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deus ex machina

Deja Vu

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Having visited this site over the past 2 years I have come to the inescapable conclusion that most posters are theorists without any experience.

Not wishing to do anyone down, but 6th form beards working on their essays, vacuous wannabees stalled in some tedious deadend job or erstwhile property owners experiencing the fallout from a terminal relationship with a dodgy partner or empty bottle seem to be proliferating.

I have first hand knowledge of the consequences of socialist economics since the 1970s and believe me it has always been the same. The key will be taxation and public expenditure. The current regime have a problem now which they cannot address politically, nor will economic principles assist. Therefore, they will do what comes naturally and devaluation of our currency will ensue. Eventually, inflation and unemployment will conjoin and they will be consigned to oblivion for, hopefully, the next 20 years. In the meantime, don't take out any large loans.

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Don't know anything about 6th form beards and vacuous wannabees... :)

I have first hand knowledge of the consequences of socialist economics since the 1970s and believe me it has always been the same. The key will be taxation and public expenditure. The current regime have a problem now which they cannot address politically, nor will economic principles assist. Therefore, they will do what comes naturally and devaluation of our currency will ensue. Eventually, inflation and unemployment will conjoin and they will be consigned to oblivion for, hopefully, the next 20 years. In the meantime, don't take out any large loans.

...but that pretty much summarises everything everybody needs to know! I'm only 25 but I can feel the march of the 70's in the distance.

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What's socialist about unnaturally low interest rates and unregulated lending?

Part of the problem is that we don't have political idealogies that can describe contemporary times in which we live. What we have with NuLabour, bizarely, is a sort of pseudo-marxism in bed with large corporate concerns.

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Part of the problem is that we don't have political idealogies that can describe contemporary times in which we live. What we have with NuLabour, bizarely, is a sort of pseudo-marxism in bed with large corporate concerns.

Its plastic socialism either way its all the same thing the country ends up in huge debt completley fooked and someone has to dig it out of the mire.

Labour, New Labour, socialism whatever you want to call it have and always will be good for nothing.

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What's socialist about unnaturally low interest rates and unregulated lending?

Nothing intrinsically... however, in his wiser more youthful days Mr Greenspan put it thus:

"government bonds are not backed by tangible wealth, only by the government's promise to pay out of future tax revenues, and cannot easily be absorbed by the financial markets. A large volume of new government bonds can be sold to the public only at progressively higher interest rates... The abandonment of the gold standard made it possible for the welfare statists to use the banking system as a means to an unlimited expansion of credit... The holder of a government bond or of a bank deposit created by paper reserves believes that he has a valid claim on a real asset. But the fact is that there are now more claims outstanding than real assets. The law of supply and demand is not to be conned. As the supply of money (of claims) increases relative to the supply of tangible assets in the economy, prices must eventually rise. Thus the earnings saved by the productive members of the society lose value in terms of goods. When the economy's books are finally balanced, one finds that this loss in value represents the goods purchased by the government for welfare or other purposes with the money proceeds of the government bonds financed by bank credit expansion... The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves... This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard."

Interest rates have been kept artificially low by leaving house prices off the CPI and by shuffling the order of the items on the list.

All that government debt has been taken on by banks which in turn have passed it on to house buyers and owners, and combined with the low interest rates, has given us the base ingredients for the housing boom. Add to that bubble frenzy and away it goes.

The housing bubble has been the most massive stealth tax for wealth redistribution ever.

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I owned property through the last crash. It's all real. And as the correction (crash is a misnomer really) develops you will never know about it unless you keep an eye on property prices.

The muppet EA's, mortgage brokers and other vested interests (I honestly don't think they understand the first thing about the property market and how the economics work, at least not the idiots who get their faces on the TV and feed articles to the media) will talk the market up all the way down to the bottom. Just like last time, if you just get your information from the media then it will be like it's not happening.

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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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