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What Will You Do If The Sheeple Buy The Recovery Stuff

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if this happens im off. anywhere. im not living under brown paying monsterous taxes to pay for all the idiots in this country

The 'recovery' stuff at the moment is odd - it does seem to be showing signs of cracking. Eg, the BBC announces recovery stories with a fanfare of headlines, but then when you dig deeper the stories are heavily qualified and full of more fudge than a Cotswolds souvenir shop.

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if this happens im off. anywhere. im not living under brown paying monsterous taxes to pay for all the idiots in this country

you'll be paying monstrous taxes whoever gets in.

and we may even face property seizures to support the printing..

National trust is a very large landowner......just a thought.

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Guest DissipatedYouthIsValuable

The trouble with buying the recovery stuff is that you need money to do so.

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if this happens im off. anywhere. im not living under brown paying monsterous taxes to pay for all the idiots in this country

Come, come now comrade. That's not the attitude.

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You cannot beat the market. Brown's debt fuelled boom will have to be paid for one way or another. My bet is on deflation.

RB can I just ask. Those people in the Lords, were they completely powerless to stop his madness? If so, what are they for?

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Guest joeschmo
if this happens im off. anywhere. im not living under brown paying monsterous taxes to pay for all the idiots in this country

I was going to leave if the Tories won. Looks like I shall be staying in the UK !

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The trouble with buying the recovery stuff is that you need money to do so.

Borrow.

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I was going to leave if the Tories won. Looks like I shall be staying in the UK !

I admire your spunk. I mean that in the nicest possible American way. I wouldn't unpack yet if I were you.

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You cannot beat the market. Brown's debt fuelled boom will have to be paid for one way or another. My bet is on deflation.

:lol: Deflation increases real debt. Do you mean inflation? :lol:

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Why wouldn't people want to buy the recovery, who wants to be depressed thinking about debt?

People love positive news no matter how fantastical it is.

They have started the next G8 meeting ramping early. Don't they meet again in Sept?

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You cannot beat the market. Brown's debt fuelled boom will have to be paid for one way or another. My bet is on deflation.

I am with you on this and what people are mistaking for a recovery is in fact the necessary wealth destruction phase that accompanies the period of deflation we face.

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:lol: Deflation increases real debt. Do you mean inflation? :lol:

deflation defaults debt. thats why banks dont want it.

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if this happens im off. anywhere. im not living under brown paying monsterous taxes to pay for all the idiots in this country

Its not likely but if he does get in public spending will be cut and taxes will rise just the same - the mix will be different thats all

I guess I'd just wait for economics to take their course, but try and keep a lot of money out of sterling

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deflation defaults debt. thats why banks dont want it.

How does deflation default debt? (not trolling in the slightest, genuinely interested if I've missed something here).

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How does deflation default debt? (not trolling in the slightest, genuinely interested if I've missed something here).

as you say, it becomes more and more burdensome.

profligate, wasted lending is defaulted by borrowers that bust.

savers, who were prudent, are rewarded.

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I have to say, I now have real worries about another Labour general election win.

IMO, the facade of recovery will vanish a few hours after the polls close.

We aren't heading for TFH wearing global economic meltdown or hyperinflation, but I think we are heading for a long-haul recession (a.k.a. a depression). Something none of us have experienced in our lifetimes.

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How does deflation default debt? (not trolling in the slightest, genuinely interested if I've missed something here).

As a Bull I suppose we shouldn't be surprised you understand f*ck all.

Less money but the same debt means less money to pay off the debt.

Do a thought experiment. Imagine your £150K mortgage is £500 a month interest only, due for repayment in 5 years and your investments to pay it off are worth £100K today (already you are massivley better off then most with IO mortgages but we will let that pass). Now imagine that £100K falls by 2-3% a year, and so does your salary. What do you think happens to the probability of you being able to pay off the debt at the end compared to an inflationary enviroment?

(Clue, it's not higher) :rolleyes:

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How does deflation default debt? (not trolling in the slightest, genuinely interested if I've missed something here).

"Deflation destroys debt through defaults and bankruptcies, hyperinflation by debasement and loss of purchasing power.

Which fork in the road will the economy take? One thing is certain: the decision is no longer in the hands of the producers as it should be. It now rests with the financial sector – the bond market: the debt market. In paper fiat land we live and breathe and have our being in a world of debt.

History is replete with bouts of deflation and hyperinflation. One distinction that history shows, however, is that hyperinflation ends the life of a currency – it no longer is accepted as the medium of exchange. Although deflation is wrought with pain and suffering, defaults, bankruptcies, job losses, depressions, etc.; the currency is not destroyed. The slate of debt is wiped clean and the game begins anew. Deflation prolongs the life of the currency; hyperinflation destroys the currency. The first allows the game to continue. The second ends the game.

"

And BTW a part-time troll is still a troll

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Brown dosn't expect to get re-elected and this recovery will be short lived as it relies on constant propping up.

If he manages to get it to last until the next election, he will leave as the man who saved the economy then the tories messed it up.

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Is it possible to have deflation for certain items (things that are bought with credit) and perhaps inflation for food and things that are imported? Also if companies get desperate sometimes they think the answer is to cut prices. This might stimulate sales but does nothing in terms of their profits. Also once these shops need to restock they may find that the next cargo of goods costs more.

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Brown dosn't expect to get re-elected and this recovery will be short lived as it relies on constant propping up.

If he manages to get it to last until the next election, he will leave as the man who saved the economy then the tories messed it up.

You mean he's doing it to prop up his mortal remains for the history books?

I doubt it.

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