Tuesday, December 3, 2013

Credit controls

Ron Paul Rages "'Easy' Money Causes Hard Times"

"If the demand for lower interest rates is great enough and not accompanied by a call for sound currency — gold — the politicians will be “forced” to accommodate the demand by means of massive inflation of the money supply with strict credit controls and credit allocation." This stage has started to happen in the UK, there are now a number of programmes related to central bank or government allocation of credit. This line is at the end of Ron Pauls speech but I think what is unstated that these programmes and their unintended consequences require a continuous "whack a mole game" style of additional controls. As usual we will see how things turn out. UK record breaking sustainable lift off !.. growth is around 1%...

Posted by stillthinking @ 05:37 AM (3731 views)
Please complete the required fields.

2 thoughts on “Credit controls

  • stillthinking says:

    Also, credit controls leak. If your parents are sitting on 50K and looking at miserly imposed bank rates whittling it away, if they have kids it makes sense to lend directly. Credit controls are only applicable to the intermediaries, banks.

    Please complete the required fields.

  • Problem is that high taxation and excess government borrowing plus policies that shift capital in directions like help to buy, all these manipulations are reducing people’s willingness to borrow. People are tired of borrowing money to shovel it into bubbles. What the economy needs is government to get out of the role of central planning. Let things drop for a year or two. Find true price discovery and once value is clear and obvious again people will begin borrowing, spending and saving, i.e. behaving like normal, unrestricted human beings.

    Please complete the required fields.

Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>