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Guest KingCharles1st

"strong Economy." Now Just What Does That Mean?

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Guest KingCharles1st

Having read the recent credit card articles, I am now starting to realise that the city's and my own definition of a strong economy are totally at loggerheads.

The City's- "The consumers ability to spend money from any source (including mostly borrowed) on goods supplied by companies that financial institutions and shareholders have a financial interest- thereby making money.. (in this case money does not always mean profit.)

My definition- "Strong economy means people making real things and selling them, thus showing a better financial position at the end of labour than at the start. This ethos reflected throughout the employment base using little if any borrowed funds being the ideal."

It appears I am in the minority...

Edited by KingCharles1st

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Yeah, takes a while to get it, but as long as people are spending (whereever it comes from) then the money-go-round continues and everyone thinks it's dandy. Just been reading 'Atlas Shrugged', goes on about this quite a bit.

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The government and its media think 'large' means the same as 'strong' - as in 'we're one of the wealthiest countries on earth' - notice the use of 'we' to make us all feel proud and nationalistic. John 'Dic Sion Dafydd' Humphrys is one of the worst weers.

Edited by gruffydd

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Having read the recent credit card articles, I am now starting to realise that the city's and my own definition of a strong economy are totally at loggerheads.

The City's- "The consumers ability to spend money from any source (including mostly borrowed) on goods supplied by companies that financial institutions and shareholders have a financial interest- thereby making money.. (in this case money does not always mean profit.)

My definition- "Strong economy means people making real things and selling them, thus showing a better financial position at the end of labour than at the start. This ethos reflected throughout the employment base using little if any borrowed funds being the ideal."

It appears I am in the minority...

Switzerland is my ultimate definition of a strong economy.

2.6% unemployment, steady growth year after year combined with low inflation and a current account surplus that puts the US and the UK economies to shame. They have a high standard of living generated from their own earnings, and not on debt issuance.

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Switzerland is my ultimate definition of a strong economy.

2.6% unemployment, steady growth year after year combined with low inflation and a current account surplus that puts the US and the UK economies to shame. They have a high standard of living generated from their own earnings, and not on debt issuance.

Switzerland is also very good at attracting a wide range of cosmopolitan high net worth individuals thanks to its financially discreet and politically secure environment .............. ;)

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Switzerland is my ultimate definition of a strong economy.

2.6% unemployment, steady growth year after year combined with low inflation and a current account surplus that puts the US and the UK economies to shame. They have a high standard of living generated from their own earnings, and not on debt issuance.

What and 2 banks needing about $70bn in new capital just to survive???

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Switzerland is also very good at attracting a wide range of cosmopolitan high net worth individuals thanks to its financially discreet and politically secure environment .............. ;)

It is. But look at US and British Banks and their courting of Sovereign Wealth Funds to shore up their balance sheets. Mind you, in recent months, because of the massive write-downs, it is the Sovereign Wealth funds that look a little silly.

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Guest pioneer31

Strong Economy = sheeple spending increasing amounts of money that they don't have.

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It is. But look at US and British Banks and their courting of Sovereign Wealth Funds to shore up their balance sheets. Mind you, in recent months, because of the massive write-downs, it is the Sovereign Wealth funds that look a little silly.

With respect, I don't think that's a valid comparison. The UK and US (well their all powerful financial sectors ......)

seem happy to see huge assets being sold to foreigners for a quick buck (privatised utilities, airports, over-stretched banks) and appear unconcerned about the decline of their manufacturing base, whereas the Swiss just want to harbour and manage wealth to the benefit of their financial and trading sectors.

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Guest sillybear2

No, the reward for your surplus labour is the ability to pay interest on the principle!

