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I Had No Idea Of This Fact Until Today

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Yep, same as UK

When US housing market stalls (now..) , US consumption stalls (mar - aug 06) and the big question is..

Is there enough demand in Asia to pick up the slack ?

A: No! Falling World Demand.

The Federal Reserve will print stacks of cash to prevent liquidity problems.

Opening of Iranian Oil Bourse will promote all currencies vs the dollar and lead to the much vaunted collapse of the worlds reserve currency.

The winners: Gold and the Soviet Bear.

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Yep, same as UK

When US housing market stalls (now..) , US consumption stalls (mar - aug 06) and the big question is..

Is there enough demand in Asia to pick up the slack ?

A: No! Falling World Demand.

The Federal Reserve will print stacks of cash to prevent liquidity problems.

Opening of Iranian Oil Bourse will promote all currencies vs the dollar and lead to the much vaunted collapse of the worlds reserve currency.

The winners: Gold and the Soviet Bear.

and the EU!!!!...they have something like 50% of their currency reserves in GOLD!!!

.....they will want america to take action against iran because the EU know the war debt will cripple them(so will subtly goad a confrontation on one hand,and obstruct any UN diplomatic solution on the other).....leaving france and germany in the driving seat for the "new world order"

...and it gets worse for the yanks...if they do use nukes(IMHO highly likely this time given the nature of the opponent and the stretched US military),the amount of damage it will do to their trading reputation will send them right down the toilet......it probably won't be obvious for a few years yet,but as a natural cycle ends,it will be the european consumer that holds the purse-strings.

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Yep, roughly two-thirds of UK economic activity is consumer spending.

The balance is goverment spending, corporate spending and exports.

There is a very close correlation between house price rises and consumer spending, as prices rise consumers feel wealthier and spend (The Economist has done some great work on this). Although the BOE would like you to think otherwise.

Unfortunately when prices start to fall, consumers feel poorer, and stop spending. See Germany.

Exactly that is now happening in the UK.

Jobs start to go when the spending falls and the whole thing goes pear shaped.

All sorts of other unpleasant, unwanted side effects start to take effect, and life gets pretty tough for those who thought the good times would last forever.

Edited by BandWagon

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Yep, roughly two-thirds of UK economic activity is consumer spending.

The balance is goverment spending, corporate spending and exports.

There is a very close correlation between house price rises and consumer spending, as prices rise consumers feel wealthier and spend (The Economist has done some great work on this). Although the BOE would like you to think otherwise.

Unfortunately when prices start to fall, consumers feel poorer, and stop spending. See Germany.

Exactly that is now happening in the UK.

Jobs start to go when the spending falls and the whole thing goes pear shaped.

All sorts of other unpleasant, unwanted side effects start to take effect, and life gets pretty tough for those who thought the good times would last forever.

Its an economy a ten year old could invent.. :o

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  • 301 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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