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I Wrote To My Mp And Received A Reply From Mark Hoban

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Hi all.

I wrote to my MP, and I received a reply from Mark Hoban, of HM Treasury.

I thought you may be interested to see the warped logic they practice.

It's all to do with interest rates/ savings and house prices.

At least I feel I'm doing something. I wonder how many others take the opportunity to make contact with Government officials?

The first letter below is from Mark Hoban. The second letter below is my reply.

LETTER ONE

The interest rates offered on savings accounts are a commercial decision for providers. A number of banks and other institutions continue to offer savings interest rates significantly above the Bank of England bank rate, and savers can ensure they get the best possible income from their savings by shopping around. The Money Advice Service publishes comparative tables of savings accounts and the interest rates offered. These tables can be found at www.moneyadviceservice.org.uk or by calling the Money Advice Service helpline on 0300 500 5000.

Mr P also raises his concern that housing is difficult to afford. The Government recognises the importance of the housing market, and of a need for a sustainable mortgage market to support a stable housing market.

The current low level of mortgage lending in part reflect a fall in demand, due to economic uncertainty. It also reflects a fall in supply, as banks take a more cautious approach to lending in light of the mistakes made in the run-up to the crisis. The Government is determined that creditworthy borrowers looking to buy a home or move should have access to affordable mortgages.

The Government's tough action on the deficit will help keep market interest rates low. Failure to act could lead to rising costs for borrowers. The Government is also working with the FSA, the Bank of England and international authorities to maintain stability in the financial system. This will ensure banks and building societies have access to the funds they need to lend.

In addition, Budget 2011 also included a number of measures to encourage the housing market and to assist first time buyers. In particular, the Government announced it was investing £250 million, alongside house-builders, in a new FirstBuy scheme that will offer 20 per cent equity loans to first-time buyers purchasing new-build homes. Further details are available at http://www.homebuy.co.uk/.

Please pass on my thanks to Mr P for taking the trouble to make us aware of his concerns.

Mark Hoban.

LETTER TWO

Dear Mr Hoban.

I received a letter from you today passed onto me by my MP Mr George (he always takes the trouble to reply. I'm very grateful).

Many thanks for taking the trouble to reply.

May I take the opportunity to reply to yourself.

1) You state that savings interest rates are above the bank rate, as though this was a satisfactory answer. You seem to have failed to realise that inflation is double the savings rate, therefore life savings are reducing in value.

2) You seem to think that the problem with the housing market is lack of funding. May I remind you that it was the ease of obtaining credit that caused the credit crunch? House prices are still close to the levels where if sales volume returned to normal, we would have credit crunch Mk2. Therefore, house prices have to fall to get back to a satisfactory situation. In addition, because of the mismanaged economy, the banks and building societies have nowhere near enough funds to support these high prices.

Your stupid ideas of using public funds to support overpriced houses are immoral. You should allow free economic forces to prevail.

You mention the problem is that banks need more money to lend. So that's it then, we sustain our economy using debt. How about encouraging saving for once? If we had in the past, we wouldn't be in this mess now.

Please note

2a) House prices rose 300% in a ten year period where wage inflation was 30%. There were no economic pressures to create this asset bubble.

2b) No one will invest in England, as housing costs to house the workforce are too high and high wages would be required.

2c) A young couple cannot afford to buy a house. They will put off or delay having a family so we end up with an unhealthy age ratio.

2d) The same young couple would have less disposable income for the general good of the economy.

2e) A house priced at say 200,000 pounds can be built for about 70,000.

2f) When interest rates were 5.5%, house prices fell by 25% in 18 months. Interest rates will have to return to normal at some stage. This will leave anyone thinking of buying in severe negative equity in the future.

2g) What you propose is just helping the banks and creating a society of debt slaves. This country is now the most indebted for private debt. This is very unhealthy for the future.

2h) Low interest rates mean a low value pound. We import more than we export. Therefore, simple logic would dictate we need a stronger pound. The problems a weak currency cause are now being noticed in high food and fuel costs. It was said that a weak currency indicated a weak government.

