Tuesday, March 3, 2009

NuLabor says thanks to savers

Bank of England set to pump cash into economy to avoid deflation

"The Bank of England is set this week to begin “printing money” in a ground-breaking move that will mark its most forceful action yet to curb the slump in the economy. The Bank’s Monetary Policy Committee is expected to act on Thursday, as soon as it is given a final green light from Alistair Darling to begin the so-called quantitative easing." In fairness, I accept that this might be the least worst option avavilable to the government now.

Posted by quiet guy @ 08:31 AM (1450 views)
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23 thoughts on “NuLabor says thanks to savers

  • This was a done deal months ago. Waiting for green light from Darling. Give me a break!

    We will pay good money in the future for fiat. Yes, it’s a done deal.

    What’s more is that we will pay interest when we want to borrow that same money. CRIMINAL?

    The UK is eating itself from within but the fat has all gone. IMHO.

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  • matt_the_hat says:

    Right then here goes it…

    The 1st stage (before easter) of economic collapse in Europe will be the default on debt by some Eastern European country (Hungary, Ukraine, etc) , followed in rapid succession by the others that are teetering on the edge as capital via foreign direct investment etc fleas the country.

    Then a member will leave (before the summer) the Euro (Greece, Ireland, Spain) which will be followed by a short delay whilst other members review the ramifications for that country, this will then precipitate the departure of the rest (Greece, Ireland, Spain, Italy).

    The Euro project collapse will initially give a boost to Sterling as a safe haven, leading to one years ‘recovery’. Labour will win a fourth term on the back of GB ‘masterful’ handling of the economic crises, however like the Wiemar Republic of Germany the printing presses will not be allowed to be turned off leading to hyperinflation (same as house price boom was not stopped). Sterling will then be abandoned by the financiers and with the imbalance of the UK industry (financial services dodging tax) the UK will lose its position in the G8 in all but name and rank amongst the likes of Sweden Beligum Norway, with unproductive resource allocation (surveillance state, nuclear weapons, social security – boomers) eventually leading to bankruptcy and IMF bailouts by 2015.

    Any more optimistic predictions are most welcome!

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  • @2. matt_the_hat

    You seem to have left the economic collapse of the States, Japan and China out of the, erm, equation.

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  • sold 2 rent 1 says:

    The deflationist view is heading into an exhaustion stage by mid April. The Armstrong turning point on 19 April is highly likely to be where a deflation outlook turns to an inflation one.

    This will be an unbelievable time to pick up any commodity; especially oil, gold and silver and their matching stocks.
    I am not pumping gold here. All the different models I follow are saying the same thing. Get out of fiat currency preferably in April and certainly by October 2009.

    If you don’t want to buy gold, silver or oil that is fine. Buy a car. Buy a house. Buy white goods (Russians did when the Soviet Union collapsed). Buy tinned food and 20kg bas of rice. GBP is likely to be worth a tiny fraction of its value in 18 months.

    Do your own research.

    Buying a house is not such a bad idea. As long as you can keep up the repayment for 2 years, the financial system could collapse totally and you get to keep it. Sounds crazy but these are crazy times we live in.

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  • matt_the_hat says:

    There will be none – the states is very good at pressing the ‘reset button’, cheap chinese imports are always needed and Japan has never recovered but stabilized. The shift of wealth from the West to East will continue, just with a little bunny hop over eastern europe.

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  • I can’t figure out why such a small change in economic activity (say 5% less GDP) has created such a fuss. There are plenty of boring businesses in the real economy doing ok (including my own), so I am quite puzzled.

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  • 5. matt_the_hat said… There will be none – the states is very good at pressing the ‘reset button’, cheap chinese imports are always needed and Japan has never recovered but stabilized. The shift of wealth from the West to East will continue, just with a little bunny hop over eastern europe.

    With respect, I think you’re ‘bunny-hopping’ over the scale of the problem as seen from a global perspective. Besides, when did the USA ever press the reset button?

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  • cyril,

    5% is too much to take for a country that is funded by debt. It means the true loss is 5% of something we couldn’t afford to buy in the first place plus interest on something we have no hope of paying back if asset prices fall. It is bankruptcy.

