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House Price Crash Forum

Britain Faces The Worst Economic Situation


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HOLA445
Guest Parry aka GOD
ok didnt work with firefox

ok with iexplorer

What is that?

My connection (2G, 20 kbps awfulness) gives up now with Firefox, but, unfortunately for you lot, works fine with IE8.

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Not sure I understood his rational for a case where house prices have bottomed earlier in the clip, specifically when his bottom line is that the UK financial situation may be the worst of the OCDE. Hard to sustain both arguments together methinks.

Seems to me a clear case of "we will not say anything that may annoy voters" plus "the crisis is all labour's fault", in other words campaign talk.

Edited by Old_Traveller
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Not sure I understood his rational for a case where house prices have bottomed earlier in the clip, specifically when his bottom line is that the UK financial situation may be the worst of the OCDE. Hard to sustain both arguments together methinks.

Seems to me a clear case of "we will not say anything that may annoy voters" plus "the crisis is all labour's fault", in other words campaign talk.

the UK gov is desperately trying to prop up the property prices - for whatever stupid reason - while it hasn't bottomed it may look like this is the case for a while, that is until their policy fails and economic law resumes again (which it will)

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Guest Parry aka GOD
Basically the UK is fooked.

Did he say govt spending as a % of the economy was up by 13% or 30% couldn't make out what he was saying.

Anyone got the link yet to the OECD report in question?

Oh!

Well, it's fooked regards people driving round in silly motors or buying huge TV's, but I'm sure the good people of the UK will still eat, have clean water etc. Hopefully.

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Anyone got any links for what happen in 1940? Can't seem to find anything on it at the moment.

Churchill became PM after the guy before him had sort of screwed things up. The guy in the video doesn't think Cameron is the sort of chap we need to lead us out of national crisis.

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Guest Parry aka GOD
Anyone got any links for what happen in 1940? Can't seem to find anything on it at the moment.

Durin' the war . . .

(Remember Uncle Albert?)

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Churchill became PM after the guy before him had sort of screwed things up. The guy in the video doesn't think Cameron is the sort of chap we need to lead us out of national crisis.
Churchill was a fierce critic of Neville Chamberlain's appeasement of Adolf Hitler[130] and in a speech to the House of Commons, he bluntly and prophetically stated, "You were given the choice between war and dishonour. You chose dishonour, and you will have war."

But what fiscal problems did we have? Clearly the war was having an impact and was beginning to bankrupt us, undoubtedly we only remained solvent because the US was prepared to lend us the money.

How bad where the finances in 1940?

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http://www2.warwick.ac.uk/fac/soc/economic...finance1992.pdf

All agreed that, even if so augmented, tax revenues would never

suffice to cover expenditure requirements. Deficit finance would play

an irreducible role. Here the term of government borrowing had to be

kept as long as possible. To limit inflationary repercussions, firms and

households had to be kept illiquid by making available a wider than

usual variety of medium and long term government financial assets to

both small and institutional investors, to take the place of the real

resources and private debt which they would otherwise have sought to

acquire; at the same time nongovernment borrowers were to be largely

excluded from the market. Physical supply restrictions and the offer of

large quantities of government debt were therefore combined with

direct controls on private domestic borrowing, limiting new and bonus

issues on the stock market, bank advances, and so forth, in order to

limit liquidity in private hands. Exchange controls did the same for

restriction of purchasing power in foreign currency.

Like other prices, the rate of interest was also controlled. Since

demands for goods, for domestic lending and for foreign cash were all

controlled directly, the rate of interest had become redundant as a

regulator either of domestic demand or of the exchange rate. Instead,

interest rates were stabilized at a low level in order to cheapen deficit

finance. In The Economist’s phrase (20 January, 1940), this was a

“three per cent war.â€

Control of the money multiplier also played a part. Bond finance of

the deficit kept the issue of high-powered money to a minimum. At the

same time, firms and households were persuaded to hold as much

high-powered money as possible in bank deposits; meanwhile, the

commercial banks were both persuaded and constrained to create as

little credit with it as possible.

The results of the strategy were generally successful. During World

War II, government spending averaged 70% of GDP, and half of it was

financed out of general taxation. Of the cumulative deficit, only one

third was financed by short-term borrowing, and high-powered money

accounted for little more than 5% of overall deficit finance (Sayers

1956: 223). The cash stock no more than doubled; the aim of a “three

per cent war†was realized, and the costs of borrowing to the Treasury

were correspondingly low. Some inflation was successfully repressed

but, even without price controls, the price level would have been only

fractionally higher at the peak of the war effort (Friedman and

Schwartz 1982: 119).

However, the story would have been very different without Britain’s

ability to draw upon overseas assets and Allied credits. In fact,

domestic finance alone was insufficient, and in 1940-1 up to one third

of the budget deficit was financed by net imports (in later years the

proportion stabilized at one quarter).

While precise comparisons have not been attemp

So in fact we are in a far worse position as we now can't draw upon over seas assets and everyone else is running out of cash.

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Not sure I understood his rational for a case where house prices have bottomed earlier in the clip, specifically when his bottom line is that the UK financial situation may be the worst of the OCDE. Hard to sustain both arguments together methinks.

Seems to me a clear case of "we will not say anything that may annoy voters" plus "the crisis is all labour's fault", in other words campaign talk.

I couldn't get that bit either. He said we probably hadn't hit bottom but the worst of the falls are behind us.

Then went on to say whoever wins the general election will have the bigest financial mess to clean up ever.

Do all these economists think we are going to be able to operate in a low interest rate environment for the forseeable future?

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the UK gov is desperately trying to prop up the property prices - for whatever stupid reason - while it hasn't bottomed it may look like this is the case for a while, that is until their policy fails and economic law resumes again (which it will)

They don't understand the word 'affordable'.

They prefer to print money, because the fraudulent Fiat system knows no other way!

In a ponzi, the first ones in get rich, and the last ones in (much greater in number) get shafted.

The game is up... this is the end of the ponzi!

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Guest Parry aka GOD
They don't understand the word 'affordable'.

They prefer to print money, because the fraudulent Fiat system knows no other way!

In a ponzi, the first ones in get rich, and the last ones in (much greater in number) get shafted.

The game is up... this is the end of the ponzi!

. . . and not just the last 10 years of Ponzi. The post-war Ponzi is finished. Soros is right. End of the post-war super boom in the West.

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. . . and not just the last 10 years of Ponzi. The post-war Ponzi is finished. Soros is right. End of the post-war super boom in the West.

Don't like the guy that much... but I'd go with that!

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