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RichM

Niall Ferguson Highlights 'housing Bubble'

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The Oracle speaks, and it's not good news: 'Gordon… you've messed up'

Nice article.

Here's the fun part (a possible conversation between Greenspan and Brown):

"First, I'm a little nervous about the growth of public sector borrowing. Second, there's been one hell of a housing bubble here and I'm worried that as it deflates we're going to slide into recession. Worst of all, our pensions system seems to be heading for meltdown. And I nearly forgot our current account deficit, which just refuses to go away. I wonder if these problems sound familiar to you?"

Classic, cheers Niall ;)

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The Oracle speaks, and it's not good news: 'Gordon… you've messed up'

Nice article.

Here's the fun part (a possible conversation between Greenspan and Brown):

Classic, cheers Niall ;)

Yeah, does he read this place?

The article is a vague facsimile to this satire recently linked by Durch.

And we've covered yields, pensions and bonds

Maybe we are now the primary source for tedious bull$hit? Nobody cares about this stuff but it has dramatic affects on peoples' lives.

Naill seems to be under the mistaken impression that inflation is genuinely low, he should point out the extent to which they cook the books and keep rates artificially low.

If you walked up to the man on the street, grabbed his wallet out of his coat and stood in front of him and proceeded to take out £5 and then walked off he would be a bit perturbed to say the least, if you robbed £500 from him by increasing the money supply he wouldn't even know, let alone question the mechanisms behind it.

Inflation is the best tax system ever devised, but we now have a weird sort of inflation where things are being debased as before but the 'flexibility' in the labour market in the form of globalisation, out-sourcing and migrant labour have kept wages pretty static. Meanwhile everything that comes out of China such as electronics, textiles and consumer goods has fallen in price yet everything that goes into China such as oil, commodities like steel, ore, concrete and precious metals have leapt in price.

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Inflation is the best tax system

does the government set money supply. i thought it was the banks.

Despite the Name (BOE or Fed' Reserve) these organisations are private companies, owned by the same european families.

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does the government set money supply. i thought it was the banks.

The government issues bonds, controls banking regulation (or lackthereof) and directly appoints those who set interest rates.

Despite the Name (BOE or Fed' Reserve) these organisations are private companies, owned by the same european families.

The BoE is nationalised, this has been the case since after WWII. The Fed's chairman is apointed by the president and they are answerable to house and senate committee. Shareholders in the Fed are required to deposit funds in the interests of financial stability, this covers the Fed's operating costs and they recieve a whopping 6% dividend for their trouble.

If you're looking for a conspiratorial cabal of "european families" then I'm afraid it's not here.

Edited by BuyingBear

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  • 339 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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