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What are the consequences for a large cash deposit in the event of an IMF bailout for UK plc?

VMR.

Monday you go to bed with £10,000

Tuesday you wake up to find that it's been arbitarily devalued by x% (and your bank is shut til next monday)

See - argentina, russia etc

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What are the consequences for a large cash deposit in the event of an IMF bailout for UK plc?

VMR.

We are currently experiencing deflation.

If you can avoid losing your money by putting it in the right bank you will probably do well.

Some prices will rise especially those relating to imported goods but many more will fall as credit is destroyed.

Whether your purchasing power increases or decreases really depends on what you intend to buy.

If you are considering property your cash will do very well.

Your cash may do better in another currency but as all countries are deflating and many are IMF bailout candidates it's a lottery which one falls fastest.

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We are currently experiencing deflation.

If you can avoid losing your money by putting it in the right bank you will probably do well.

Some prices will rise especially those relating to imported goods but many more will fall as credit is destroyed.

Whether your purchasing power increases or decreases really depends on what you intend to buy.

If you are considering property your cash will do very well.

Your cash may do better in another currency but as all countries are deflating and many are IMF bailout candidates it's a lottery which one falls fastest.

Deflation?

Where?

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Deflation?

Where?

Everything screams deflation:

Record low interest rates

Bank failures

Declining property prices

Declining stockmarkets

Rising unemployment

Declining earnings

Rising bond prices

Declining trade

Collapsing money supply (credit)

Increasing base money supply (yes really)

Is there anything that even hints at inflation?

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Everything screams deflation:

Record low interest rates

Bank failures

Declining property prices

Declining stockmarkets

Rising unemployment

Declining earnings

Rising bond prices

Declining trade

Collapsing money supply (credit)

Increasing base money supply (yes really)

Is there anything that even hints at inflation?

Erm so inflation is deflation?

Alright then.

Carry on.

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Cost of living

Is this correct?

Personally the increases I have seen in fuel and food costs (to which I assume you are referring) have been more than offset by reductions in cost of housing i.e. my rent. I do accept that my position may be abnormal.

Could you please provide data demonstrating that the cost of living has increased, and please feel free to define cost of living.

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Erm so inflation is deflation?

Alright then.

Carry on.

The collapse in credit far outweighs the increase in base money supply so yes a net overall decrease in the money supply.

Both the USA in the 1930's and Japan in the 1990's had spikes in base money supply while suffering deflation.

Good - so we agree on deflaation then?

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The collapse in credit far outweighs the increase in base money supply so yes a net overall decrease in the money supply.

Both the USA in the 1930's and Japan in the 1990's had spikes in base money supply while suffering deflation.

Good - so we agree on deflaation then?

Credit isn't money, it's access to the value of money via fraudulent misrepresentation.

Credit twelve people with a pricey picasso (all in ignorance of the other) and the value of it remains the same.

Make 11 perfect copies of the original and you nuke it;s value.

Credit, she ain't money - and hyperinflationary depression is where we are off to.

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Credit isn't money, it's access to the value of money via fraudulent misrepresentation.

Credit twelve people with a pricey picasso (all in ignorance of the other) and the value of it remains the same.

Make 11 perfect copies of the original and you nuke it;s value.

Credit, she ain't money - and hyperinflationary depression is where we are off to.

Back in the real world we are on the cusp of the biggest deflationary spiral the world has ever seen.

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Erm so inflation is deflation?

Alright then.

Carry on.

It's all about hanging onto your wealth at the moment rather then creating more.

That to me shows deflation.

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Back in the real world we are on the cusp of the biggest deflationary spiral the world has ever seen.

we're getting off-topic, but I hope you are right. I fear that UK printing money will cause inflation, as paper currency loses value. I hope to $%% not, though.

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What are the consequences for a large cash deposit in the event of an IMF bailout for UK plc?

VMR.

Your cash will still be in the bank.

1) As a pre-requisite of the IMF bailing out the UK they will insist on higher interest rates and drastic cuts in public spending.

2) Imported goods will become more expensive depending on how much the £ drops against other currencies.

3) As a consequence of 1) unemployment will increase dramatically as lots of businesses will fail being unable to service their debts

Also as a consequence 1) & then 3) there will be a quick short lived surge to buy property by those with cash who panic about inflation. However as people with variable mortgages will be unable to pay them at the new interest rates repossessions will surge and mortgage lending will vanish, so house prices will drop at least 5% a month for the next 6 months.

