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crash2006

British Economic Collapse Rivals Great Depression

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http://www.telegraph.co.uk/finance/finance...Depression.html

Economic output shrank by 5.6pc in the 12 months to the middle of the year, according to official figures which shattered hopes that the recovery has already begun.

The Office for National Statistics said that Britain's gross domestic product (GDP) contracted by 0.8pc in the second quarter, following the unprecedented 2.4pc fall in the first three months of the year. Economists had expected GDP – the broadest measure of the country's economic performance – to shrink by 0.3pc.

click on my picture sig to find out why.

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Crash, do you think "They" try a "Wilson" type devaluation or a "Caliham" type run to the IMF?

Mike

The problem with devaluation of a currency it'll lead to inflation, the problem with this is its a global event and if others do the same we are in the same boat, borrowing money from the IMF leads to long term problems. So the problem is a bit more complex because there are various nations in trouble, can the IMF help lots of nations no it can't. i dont think they'll devalue this is a banking problem and would hit banks harder.

Edited by crash2006

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If you take September 2008 as the financial panic, and compare it to October 1929.. the countries I've looked at are basically right on track in terms of contraction in gdp, unemployment and reduction in trade.

This is about July 1930.. the depth of the great depression didn't come until 1932/1933.

Honestly its why I have been suggesting such radical measures, to avoid a repeat.. but it looks like we are going down the same road.

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Except that its not like the great depression because people don't have to move counties in search of work and worry about whether they will have food for their kids or a roof over their head - or not more than usual, and not because of this depression.

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If you take September 2008 as the financial panic, and compare it to October 1929.. the countries I've looked at are basically right on track in terms of contraction in gdp, unemployment and reduction in trade.

This is about July 1930.. the depth of the great depression didn't come until 1932/1933.

Honestly its why I have been suggesting such radical measures, to avoid a repeat.. but it looks like we are going down the same road.

sadly, your radical measures are nothing of the sort.

they are the resort of politicians seeking re-election...nothing more.

i mean, why prevent a natural correction? its like handing a starving man a plate of soup, then abandoning him.

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Except that it is nowhere near as bad as the 90's recession yet, never mind the 80's. The graphs might match the 30's but the social implications are still a galaxy away.

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Except that it is nowhere near as bad as the 90's recession yet, never mind the 80's. The graphs might match the 30's but the social implications are still a galaxy away.

Thats still to come!

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sadly, your radical measures are nothing of the sort.

they are the resort of politicians seeking re-election...nothing more.

i mean, why prevent a natural correction? its like handing a starving man a plate of soup, then abandoning him.

But short termism is what makes the world go round, why make good long term decisions when you can have a quick fix now?

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Except that it is nowhere near as bad as the 90's recession yet, never mind the 80's. The graphs might match the 30's but the social implications are still a galaxy away.

Oh dear, you mean they've successfully swept that much badness under the carpet?

It's more like the mid-1970s: things are getting ever worse, but held together with sticking-plaster.

No, wait, it's worse: they're printing all that money to patch the carpet. 1000 times more damage than Hitler could do when he tried the same thing on us.

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Except that it is nowhere near as bad as the 90's recession yet, never mind the 80's. The graphs might match the 30's but the social implications are still a galaxy away.

That's true, but in relative terms it is still as bad. Losing half your wealth when all you have is bread and butter (as per the 30s) can be fatal. Losing half now means the foreign holidays stop, the car is sold and the iPhone has to wait.

We won't lose the technological advances of the last 80 years (medicine, internet etc) but we will only be able to afford 25-50% of what we had of them in 2007.

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Crash, do you think "They" try a "Wilson" type devaluation or a "Caliham" type run to the IMF?

Mike

'From now the pound abroad is worth 94% or so less in terms of other currencies. It does not mean, of course, that the pound here in Britain, in your pocket or purse or in your bank, has been devalued.

"What it does mean is that the g*ld in your strongbox was a good idea after all.'

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That's true, but in relative terms it is still as bad. Losing half your wealth when all you have is bread and butter (as per the 30s) can be fatal. Losing half now means the foreign holidays stop, the car is sold and the iPhone has to wait.

We won't lose the technological advances of the last 80 years (medicine, internet etc) but we will only be able to afford 25-50% of what we had of them in 2007.

Losing half your wealth AND your job means a lot mare than postponing an iphone purchase. Just hoping the trickle down effect of the wealth from Sir Fred's pension and Andy Hornbt's new job at Boots will run to a few cans of baked beans. (own brands of course).

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That's true, but in relative terms it is still as bad. Losing half your wealth when all you have is bread and butter (as per the 30s) can be fatal. Losing half now means the foreign holidays stop, the car is sold and the iPhone has to wait.

We won't lose the technological advances of the last 80 years (medicine, internet etc) but we will only be able to afford 25-50% of what we had of them in 2007.

im 24 , but not really into tech gadgetry so much

most of it has not improved our lives

ask the guy who got machines to do everything for him , whilst he sat in an office job drinking soda

now he weighs 300 pounds , has diabetes and wipes his **** with a rag on a stick

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That's true, but in relative terms it is still as bad. Losing half your wealth when all you have is bread and butter (as per the 30s) can be fatal. Losing half now means the foreign holidays stop, the car is sold and the iPhone has to wait.

We won't lose the technological advances of the last 80 years (medicine, internet etc) but we will only be able to afford 25-50% of what we had of them in 2007.

I'm sorry. I can't work out whether you are taking the p!ss or whether you have just never been really fecking poor?

25-50% of massive consumption is a full belly and a roof over your head, if not by any other means then through the Council and it would hurt to loose the car but you probably won't lose it because there will be so many cars to be repo'd that all you will need to do is park it around the corner and the repo man will be off to the next job before checking too madly, and quite frankly a full belly and a roof over your head, and beating the repo man are the most important things to your survival. IPods are irrelevant to your relative chances of surviving. Or am I being completly obtuse?

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