2i) SMEs are not borrowing and banks are not lending. I was lead to believe that was the main reason for low interest rates, but with a low flow of capital, low rates are not required.

2j) We do not get a generous expenses system to support our housing. I don't think you MPs live in a real world.

3) You talk about 'The Government's tough action'. What tough action? We are still borrowing something like 8 billion pounds a month. Our debts are just getting higher all the time. You are achieving nothing. The borrowing hasn't reduced since you have been in power.

4) You say regarding interest rates, Failure to act could lead to rising costs for borrowers. So it's stuff the sensible saver, and encourage debt? Do you realise those in deep debt number something like 1 to 2 million, as opposed to something like 10 million savers? This fact may reflect at the next general election.

I'm surprised at your answers. They are what I would expect from Labour who doesn’t practise logic. I was expecting logical government that I would expect from the Conservatives, not more of this warped socialist nonsense.

Your government is letting down the decent, self disciplined folk of the nation. You are just supporting the bankers’ high wages and bonuses, and the grossly indebted (due mostly to fraudulent lending, incidentally). Do you really want a country that cannot move forward?

In conclusion, we need higher interest rates to control inflation (I'm talking 5% not 0.75%), give the prudent a decent return and drive house prices back to where they should be and then we can get on with our lives.

Yours sincerely,

P.

xxxxxxxxxx Cottage (rented, I can’t afford a house)

Address supplied

Edited by LetsGetReadyToTumble

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Hi all.

I wrote to my MP, and I received a reply from Mark Hoban, of HM Treasury.

I thought you may be interested to see the warped logic they practice.

It's all to do with interest rates/ savings and house prices.

At least I feel I'm doing something. I wonder how many others take the opportunity to make contact with Government officials?

The first letter below is from Mark Hoban. The second letter below is my reply.

LETTER ONE

The interest rates offered on savings accounts are a commercial decision for providers. A number of banks and other institutions continue to offer savings interest rates significantly above the Bank of England bank rate, and savers can ensure they get the best possible income from their savings by shopping around. The Money Advice Service publishes comparative tables of savings accounts and the interest rates offered. These tables can be found at www.moneyadviceservice.org.uk or by calling the Money Advice Service helpline on 0300 500 5000.

Mr P also raises his concern that housing is difficult to afford. The Government recognises the importance of the housing market, and of a need for a sustainable mortgage market to support a stable housing market.

The current low level of mortgage lending in part reflect a fall in demand, due to economic uncertainty. It also reflects a fall in supply, as banks take a more cautious approach to lending in light of the mistakes made in the run-up to the crisis. The Government is determined that creditworthy borrowers looking to buy a home or move should have access to affordable mortgages.

The Government's tough action on the deficit will help keep market interest rates low. Failure to act could lead to rising costs for borrowers. The Government is also working with the FSA, the Bank of England and international authorities to maintain stability in the financial system. This will ensure banks and building societies have access to the funds they need to lend.

In addition, Budget 2011 also included a number of measures to encourage the housing market and to assist first time buyers. In particular, the Government announced it was investing £250 million, alongside house-builders, in a new FirstBuy scheme that will offer 20 per cent equity loans to first-time buyers purchasing new-build homes. Further details are available at http://www.homebuy.co.uk/.

Please pass on my thanks to Mr P for taking the trouble to make us aware of his concerns.

Mark Hoban.

LETTER TWO

Dear Mr Hoban.

I received a letter from you today passed onto me by my MP Mr George (he always takes the trouble to reply. I'm very grateful).

Many thanks for taking the trouble to reply.

May I take the opportunity to reply to yourself.

1) You state that savings interest rates are above the bank rate, as though this was a satisfactory answer. You seem to have failed to realise that inflation is double the savings rate, therefore life savings are reducing in value.

