Tuesday, August 14, 2007

The politics and economics of a credit crunch.

The Resurgence of Risk – A Primer on the Developing Credit Crunch

Interesting, very long read! Which gives an overview of where we are and how we got there, suggesting, counter-intuitively for the sheeple, but spot on for HPC people, that governments aren't scared by inflation, but freaked out by deflation, but keep talking about inflation because they would't get away with it given that their remit to voters is to ensure that inflation does not deflate people's standard of living.

Posted by planning4acrash @ 10:40 PM (422 views)
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5 thoughts on “The politics and economics of a credit crunch.

  • This article is ill though out and has very little relevnace.

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  • Planning4acrash says:

    I bet you haven’t read it properly! Being at 4500 words, it could hardly be considered ill thought out, being about a credit crunch, it could hardly be considered irrelevant. David, if you want to slice in a few sidewinder shots from your “bank’ of knowledge on this subject then please enlighten us, actually add something to the argument for a change, instead of just reflecting to us what an ignorant man on the street would think, i.e. gut reaction and no knowledge.

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  • planning4acrash says:

    David, please add some argument to back up your assertions, because it looks from here like you didn’t, couldn’t read the article. You are acting like a little toddler who’s decided to throw his toys out of the pram.

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  • planning4acrash says:

    I bet you haven’t read it properly! Being at 4500 words, it could hardly be considered ill thought out, being about a credit crunch, it could hardly be considered irrelevant. David, if you want to slice in a few sidewinder shots from your “bank’ of knowledge on this subject then please enlighten us, actually add something to the argument for a change, instead of just reflecting to us what an ignorant man on the street would think, i.e. gut reaction and no knowledge.

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  • stillthinking says:

    Very interesting. Particularly the difference between credit expansion and printing money, or our situation and Zimbabwe, stating that cash(even paper cash) is real,as in real paper, but only credit is true vapour. There is one bit where the great depression gets explained as 750Billion credit attempting to turn into 5Billion cash, hence the drops in value to about 5% (yes I know already). What are the figures in the UK for credit vs. cash? Also when people say that BoE has increased the money supply by 13% a year, does that mean banks have borrowed (ie credit) from the BoE, or does it mean that they have actually printed 13% more cash? Anybody know?

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