If you hold a substantial amount of cash and leave it all as cash you may have to pay the top rate of income tax.

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Everything screams deflation:

Record low interest rates

Bank failures

Declining property prices

Declining stockmarkets

Rising unemployment

Declining earnings

Rising bond prices

Declining trade

Collapsing money supply (credit)

Increasing base money supply (yes really)

Is there anything that even hints at inflation?

You left out all the stuff that people buy.

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Back in the real world we are on the cusp of the biggest deflationary spiral the world has ever seen.

No, we are about to see the largest credit collapse the world has ever seen.

And the sky high inflation at the same time.

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Your cash will still be in the bank.

1) As a pre-requisite of the IMF bailing out the UK they will insist on higher interest rates and drastic cuts in public spending.

2) Imported goods will become more expensive depending on how much the £ drops against other currencies.

3) As a consequence of 1) unemployment will increase dramatically as lots of businesses will fail being unable to service their debts

Also as a consequence 1) & then 3) there will be a quick short lived surge to buy property by those with cash who panic about inflation. However as people with variable mortgages will be unable to pay them at the new interest rates repossessions will surge and mortgage lending will vanish, so house prices will drop at least 5% a month for the next 6 months.

If you hold a substantial amount of cash and leave it all as cash you may have to pay the top rate of income tax.

I think that is the correct answer althought the monthly drop estimate may be a bit excessive.

A-

I'm thinking an IMF bailout is a good thing for HPC'rs.

VMR.

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Credit isn't money, it's access to the value of money via fraudulent misrepresentation.

Credit twelve people with a pricey picasso (all in ignorance of the other) and the value of it remains the same.

Make 11 perfect copies of the original and you nuke it;s value.

Credit, she ain't money - and hyperinflationary depression is where we are off to.

Well unfortunately credit is money.

I agree that it is a fraudulent misrepresentation of money and that the banksters are stealing from the people but once that credit hits your bank account it is indistinguishable from 'real' money.

Credit has gone crazy over many years and has resulted in the mess we find ourselves in.

Credit is now rapidly being destroyed and not even the seemly large increases in base money supply can counter it.

We could get inflation if the government prints & prints and gives it away but they wont.

You may think otherwise so we'll just have to agree to differ.

Until next time...

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>Back in the real world we are on the cusp of the biggest deflationary spiral the world has ever seen.

>No, we are about to see the largest credit collapse the world has ever seen.

>And the sky high inflation at the same time.

I think you are both right but using different versions of Xflation.

If (money supply), Injin is doubly right.

If (money supply + credit), Willy is also right.

VMR.

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Well unfortunately credit is money.

I agree that it is a fraudulent misrepresentation of money and that the banksters are stealing from the people but once that credit hits your bank account it is indistinguishable from 'real' money.

The passing of notes and coins around isn't fooled in the way that people are when they look at numbers or whatever, so the value of something is always supply/demand based. Dreaming of gold mines doesn't change the price of gold, except for yourself. If your dream is really real to you, you might plan a future based on the value of your soon to arrive gold mine, at the value of gold when you dreamt it.

Because this was just a dream, all your calculations are awry so even if some magic pixie creates you a brand new gold mine, because doing that will actually increase the actual amount of gold, altering the actual value of it.

Credit has gone crazy over many years and has resulted in the mess we find ourselves in.

Credit is now rapidly being destroyed and not even the seemly large increases in base money supply can counter it.

We could get inflation if the government prints & prints and gives it away but they wont.

You may think otherwise so we'll just have to agree to differ.

Until next time...

They don;t have to print and print, if money supply had remained stable and all the credit vanished, we'd have had a depression as everyone woke up to the realty of how much money there really was about. Because they have printed, we'll have high inflation leading to hyperinflation AND a depression.

it's already happened, now we are sitting here waiting for it to transpire.

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The cost of living and inflation are not the same thing. Inflation is an increase in the supply of money. We are in the middle of a massive decrease in the money supply.

Decrease? I thought they were pumping more in. Just because bankers haven't got enough to lend out doesn't mean that it isn't in the system sloshing around.

Our retarded government aren't lucky enough to get deflation. Inflation will rear it's ugly head, interest rates will go up, and stage two of the crash can begin!

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Nothing much business input costs are going down. Customers will only be experiencing significantly increasing prices in the shops. All zero interest rates are doing for businesses is keeping rents unnecessarily high.

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