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Realistbear

Breakthrough! Observer Tumbles Miracle Economy

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I have conistently argued that Gordon's Miracle Economy is based on HPI and MEW and nothing more. Looks like the mainstream press have woken up to the idea--at last:

http://observer.guardian.co.uk/cash/story/0,,1774124,00.html

Would you credit it? King has just woken up to debt

Jill Insley

Sunday May 14, 2006

The Observer

So Mervyn King, governor of the Bank of England, believes spiralling levels of personal debt are becoming a 'potentially large social problem'. Suddenly the number of people going bankrupt and approaching debt charities for help seems to be sinking in. He has also warned homeowners that house prices seem 'remarkably high'.
What has King been doing for the past few years? His own organisation produces monthly statistics showing the level of debt - and last August it showed that we in the UK owed a massive £1.12 trillion. Yet somehow it was a good time to cut the base interest rate by 0.25 per cent.
Not surprisingly, just nine months later, we owe £60bn more.
The Bank of England and Chancellor Gordon Brown have relied on the ready supply of credit and rising house prices to fund a merry spending spree - that we have all indulged in since the mid-1990s - to prop up the economy. Last summer the base rate was cut to stave off a recession - we were encouraged to keep spending so businesses wouldn't suffer a downturn
.
And the government is responsible for teaching a whole generation to borrow: hundreds of thousands of people under the age of 30 have built up huge debts just to get through higher education.
:lol:
The last time King pronounced on property prices there was a slump in the market, and the same is likely to happen now. Wouldn't it be better for the government to
do something to control the amount of credit
offered to us poor sacrificial lambs?

They have FINALLY seen it! Lets hope the sheeple wake up next.

Edited by Realistbear

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I have conistently argued that Gordon's Miracle Economy is based on HPI and MEW and nothing more.

Don't forget the stealth taxes/fiscal drag and the huge increase in public sector jobs (despite speeches to the contrary). This is a huge stack of cards that will come tumbling down - bringing a world of pain with it. No wonder Brown wants out ASAP.

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...Why didn't Mervyn King see it was all HPI and MEW

http://observer.guardian.co.uk/cash/story/0,,1774124,00.html

Would you credit it? King has just woken up to debt

Jill Insley

Sunday May 14, 2006

The Observer

Would you credit it? The Observer has just woken up to debt.

'Bout time this tiresome mouthpiece for the chattering classes did some real journalism instead of selling blow-job pieces about Holiday homes drizzled with raspberry jus in Provence.

Pretentious *****3r5. (except Andrew Rawnsely (sp??) ;)

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I have conistently argued that Gordon's Miracle Economy is based on HPI and MEW and nothing more. Looks like the mainstream press have woken up to the idea--at last:

I have thought this for a couple of years now, and i say this as a very hurt ex Labour man, it pains me to say it.

It is why i still think there are winners and losers yet to come from this property bubble.

The winners will be the ones that are still able to sell up on time to clear their debts, the losers will be the ones who leave it too late because the market will be flooded by then and it will be too late.

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  • 336 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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