
So basically you do put this whole sorry fiasco down to incompetence?
8. davecrash said...
yes and muppets
9. amjidk said...
whats your opinion, Mark??
10. stillthinking said...
Unless quantative easing is accompanied by tax cuts, it is essentially an expansion of government. Personally, I agree with qe to fund tax cuts, accompanied by government statements (from somebody believable, ok, somebody new) about withdrawing the liquidity later.
I don't agree with any expansion of the state sector. The mainstream media are really letting the side down because they should be shouting from the rooftops "socialist Britain", which is where we are, not where we are heading anymore. And we all know what happens to socialist countries per capita GDP...