Saturday, January 13, 2007

A politicised attack of Brown’s monetary policy

It's Brown's fault we all have to tighten our belts

The Chancellor's excessive borrowing is the cause of Britain's £1.3 trillion debt mountain, and he is unable to recognise the true nature of inflation, claimes this article. Although this article has a degree of political bias it is hard to ignore, it makes some pertinent points about the way money supplies are being governed in this country.

Posted by jellycaster @ 12:33 PM (620 views)
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11 thoughts on “A politicised attack of Brown’s monetary policy

  • We don’t ALL after tighten our belts. Just homeowners, speculators and debters. Is this such a bad thing considering the current state of the Nation?

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  • It isn’t government borrowing that has caused this inflation, it is the de-regulation of financial services, the explossion in dirivitives, lax global monetary policy,the failure to include HPI in inflation calculations, and the availability of MEW. In other words, a dirrect concequence of those wonderful market forces whose bedroom this man mastebates in.

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  • “In order for Mr Brown to maintain his programme of social engineering, he will have to tax those in work even more, and find new ways of stealthily taxing all of us.”

    What about interest rates and fixed costs as well (gas, fuel etc)

    Can anybody remember May 1997?

    Things………………………. can only get better

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  • Gordon Brown has stolen this countries future wealth to fund his and Tony’s personal ego trip. The people who will ultimately pay for this are todays under 30’s who are either mortgaged to the hilt or don’t have their own home. An awfull lot of people are saddled with huge debts that have slowly accumulated over the last 10 years of low interest rates and fiddled inflation figures. Brown’s economic miracle has been founded on consumer spending funded by borrowed money, most of todays 20 or 30 somethings parents would never have used the equity in their houses to fund spending on cars, holidays etc unfortunately an awfull lot of people have used this route to fund lifestyles they cannot afford. Rising interest rates and more expensive credit to fund the cost of IVA’s will be the the point of no return for many.

    Tighten your seatbelts were in for a bumpy ride.

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  • enuii,

    Could not say it better myself. This is all about the ‘self-actualisation’ of a couple of champagne socialists (fascists in disguise). Yesterday I heard Claire Short slating Bliar on Radio 4. She described Bliar’s “muddled thinking” on the middle east and how follwing the US into Iraq has destabilised the World even further, basically what a comlplete w8nker Bliar is.

    When you consider the catalogue of disasters over which this government has presided, cannot the economy be added to this litterny of woe?

    However, we do need to keep in mind that the credit bubble has been a phenomena in most countries following Basel and all will be in trouble now.

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  • enuii said..

    “most of todays 20 or 30 somethings parents would never have used the equity in their houses to fund spending on cars, holidays etc ”

    Yep, been there, done that. Bought a boat too! And funded it all with a deferred interest mortgage (something we’ve yet to see come back this time) so that my £100k mortgage in 1990 rose to £140k to finance boat, car, holidays etc. and then to £157k with rolled up interest by the time we sold in 1995. And so it was that we down-sized right at the point when we should have been up-sizing (with hindsight), but the relief of getting out of that situation was all that mattered by then. I was glad to take on a more modest mortgage and a more modest house to match and grateful not to have lost my shirt completely. Very grateful. It would only have taken something to go wrong in my life, such as work problems, to push us right over the edge.

    But I agree that others wont be so lucky this time round. Firstly there seem to be so many more doing it – back then it was unusual, but now it’s ‘de rigueur’. Then there’s the economy – this time round it seems to be far more dependent on borrowings and the credit boom – once that abates, recession seems likely, so many will lose their jobs. The last property crash came at a time when the economy was positioned to improve, which it did rapidly after we left the ERM, but after years of upswing, this time round there seems only one way for it to go.

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  • Beautiful!

    At last, a journo prepared to tell it how it is.
    I loved this bit:
    “But this is a man (Brown) whose borrowing addiction and spendaholic cravings are causing the broad supply of money in this country to rise by a whopping 14 per cent a year, way ahead of the combined rate of inflation plus growth. If Mr Brown were as clever as he thinks he is, he would remember the true definition of inflation as too much money chasing too few goods. That is exactly what we have now, and it is his fault.”

    The bloke is a danger to the stability of the UK.

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  • The Telegraph has published a series of articles portraying the sad reality of the UK economy. It is the lone voice in the wilderness and time will tell whether it is right or not (or rather exactly how right it was).

    Sadly, I have yet to see other newspapers print the same type of article. The Telegraph will not change the UK public’s view on its own. Things will only change when the Murdoch press gets in on the act as well. i.e. the Murdoch’s see they are not selling papers by printing the rose-tinted rubbish they have been peddling.

    We know what is likely to happen. Time to see which side which papers are on!

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  • At last people are seeing what teh miracle economy really is. Borrowing from the future to spend on consumer goods and increasing government revenue through VAT, stamp duty etc (and robbing pension funds). No long term improvements to infrastructure or productivity. Just a very large civil service and a whopping amount of debt!

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  • Any bets on a snap election when conman Brown gets his hands on the crown. Possible sequence of events:

    1) Plates kept spinning long enough in the basket case economy to keep the cracks hidden until his home and dry,

    2) a few sweeteners to con the electorate (but which will really make matters 10 times worse),

    3) Conman gets that much needed 3-4 point boost in the polls to give him working majority

    4) Snap election

    4) Economy by this time is well and truly f***cked

    5) Financial meltdown (interest rates – 8-9% +++)

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  • Just to put the current predicament into context, in December last year Rachel Lomax suggested that the MPC meet less often, and that she “.. thought that the economy didn’t need another rise interest rates at that stage.”.

    She is so out of step with the economy, she should be fired.

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