2) You seem to think that the problem with the housing market is lack of funding. May I remind you that it was the ease of obtaining credit that caused the credit crunch? House prices are still close to the levels where if sales volume returned to normal, we would have credit crunch Mk2. Therefore, house prices have to fall to get back to a satisfactory situation. In addition, because of the mismanaged economy, the banks and building societies have nowhere near enough funds to support these high prices.

Your stupid ideas of using public funds to support overpriced houses are immoral. You should allow free economic forces to prevail.

You mention the problem is that banks need more money to lend. So that's it then, we sustain ore economy using debt. How about encouraging saving for once? If we had in the past, we wouldn't be in this mess now.

Please note

2a) House prices rose 300% in a ten year period where wage inflation was 30%. There were no economic pressures to create this asset bubble.

2b) No one will invest in England, as housing costs to house the workforce are too high and high wages would be required.

2c) A young couple cannot afford to buy a house. They will put off or delay having a family so we end up with an unhealthy age ratio.

2d) The same young couple would have less disposable income for the general good of the economy.

2e) A house priced at say 200,000 pounds can be built for about 70,000.

2f) When interest rates were 5.5%, house prices fell by 25% in 18 months. Interest rates will have to return to normal at some stage. This will leave anyone thinking of buying in severe negative equity in the future.

2g) What you propose is just helping the banks and creating a society of debt slaves. This country is now the most indebted for private debt. This is very unhealthy for the future.

2h) Low interest rates mean a low value pound. We import more than we export. Therefore, simple logic would dictate we need a stronger pound. The problems a weak currency cause are now being noticed in high food and fuel costs. It was said that a weak currency indicated a weak government.

2i) SMEs are not borrowing and banks are not lending. I was lead to believe that was the main reason for low interest rates, but with a low flow of capital, low rates are not required.

2j) We do not get a generous expenses system to support our housing. I don't think you MPs live in a real world.

3) You talk about 'The Government's tough action'. What tough action? We are still borrowing something like 8 billion pounds a month. Our debts are just getting higher all the time. You are achieving nothing. The borrowing hasn't reduced since you have been in power.

4) You say regarding interest rates, Failure to act could lead to rising costs for borrowers. So it's stuff the sensible saver, and encourage debt? Do you realise those in deep debt number something like 1 to 2 million, as opposed to something like 10 million savers? This fact may reflect at the next general election.

I'm surprised at your answers. They are what I would expect from Labour who doesn’t practise logic. I was expecting logical government that I would expect from the Conservatives, not more of this warped socialist nonsense.

Your government is letting down the decent, self disciplined folk of the nation. You are just supporting the bankers’ high wages and bonuses, and the grossly indebted (due mostly to fraudulent lending, incidentally). Do you really want a country that cannot move forward?

In conclusion, we need higher interest rates to control inflation (I'm talking 5% not 0.75%), give the prudent a decent return and drive house prices back to where they should be and then we can get on with our lives.

Yours sincerely,

P.

xxxxxxxxxx Cottage (rented, I can’t afford a house)

Address supplied

Good reply. Don't hold your breath for a thought-through answer though

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I applaud your decision to act...

Personally, I don't bother writing to MPs - I feel it most likely to re-enforce their sense of self-important arrogance. I'd always anticipate that political movers would see my communication as an opportunity to use sophistry to avoid the real issue and push a different agenda all together.

I'm still trying to establish action I'd consider appropriate... Your objective seems right (i.e. raise interest rates - and raise them now) but I'm certain that merely voicing democratic concern will prove utterly ineffective. We need another Soros to force the issues - as he did in 1992 - even if his motives were no more honourable than those of the bankers and politicians.

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I like the response, you can't fault an argument like that and good on you for even trying, but lets be really honest, the govt and MPs really dont give a toss at all about the plight of the average person in this country, they are far too busy milking as much as they can until the next lot get power and screw it all, and us, up again.

The only thing they will listen to is people on the streets and civil unrest, unless they see burning cars on the news they assume that they can get away with mismanaging this country, It isn't by coincidence that certain events transpire to keep the masses distracted from the real problems that we should all be concentrating on and getting angry about, the debt and the disaster is unfolding before us, it was the same with Labour, it's the same with the Conservatives, two cheeks of the same a**e with the a**holes in the middle, thats modern politics in this country.

