dinsdale Posted September 22, 2008 Share Posted September 22, 2008 One thing we can certain of - the pips of the rich will not be squeaking this time. Quote Link to comment Share on other sites More sharing options...
Icantbelieveitsnotbutter Posted September 22, 2008 Share Posted September 22, 2008 This is another one of those things that falls into the popular misconception category - just like 'we have no manufacturing' and 'we have no exports'.Now we have 'we don't save anything'. Yet, Northern Rock have taken in £4 billion in deposits since being nationalized. On the estate behind me, which I regularly walk around, I note lots of little building/gardening jobs going on. Quite a few houses with skips in the drive and piles of sand and a mixer. And several huge extensions too. You'd get the feeling on here that the economy is now non-existent. Are you still working? Still earning money? Still buying food and clothes and going out? Life pretty much still normal? Life doesn't stop in a recession. And the pipleine of activity carries on, but less new work is added, and so the slowdown takes time, it takes a lot to reverse momentum, but now that it has, it will be very difficult to start it all up again. The difference between growth and recession is a few percent only, the impact is unevenly felt. And coutesy of the Govt, we have a bigger proportion of the working population employed in the public sector with secure pensions and thinking they have secure jobs, no change in behaviour there. Yet... Northern Rock has not taken new deposits, it has cannibalised others with its Govt guarantee and high rates. The savings rate will rise at the expense of consumer spending. Economists talk about reasonable expectations ruling behaviour. It seems to me whilst some accept things have changed, there is still lots of denial in the system, as evidenced by the number of people taking their houses off the market in the belief that this is all down to banks being reluctant to lend and normal service will be resumed in due course. Quote Link to comment Share on other sites More sharing options...
Guest pioneer31 Posted September 22, 2008 Share Posted September 22, 2008 He was on Radio 4 as well just now. Refused to comment on whether taxes would rise, but did say that public borrowing would have to increase rather than cutting back on spending.Muppet. I really am starting to despair of our monetary policy That's how you know we have a Labour govt Quote Link to comment Share on other sites More sharing options...
The Spaniard Posted September 22, 2008 Share Posted September 22, 2008 (edited) On the Beeb, in answer to the question of whether or not he would be raising taxes, AD repeatedly stated that "now is not the time to be taking money out of the economy". This non-answer is clearly intended to keep his options open while at the same time giving the impression that he will not be raising taxes. So, to finance the (increased) public spending, the Treasury must issue more Gilts, that is it must borrow more. To do so, and at the same time to remain consistent with AD's statement, the money to buy the the new Gilts must be new money, issued into existence for the purchase of the Gilts. Since Gilts are generally auctioned, and some of the purchasers are pension funds and investment trusts who often buy with pre-existent money, how can AD be sure that he will "not take money out of the economy"? Is there some special arrangement whereby Gilts are sold only to money-issuing banks? Edit: spelling Edited September 22, 2008 by The Spaniard Quote Link to comment Share on other sites More sharing options...
renterbob Posted September 22, 2008 Author Share Posted September 22, 2008 This is another one of those things that falls into the popular misconception category - just like 'we have no manufacturing' and 'we have no exports'.Now we have 'we don't save anything'. Yet, Northern Rock have taken in £4 billion in deposits since being nationalized. On the estate behind me, which I regularly walk around, I note lots of little building/gardening jobs going on. Quite a few houses with skips in the drive and piles of sand and a mixer. And several huge extensions too. You'd get the feeling on here that the economy is now non-existent. Are you still working? Still earning money? Still buying food and clothes and going out? Life pretty much still normal? Applied for a mortgage recently? A car loan? A new credit card? An increase in your credit cards limit? Still normal? Quote Link to comment Share on other sites More sharing options...
19 year mortgage 8itch Posted September 22, 2008 Share Posted September 22, 2008 Now we have 'we don't save anything'. http://www.creditaction.org.uk/sept08.html You're so right, the latest Credit Action stats say that during Q1 2008 the net savings rate was a massive... . . . . . . . . . 1.1% So you're right, we do save something. Quote Link to comment Share on other sites More sharing options...
Leonard Hatred Posted September 22, 2008 Share Posted September 22, 2008 This was the most satisfying BBC Breakfast interview I've ever seen. See that, sheeple? They splurged all the money that they had in the good times . The war chest that Brown had is all gone. Taxation has to go up. Quote Link to comment Share on other sites More sharing options...
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