Jazemack

These are the most extreme examples granted. But it's the thin end of the wedge, that's for sure. Prices will be going down. A cheery fact for you, mortgage lending has fallen 97.5% since the peak in 2007, £116Bn net lending per annum to sub-£3Bn this year. The crash is coming, one way or another.

Probably true, does seem rather 'off message'.

Going back to the volaflation thing, you say you think it will ultimately end in deflation, so cash ends up being king, right? Does that mean you think cash will ultimately end up being stronger than it is today? So a stronger pound will be the ultimate outcome in your opinion, is that right? How does that square with the currency devaluation issues from debt default you were mentioning earlier?

Check out the 854-dayer, fourth one down, FOOLS!

OK, get the picture. I'd be interested to hear the reasons behind them getting it handed to them, but perhaps that's better left to another time and place if there's a vortex threat, not sure what will happen but sounds worrying?!

Messed up the link, here it is: Aldbury HPC

Here you go, I searched on an Aldbury postcode:

I think I see. So your saying we could get rapid devaluation, but then some other factor comes into play and suddenly the pound looks a better bet, I suppose like Iceland getting back on its feet a bit a couple of years after their collapse. Basically you think it's one big minefield and nowhere is definitely safe in your opinion? So cash is as a good a place as any you think? I suppose if there's a default and house prices collapse it might be, even if the currency has been devalued, although it might not be so good if you want to buy imported organic fruits grown on the other side of the world! Does the voflation view apply to gold too in your opinion, do you see that as no more safe than cash in this scenario?

So in isolation, even with the FSCS guarantee, savers would lose purchasing power is what your are saying? However, what would happen if this wasn't isolated? After all, it's a global debt crisis and the Euro and Dollar have similar issues. So wouldn't everything balance out more or less, as everyone will be devaluing? Or will it just mean that the exchange rates may end up not too far from where they are now, but a loaf of bread will cost £10, 12 Euros or $16 in the respective countries, due to currency devaluation against all real world goods and services (not just other currencies), so everyone in cash still loses value?

So there's less money from credit destruction, but we're saying that would also lead to devaluation of the currency? So would the shrinking of credit be counterbalanced by devaluation so it was actually a zero sum game? Would those that got an FSCS bailout actually be in the black or in the red do you think?

Well if some sort of collapse or jubilee happens then it's probably going to be too late for those people, certainly as far as buying a house is concerned, as there won't be any banks able or willing to lend the money. So at least that means prices should come down! 4 banks or more is prudent if you have cash, but I guess doesn't insulate you from an overall collapse if the currency devalues. Gold and shares? I guess you pays your money and takes your choice, but by the sound of it, it's the same scenario with cash in the bank!

Oh I see, it's more to do with direct currency devaluation that would occur as a result of bank collapse and I guess the economic problems that would bring. Mind you if it's a global bank collapse, where banks are collapsing everywhere, it wouldn't be so bad would it? Surely if the US and Euro economies are suffering the same problem, the chips won;t land too far from where they were as far as exchange rates are concerned?

So you think the FSCS pledge would have to be serviced by money printing, which I agree is ultimately inflationary, but with reference to the hamburger example, does anyone know exactly how inflationary printing up an equivalent amount to all savings in the UK and handing the money out would be? In terms of absolute expansion of the money supply at least?

So by full reset do we mean letting the chips fall, no more bailout etc. and therefore letting some banks fail? Which means savings might not be safe? But then surely they'll be protected by the FSCS and savers will get their money back anyway?

Sorry, meant to say I think somebody, not someday, called Black September.