The housing con is just a symptom of an even more insidious disease, the greed and selfish way this is all set up to run, to really make a change you have to start at the root of the problem.

Meet the new boss, same as the old boss until then I guess.. :huh:

Edited by JustAnotherProle

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Translated for you. :)

LETTER ONE

The interest rates offered on savings accounts are a commercial decision for providers. A number of banks and other institutions continue to offer savings interest rates significantly above the Bank of England bank rate, and savers can ensure they get the best possible income from their savings by shopping around. The Money Advice Service publishes comparative tables of savings accounts and the interest rates offered. These tables can be found at www.moneyadviceservice.org.uk or by calling the Money Advice Service helpline on 0300 500 5000.

Stop bothering us with this you little twerp.

Mr P also raises his concern that housing is difficult to afford. The Government recognises the importance of the housing market, and of a need for a sustainable mortgage market to support a stable housing market.

Stop thinking about this as an issue of prices, think of it as a borrowing problem.

The current low level of mortgage lending in part reflect a fall in demand, due to economic uncertainty. It also reflects a fall in supply, as banks take a more cautious approach to lending in light of the mistakes made in the run-up to the crisis. The Government is determined that creditworthy borrowers looking to buy a home or move should have access to affordable mortgages.

You see, the problem is borrowing and we want you to be able to borrow as much as possible.

The Government's tough action on the deficit will help keep market interest rates low. Failure to act could lead to rising costs for borrowers. The Government is also working with the FSA, the Bank of England and international authorities to maintain stability in the financial system. This will ensure banks and building societies have access to the funds they need to lend.

You are not even a 'consumer', you are a debtor and the whole country is geared to help you get in as much debt as possible.

In addition, Budget 2011 also included a number of measures to encourage the housing market and to assist first time buyers. In particular, the Government announced it was investing £250 million, alongside house-builders, in a new FirstBuy scheme that will offer 20 per cent equity loans to first-time buyers purchasing new-build homes. Further details are available at http://www.homebuy.co.uk/.

We'll even help you cheat basic lending rule so you can borrow more than you can afford to pay back.

Please pass on my thanks to Mr P for taking the trouble to make us aware of his concerns.

Please thank Mr P for sending us this simpleton who didn't get the message that irrecoverable levels of indebtedness is the way we want them to go.

Thanks for trying.

I think you might have well spoken to a wall, but at least we get proof that the government is completely dedicated to drowning us all in bank enriching debt.

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Hoban is my MP. In opposition he replied sensibly to all my letters, assuring me he shared my concernes. Now he's in power he seems to have gone strangely silent.

Britain is a two party state. Not parties of left and right, but parties of government and opposition. It is the position in this latter dichotomy which confers upon a politician his persuasions, not his supposed views on social and econimic policies.

This is why it is quite pointless voting, for no matter who you choose, you end up with a party of government.

Edited by Sledgehead

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I applaud your decision to act...

Personally, I don't bother writing to MPs - I feel it most likely to re-enforce their sense of self-important arrogance. I'd always anticipate that political movers would see my communication as an opportunity to use sophistry to avoid the real issue and push a different agenda all together.

I'm still trying to establish action I'd consider appropriate... Your objective seems right (i.e. raise interest rates - and raise them now) but I'm certain that merely voicing democratic concern will prove utterly ineffective. We need another Soros to force the issues - as he did in 1992 - even if his motives were no more honourable than those of the bankers and politicians.

+1 and +1

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I like the response, you can't fault an argument like that and good on you for even trying, but lets be really honest, the govt and MPs really dont give a toss at all about the plight of the average person in this country, they are far too busy milking as much as they can until the next lot get power and screw it all, and us, up again.

