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undersupply

Ecb Is Wrong To Stamp On House Prices.

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In the U.K., there is a strong, positive relationship between rising house prices and consumer spending. Much the same is true in the U.S. It might also be true in Europe -- if the ECB would only give it a chance.

The growth that results might be imbalanced. It may be too reliant on bank borrowing, debt and consumer spending. That is still preferable to no growth at all.

...in other words, so long as we borrow what we can, so we can go out and spend and 'pretend' to be rich, that's ok.

History tells us otherwise.

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Don't know why he doesn't just got the whole hog. If consumption at any cost is so important governments should hand out wheelbarrows to each and every citizen who can then trundle down to the central bank where their barrow will be filled with as much money as they like.

Oh, I remember this was tried before. :ph34r:

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...in other words, so long as we borrow what we can, so we can go out and spend and 'pretend' to be rich, that's ok.

History tells us otherwise.

Dont worry, the futures bright for jobs: :D

The Irish Examiner reports that up to 20,000 jobs could be lost in Irish-owned industries over the next five years, according to one of the country’s top economists.

This is in addition to the 20,000 jobs already lost over the last four years, after the industry peaked in 2001.

Davy economist Rossa White said: “Unless we keep improving competitiveness by boosting productivity in indigenous manufacturing and by keeping real CPI-adjusted wage inflation at worst in line with productivity growth, I fear that further jobs will be lost over the next four or five years.”

Mr White said the National Wage agreement does not give indigenous manufacturing firms the scope they need to be flexible on wages.

“I don’t think it is doing them any favours. They should be able to keep wage inflation down to regain competitiveness, if that is what the market demands.”

That is what has been done in Germany since 2000 and, as a result, that country has regained competitiveness and taken market share from Italian and French exporters,” he added.

Although global trade growth has been healthy over the last two years, Irish manufacturing exporters have lost significant market share.

“If the erosion of competitiveness is to be halted, the forthcoming partnership agreement must budget for wage increases that are no higher than in the rest of the euro area,” said Mr White.

Latest statistics revealed that industry was the worst performing area of the economy last year, apart from agriculture. Overall, production rose 3.2% last year.

Mr White said that after the blip in 2004, multinationals once again heavily outperformed the indigenous manufacturing sector.

Output in the modern or multinational industry increased by 4.7% last year but indigenous production all but stalled, inching up 0.2%.

“Fortunately, both sectors enjoyed a strong end to the year; otherwise the situation would have been much worse,” he said.

He added that leather manufacturing has been all but wiped out as production plunged 47% last year.

“Textiles is another industry that has been under severe pressure.

“Manufacturing of textiles and textile products saw output drop 10% in 2005,” he said.

Among the other indigenous sectors that saw production shrink last year were agribusiness, basic metals, fabricated metal products and mining and quarrying, despite the global commodities boom.

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Don't know why he doesn't just got the whole hog. If consumption at any cost is so important governments should hand out wheelbarrows to each and every citizen who can then trundle down to the central bank where their barrow will be filled with as much money as they like.

Oh, I remember this was tried before. :ph34r:

This IS the Achilles Heel of capitalism. It relies on constant growth and occassional collapse to make room for...

No pleasure without pain ;)

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In the U.K., there is a strong, positive relationship between rising house prices and consumer spending. Much the same is true in the U.S. It might also be true in Europe -- if the ECB would only give it a chance.

The growth that results might be imbalanced. It may be too reliant on bank borrowing, debt and consumer spending. That is still preferable to no growth at all

I can make my consumer spending grow. I will take out a million pound loan & have a party with it. That is preferable to having no Party at all

B)

Edited by A Fool & His Borrowed Money

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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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