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  • What deflation? Using the measure the government wanted to use when house prices were bubbling, inflation is still 3 pct. The only thing that is deflating is house prices. And the truth is the whole economic policy of this country is geared to generating fairy gold in the housing market.

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  • @devo – you seem to have left out the collapse of planet earth ! – I’m now begining to understand the following :-

    Russian billlionaire Roman Abramovich gave his model girlfriend Daria Zhukova the moon, or at least 100 acres of it. The Chelsea Soccer Club owner made the purchase through the Lunar Embassy, which sell deeds to prime Lunar, Martian, and Mercurian properties. The over-the-moon couple will be neighbors with former U.S. President Jimmy Carter, and actors John Travolta and Tom Cruise.

    Given Abramovich’s recent financial troubles, it is not surprising that he is scaling back on his extravagant spending. The billionaire dropped just over $2,508 for the plot, as an acre costs only $22.49, plus the company charges $12.95 shipping for every 5 deeds. Given his predilection for dropping lots of cash, this is pocket rubles. But still.

    Here are the details via CrunchGear:

    “Yes, the Russian billionaire “bought” the land, which is located between 20-24°S latitude and 30-34°W longitude up there”

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  • happyrenter says:

    @4, so when did ‘buy white goods’ replace cosmic Mayan awareness of consciousness and the new world order psychobable?

    You expect a power grid to still be there after the collapse of society into tinned food and rice?

    Others may have said it already, it was great for a while, but now the http://www.housepricecrash.co.uk ethos seems to have passed ‘peak value’ and is heading down the same declining path as house prices – bye bye

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  • @happyrenter – you’re right that HPC seems to have lost its way a bit since the collapse of civilisation as we know it, and it is getting a bit depressing. I don’t mind the odd wierd posting but maybe the webmaster should filter out some of the slighly off-topic news items that encourage people from, er, the fringes, shall we say.

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  • sold 2 rent 1 says:

    happyrenter,

    “You expect a power grid to still be there after the collapse of society”

    Nope. With any luck we should all have our own personal dark/free energy generators.

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  • matt_the_hat says:

    I maybe wrong but I thought this site was created on the back of massive HPI, now we understand the causes of this can we not talk about the implications or shall we adopt the same stifling of free speech that censored people from saying anything other than rising house prices were a good thing for humanity – you guys need to look at the bigger picture

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  • matt_the_hat says:

    BTW power still flowed from the power stations (built on IMF money) in the Philippines but that didn’t stop them paying 50% of GDP in interest payments to the IMF – that’s the future I think the UK is looking at

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  • mountain goat says:

    S2R1 – “The deflationist view is heading into an exhaustion stage by mid April.”

    Bob Prechter recons “Deflation should continue until the stock market bottoms in wave (a), likely sometime in 2011-2016”.

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  • The usual end of a Labour government………………………the printing presses.

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  • sold 2 rent 1 says:

    mountain goat,

    We will have deflation but not until we have seen the commodity bubble reach its final peak in April 2010.
    Unlike the 1930s the USD is going to get battered. This will cause the inflation.

    The money lending will continue but to hedge fund managers buying commodities, not to homeowners

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  • 16. hpwatcher said… The usual end of a Labour government………………………the printing presses.

    Party politics doesn’t really come in to this except in deciding where to apportion the blame.

    What do the Conservatives have to say on the subject of QE?

    Reply
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  • 17. sold 2 rent 1 said… The money lending will continue but to hedge fund managers buying commodities, not to homeowners.

    I disagree. I think the money lending will get back to the stage where anyone who can fog a mirror is eligible for a loan. Either that or they’ll have to think of a more innovative way of getting money back into people’s hands. So innovative that I can’t think what it might be.

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  • 11. cyril

    It’s all wierd but keep telling yourself this is all normal.
    People like you are getting fewer by the day. FRINGES? LOL.

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  • 12. sold 2 rent 1 said…”With any luck we should all have our own personal dark/free energy generators.”

    Great, I’ll use one to power my starship. It’s dilithium crystals are running a bit low after my last trip to the planet Zorb.

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  • shining wit says:

    This place is definitely more entertaining than the current rubbish on TV.

    “what did you do today daddy”
    “I discussed the end of civilisation on House Price Crash”

    Funnier than Robert Unwin on X factor – Keep up the good work

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