The only thing they will listen to is people on the streets and civil unrest, unless they see burning cars on the news they assume that they can get away with mismanaging this country, It isn't by coincidence that certain events transpire to keep the masses distracted from the real problems that we should all be concentrating on and getting angry about, the debt and the disaster is unfolding before us, it was the same with Labour, it's the same with the Conservatives, two cheeks of the same a**e with the a**holes in the middle, thats modern politics in this country.

The housing con is just a symptom of an even more insidious disease, the greed and selfish way this is all set up to run, to really make a change you have to start at the root of the problem.

Meet the new boss, same as the old boss until then I guess.. :huh:

I understand your comments and share the frustrations, believe me. But we don't need burning cars etc, all we need is to kick the lot of them out on ballot day and vote in decent local independents from each constituency and start again with MPs who really do represent us. Problem is as ever, will those independents succumb to the same temptations and go bad?

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The only thing they will listen to is people on the streets and civil unrest, unless they see burning cars on the news they assume that they can get away with mismanaging this country

Politicians don't fear unrest, they love it as it gives them an excuse for more restrictive laws.

What they really fear is if people stopped paying taxes en masse, and if people stopped using the elite's money en masse.

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...this is where Hoban get's it wrong... the financial illiterate.... :rolleyes:

and savers can ensure they get the best possible income from their savings by shopping around.

...the more rates are above the market norm the higher the risk to the depositor....think of Icelandic Banks ... :rolleyes:

Edited by South Lorne

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Politicians don't fear unrest, they love it as it gives them an excuse for more restrictive laws.

What they really fear is if people stopped paying taxes en masse, and if people stopped using the elite's money en masse.

It is almost irrelevant who did this - as much as it i a trajedy for those involved in the big scheme of things thee actions and even 911 and 711 are meaningless if you look at the bogger picture of what reall is blighting millions of people's lives. The bed wetting fropping of rates post both of thoe last two events have caued far more damage than any terrorist could wih in the wildest dreams, together with distruption and full scale loss of democray and privacy enacted by governments on their own populations.

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Politicians don't fear unrest, they love it as it gives them an excuse for more restrictive laws.

What they really fear is if people stopped paying taxes en masse, and if people stopped using the elite's money en masse.

Spot on.

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This is why it is quite pointless voting, for no matter who you choose, you end up with a party of government.

This. Depressingly, succinctly, correct.

Doesn't make the football system of party voting practiced by everybody any more palatable though.

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Hi all.

I wrote to my MP, and I received a reply from Mark Hoban, of HM Treasury.

I did the same three times last year to my own MP. Jeremy RhymingSlang, the Kultcha Secretery, doncha know...

I got identical responses each time - very much along the lines of what you got.

I decided this government, whilst it doesn't seem to want nominal HPI going forward, has now made it policy to stop nominal falls, and do the whole normalisation process through inflation over x number of dead years of ZIRP, Japan-style.

So, we decided "f*ck this for a game of soldiers. I'm in my mid-forties and need to start over-paying down a mortgage ASAP, while rates are low."

So we bought back in last month, having STR'd in 2007.

I know that sounds mad, but there are mitigating circumstances that I can live with;

  1. We found a place that had been on the market for nearly two years. Highly motivated sellers, who'd chased the market down and become desperate.
  2. It had come down 25% on the original 2009 asking price, (which itself was below the ludicrous heights of 2007,) but it's big enough for us to live here as long as we need, and we got another 5% off on our accepted offer. I'd have been happy with a national 30% HPC from 2007, but our place seemed to decide to go and have an HPC all on it's own, while the rest of the town kept going up, propped up by DFL's with their attitudes and bubble cash.
  3. No job is secure, but my whole success or failure is based on economic factors almost exclusively outside the UK, so I'm neatly hedged across Europe, Middle East, Africa, and the US to an extent.
  4. Youngest just started school full time, so Mrs Buzz can pick up some of the load of increasing rates, by working part time. She's already got a couple of part-time jobs, that bring in some handy cash, and she could do more if she wanted.

So, while the numbers seem to stack up, my situation like many others is a sad reflection of the way we've all been ripped off by these b@stards, and I feel like I've been mugged by my own government - to whom I pay a huge amount of tax, only for them to piss it up the wall through arrogance, inefficiency, incompetence, corruption and hubris.

