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Garf

Uk-Style Austerity Trap

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The chanting may be louder and the protests more violent but like Greece, the UK is suffering through its own austerity program...

http://forexblog.oanda.com/20110708/uk-style-austerity-trap/

Sums up the current situation and the outlook for the UK quite well IMO.

The UK can implement austerity better than Europe.

-Longest bond maturity than many, meaning we are not rolling as much debt over the short term.

-Stoical public (well the majority) who understand the problems that Labour created and are more likely to take the tough medicine that is required.

- Ability to inflate the debt away at 4-5% negative rates per annum.

Things could change this as there is 'no future' only 'futures' and depending on what happens politically then we could be in for carnage (ie if Labour were to get back in).

Nonetheless, as Jeremy Grantham says we are in for 7 lean years in the West, not necessarily bankruptcy. The measure we take now will determine the outcome.

We have made the right moves so far as a nation. Time will tell.

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We have made the right moves so far as a nation.

Really?? What moves are those? :blink:

Rampant inflation, £4 trillion of debt (increasing daily), basically no cuts (despite what they keep on saying), cutting our own throats by engaging in numerous wars, supporting the bankers with their large bonuses etc etc.

Edited by Errol

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One thing the government must do is find a mechanism for workers pay to increase. If we go down the road of pay cuts we will be totally f****d. With weak unions and a powerful corporate sector that hold all the money pay rises may be very hard to come by.

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'The right moves so far as a nation' with regards to transferring vast chunks of their wealth to a lucky few like me. :lol: Suckers.

But seriously. Damned if they do, damned if they don't. The nature of this crisis - huge public and private debts brought on my pushing a credit bubble and bubble economy to incredible heights - means that neither austerity or growth will work. The former just increases the rate of economic decline and growth is impossible if former growth was built on a credit bubble that popped and hasn't been allowed to deflate thanks to more trying to solver debt with more debt (bailouts, QE and ZIRP).

All roads lead to default, one way or another. We've been following this path for a long time, as you can see, we are now in the terminal stages:

34xknpk.jpg

Edited by General Congreve

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The UK can implement austerity better than Europe.

-Longest bond maturity than many, meaning we are not rolling as much debt over the short term.

-Stoical public (well the majority) who understand the problems that Labour created and are more likely to take the tough medicine that is required.

- Ability to inflate the debt away at 4-5% negative rates per annum.

Things could change this as there is 'no future' only 'futures' and depending on what happens politically then we could be in for carnage (ie if Labour were to get back in).

Nonetheless, as Jeremy Grantham says we are in for 7 lean years in the West, not necessarily bankruptcy. The measure we take now will determine the outcome.

We have made the right moves so far as a nation. Time will tell.

rolling debt isnt the problem.

compounding the debt IS.

Im waiting for the Government blog from Onan

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The UK can implement austerity better than Europe.

-Longest bond maturity than many, meaning we are not rolling as much debt over the short term.

-Stoical public (well the majority) who understand the problems that Labour created and are more likely to take the tough medicine that is required.

- Ability to inflate the debt away at 4-5% negative rates per annum.

Things could change this as there is 'no future' only 'futures' and depending on what happens politically then we could be in for carnage (ie if Labour were to get back in).

Nonetheless, as Jeremy Grantham says we are in for 7 lean years in the West, not necessarily bankruptcy. The measure we take now will determine the outcome.

We have made the right moves so far as a nation. Time will tell.

Rubbish.

The fundamental policies were not created by labour but by the corporatist/financial elites, all political parties have spent the past 3 decades gradually implementing them in return for cash, campaign contributions, and jobs after leaving office.

You can't inflate away debt unless there are wage increases to match the inflation in costs - something we are not seeing. Higher food/fuel/neccesities costs while wages stagnate mean that the debts the uk populace hold are becoming harder to service not easier.

It doesnt matter a damn whether labour or conservatives are in power. They both serve the same corporatist/bankster masters. The only difference is the face they present to the public.

The general public face a few tough years before the ponzi collapses. We would face decades of stagnation as whatever wealth we have left is stipped from us and funneled to the elites, but our debt based mass consumption mass production economies make that impossible. Nonetheless the elites are still attempting it. Hence the ensuing ponzi collapse.

The 'nation' has made no moves whatsoever. The elites have made moves - moves to preserve their wealth and status for a few more years by kicking the can down the road. But we are almost of out can kicking room.

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I'm surprised they haven't reduced the tax on petrol significantly which would help people cope with the rampant inflation in food etc while printing more to compensate their coffers. simplistic thinking I know and I'd rather they had upped interest rates instead of slashing them. grrrr.

Edited by ader

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I'm surprised they haven't reduced the tax on petrol significantly which would help people cope with the rampant inflation in food etc while printing more to compensate their coffers. simplistic thinking I know and I'd rather they had upped interest rates instead of slashing them. grrrr.

Printing solves nothing.

All the new money created is being captured by the elites. Viewed from the average prole perspective you see it as inflation in food/fuel/necessities costs, while wages stagnate. Because of the current disproportionate economic power of the elite vs the prole this won't change, and any further printing will simply allow the elites to ass-shaft you harder.

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Rubbish.

The fundamental policies were not created by labour but by the corporatist/financial elites, all political parties have spent the past 3 decades gradually implementing them in return for cash, campaign contributions, and jobs after leaving office.

You can't inflate away debt unless there are wage increases to match the inflation in costs - something we are not seeing. Higher food/fuel/neccesities costs while wages stagnate mean that the debts the uk populace hold are becoming harder to service not easier.

It doesnt matter a damn whether labour or conservatives are in power. They both serve the same corporatist/bankster masters. The only difference is the face they present to the public.

The general public face a few tough years before the ponzi collapses. We would face decades of stagnation as whatever wealth we have left is stipped from us and funneled to the elites, but our debt based mass consumption mass production economies make that impossible. Nonetheless the elites are still attempting it. Hence the ensuing ponzi collapse.

The 'nation' has made no moves whatsoever. The elites have made moves - moves to preserve their wealth and status for a few more years by kicking the can down the road. But we are almost of out can kicking room.

+1

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Rubbish.

The fundamental policies were not created by labour but by the corporatist/financial elites, all political parties have spent the past 3 decades gradually implementing them in return for cash, campaign contributions, and jobs after leaving office.

You can't inflate away debt unless there are wage increases to match the inflation in costs - something we are not seeing. Higher food/fuel/neccesities costs while wages stagnate mean that the debts the uk populace hold are becoming harder to service not easier.

It doesnt matter a damn whether labour or conservatives are in power. They both serve the same corporatist/bankster masters. The only difference is the face they present to the public.

The general public face a few tough years before the ponzi collapses. We would face decades of stagnation as whatever wealth we have left is stipped from us and funneled to the elites, but our debt based mass consumption mass production economies make that impossible. Nonetheless the elites are still attempting it. Hence the ensuing ponzi collapse.

The 'nation' has made no moves whatsoever. The elites have made moves - moves to preserve their wealth and status for a few more years by kicking the can down the road. But we are almost of out can kicking room.

Good post.

It seems that all we can do is as little as possible.....and wait until the strain on hard workers becomes unbearable?

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I'm surprised they haven't reduced the tax on petrol significantly which would help people cope with the rampant inflation in food etc while printing more to compensate their coffers. simplistic thinking I know and I'd rather they had upped interest rates instead of slashing them. grrrr.

Petrol is high because they printed (and the tax take)

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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