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Switzerland is also very good at attracting a wide range of cosmopolitan high net worth individuals thanks to its financially discreet and politically secure environment .............. ;)

I thought that it was Dubai and Singapore these days..............Switzerland is soooo last season darling. :P:P

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With respect, I don't think that's a valid comparison. The UK and US (well their all powerful financial sectors ......)

seem happy to see huge assets being sold to foreigners for a quick buck (privatised utilities, airports, over-stretched banks) and appear unconcerned about the decline of their manufacturing base, whereas the Swiss just want to harbour and manage wealth to the benefit of their financial and trading sectors.

It was tongue in cheek. You are right though about lack of concern in the US and the UK for the manufacturing base, and services base I might add. They are just too eager to hand over what took generations to build.

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Switzerland is my ultimate definition of a strong economy.

2.6% unemployment, steady growth year after year combined with low inflation and a current account surplus that puts the US and the UK economies to shame. They have a high standard of living generated from their own earnings, and not on debt issuance.

Much of Switzerland's success comes from attracting lots of foreign funds into their banks - of which their biggest one has stupidly jumped into US sub-prime leaving them with tens of billions of dollars of losses and requiring a huge capital injection. The #2 international Swiss bank isn't exactly rated as 'safe as houses' either right now with a lot of suspicion about how their books really look.

However, the Swiss do a pretty good job of running their country in a sound manner and balancing their books. Without the foreign income though, things would be a lot stickier for them. Irrespective of what happens with the global financial crisis, the secrecy laws which have attracted much of the foreign capital into the Swiss system are under threat from other governments who aren't too happy about people using them to dodge tax.

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Much of Switzerland's success comes from attracting lots of foreign funds into their banks - of which their biggest one has stupidly jumped into US sub-prime leaving them with tens of billions of dollars of losses and requiring a huge capital injection. The #2 international Swiss bank isn't exactly rated as 'safe as houses' either right now with a lot of suspicion about how their books really look.

However, the Swiss do a pretty good job of running their country in a sound manner and balancing their books. Without the foreign income though, things would be a lot stickier for them. Irrespective of what happens with the global financial crisis, the secrecy laws which have attracted much of the foreign capital into the Swiss system are under threat from other governments who aren't too happy about people using them to dodge tax.

Yes, UBS appear to have incurred the biggest losses of any bank from the mortgage meltdown. Still, it is a testement to the strength of the Swiss Banks that they incur so much loss and yet carry on in a canter. A number of these banks are using the current market situation to essentially write down as much as possible, which is a far cry from this time last year when they refused to recognise there was even an issue.

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Much of Switzerland's success comes from attracting lots of foreign funds into their banks - of which their biggest one has stupidly jumped into US sub-prime leaving them with tens of billions of dollars of losses and requiring a huge capital injection. The #2 international Swiss bank isn't exactly rated as 'safe as houses' either right now with a lot of suspicion about how their books really look.

However, the Swiss do a pretty good job of running their country in a sound manner and balancing their books. Without the foreign income though, things would be a lot stickier for them. Irrespective of what happens with the global financial crisis, the secrecy laws which have attracted much of the foreign capital into the Swiss system are under threat from other governments who aren't too happy about people using them to dodge tax.

Looking after dirty money can be very profitable. Especially if you do not give it back! :rolleyes:

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Having read the recent credit card articles, I am now starting to realise that the city's and my own definition of a strong economy are totally at loggerheads.

The City's- "The consumers ability to spend money from any source (including mostly borrowed) on goods supplied by companies that financial institutions and shareholders have a financial interest- thereby making money.. (in this case money does not always mean profit.)

My definition- "Strong economy means people making real things and selling them, thus showing a better financial position at the end of labour than at the start. This ethos reflected throughout the employment base using little if any borrowed funds being the ideal."

It appears I am in the minority...

If there was no debt there would be no money.

Debt is okay provided you have the productivity to repay it.

Borrowing vs Growth.

The problems come when productivity can't match the borrowing. Usually happens when people borrow to consume and not to invest to allow increased productivness.

Edited by humanoid76

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  • 395 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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