I'm going to get on with my life now, and play the hand I've been dealt. BUT, I will never, ever, cooperate with these b@stards again. On anything at all.

I'm going to find every way I can to be civilly disobedient, and/or disappear off the radar whereever I can. I'm a disabled homosexual Moslem, with multiple children by different partners as far as the census is concerned, and as soon as I can leave the country, and take my family, tax, and intellectual and practical contributions with me then I will. And leave this dump to the fate it deserves.

A sad day. But I'm sure I'm not alone.

Oh, and now I have to do loads of frickin' DIY. No more ringing up the landlord with "hey, the septic tank stinks. See to it will you, there's a good chap..." :(

B

Edit: Spoling

Edited by buzzardo

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Hi all.

I wrote to my MP, and I received a reply from Mark Hoban, of HM Treasury.

I thought you may be interested to see the warped logic they practice.

"Do you realise those in deep debt number something like 1 to 2 million, as opposed to something like 10 million savers? This fact may reflect at the next general election."

Pity you didn't go for the jugular here and say

- you strongly suspect all Govt motives are/have been to support City Banks and their owner/shareholders wealth - at the expense of UK taxpayers! B)

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I'm going to get on with my life now, and play the hand I've been dealt. BUT, I will never, ever, cooperate with these b@stards again. On anything at all.

He, he, thanks for sharing your thoughts with us. I very feel aligned with what you said.

One thing though, when filling-out forms, don't use 'homosexual Moslem'. That's an oxymoron. Moslem's don't do HS, no way, big time.

cheers

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Good response, good points that you make. Personally I don't think you should call people stupid in such a letter and it was a bit long-winded.

The first part of his response is irrelevant - you can shop around at any stage of an economic cycle - don't see that he was making any relevant point here.

Facts are that house owners are a powerful group and govts don't want to annoy them. Savers don't see their money disappearing in quite the same tangible way so don't complain. The country runs on debt and pulling the rug has immediate negative impact. Governments know this.

It disgusts me how all governments work to the beat of HPI.

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Hoban is my MP. In opposition he replied sensibly to all my letters, assuring me he shared my concernes. Now he's in power he seems to have gone strangely silent.

Britain is a two party state. Not parties of left and right, but parties of government and opposition. It is the position in this latter dichotomy which confers upon a politician his persuasions, not his supposed views on social and econimic policies.

This is why it is quite pointless voting, for no matter who you choose, you end up with a party of government.

The old anarchist slogan is 'whoever you vote for you end up with the government"

I used to know 'socially' a local councillor, she knew absolutely nothing whatsoever about real political concepts and ideas. She used to remark that "I should be spending more time talking to people like you", to which i responded,"if you had ideas and opinions like I do then you wouldn't be in the position you are". The modern carrier politician is utterly without any kind of principle or political ideology, they simply adapt to whatever position is most likely to get them elected based on focus groups. They are a perfectly evolved life-form for the environment in which they live, if they did not behave as they do, then they simply wouldn't be elected. Are they to blame for that? possibly not, because ultimately politicians simply represent the most bland cocktail of public opinion. If our politicians are stupid and ignorant then its because this is representative of the majority in the electorate, garbage in = garbage out.

Edited by enrieb

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Politicians don't fear unrest, they love it as it gives them an excuse for more restrictive laws.

they do in france!...bastille day is still quite fresh in their minds

good role model.

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He, he, thanks for sharing your thoughts with us. I very feel aligned with what you said.

One thing though, when filling-out forms, don't use 'homosexual Moslem'. That's an oxymoron. Moslem's don't do HS, no way, big time.

cheers

While the organised religion proscribes against it, a quick google shows there are plenty of gay people who call themselves Muslim.

Your spelling made me wonder - what is the preferred version?

http://islam.about.com/od/basicbeliefs/g/muslim.htm

http://www.renaissance.com.pk/janq82y1.htm

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  • 284 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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