Bobtailvw:
‘…Fair point but cheap money got us into this problem in the first place and we didnt have big inflation as a result…’
Eh? I recall house prices going up like hotel fines on a Monopoly board.
True enough but cheap money caused that rise in house prices but the base inflation was still low, house prices are falling now but inflation is still rising, we have yet to see the levels of inflation we had in the 70’s.
The only reason why you’re not actually ‘seeing’ the rate of inflation that we had in the 1970’s is because everyone is stupid enough to let them rig the true figures and to work for the same amount of mickey mouse money as before,while investors are subsidising the economy by investment rates that don’t match inflation let alone pay a bit more.
Which just means that instead of high 1970’s type inflation we’ve got a mixture of high (but artificially lower than the real rate) inflation and stagnation/recession all mixed together which is all the ingredients for the perfect economic storm that at the moment is just brewing up in Greece etc…
The problem with the money market is that they have got a new calculator now.
On the 6th May 1997, Dear Prudence freed the Bank of England from policy control and allowed it to set its own interest rates. From there things have plummeted us into a third world recession
Wheel Nut:
The problem with the money market is that they have got a new calculator now.
On the 6th May 1997, Dear Prudence freed the Bank of England from policy control and allowed it to set its own interest rates. From there things have plummeted us into a third world recession
It’s nothing to do with who sets the rate it’s wether it’s possible to to implement all of the real increases needed in incomes and interest rates now that they’ve handed the country’s wealth creating industrial strength to the global free (low wage) market economy.
There was a headline recently that said,probably rightly,that we need an increase in most income levels of 20% just to stand still.Which logically means that investment interest rates need to be at the same level,or more,to provide the required inflation protection in pensions and savings plus an extra amount on top required for growth and/or an income from those funds.
Assuming that the Bank of England did that where will the money to pay for it all come from unless you just print 20% more of the stuff to increase the money supply .In which case the value of that money drops by another 20 % of the value it is now .
All makes the 1970’s look like a storm in a teacup when you factor in some accurate figures and just proves where the policy of throwing open the country’s trade to global free market economics and wage restraint brought in by Healey,Thatcher,and Blair has got us.
Bobtailvw:
‘… cheap money caused that rise in house prices…’
Not only that but also poor housing provision since WW2 whereby no UK government foresaw the fall of the nuclear family, ie two parents and two kids and a need to manage the provision of good quality, low density accommodation fit for mature occupants once they get divorced. Mainland Europe don’t have this shortfall - but UK didn’t pick up on it and still seem to treat single dwellings with contempt.
It’s near on impossible to buy a one/two bed place with a garage that hasn’t been designed solely with a skint, newly-wed, midget-couple with only half a child in mind.
Hence, single, baby-boom divorcees are sucking-up three bed places instead - because those spec places - and upward - are when a house begins to be half acceptable to actually live in.
Bobtailvw:
‘… cheap money caused that rise in house prices…’
Not only that but also poor housing provision since WW2 whereby no UK government foresaw the fall of the nuclear family, ie two parents and two kids and a need to manage the provision of good quality, low density accommodation fit for mature occupants once they get divorced. Mainland Europe don’t have this shortfall - but UK didn’t pick up on it and still seem to treat single dwellings with contempt.
It’s near on impossible to buy a one/two bed place with a garage that hasn’t been designed solely with a skint, newly-wed, midget-couple with only half a child in mind.
Hence, single, baby-boom divorcees are sucking-up three bed places instead - because those spec places - and upward - are when a house begins to be half acceptable to actually live in.
It’s a myth that increasing the housing supply decreases costs you’ve only got to look at London’s growth into the surrounding counties and countryside over the years to see that.Mainland europe does’nt have such a big problem because in general the population density is’nt the same and the most overpopulated country in Europe still wants to add to the problem by allowing continuing immigration.
However there’s not much point in standing in front of an alter and going through all the bs marriage vows if they won’t stick to them and the problem of divorce would be a lot less if they made adultery illegal.
Make adultery illegal ?. That would work wouldn’t it, probably as well as prohibition did in the states. Maybe we should all become muslims and go for sharia !. One thing i am certain of is that no matter what laws you pass you will never stop people shagging people they shouldn’t.
Carryfast:
‘…It’s a myth that increasing the housing supply decreases costs you’ve only got to look at London’s growth into the surrounding counties and countryside over the years to see that … Mainland europe does’nt have such a big problem …’
Agreed.
However, the ‘buying to let’ housing phenomena exploded under Blair/Brown’s ‘no-more-boom-and-bust’ jurisdiction [sic]. Who didn’t see the pending tear-drops? I’m not Einstein but knew that it wouldn’t be healthy.
Perhaps the evidence of the UK’s societal greed to ‘get-rich-quick’ by playing with people’s housing needs has played a role from which we can learn?
Ex Haulier:
Make adultery illegal ?. That would work wouldn’t it, probably as well as prohibition did in the states. Maybe we should all become muslims and go for sharia !. One thing i am certain of is that no matter what laws you pass you will never stop people shagging people they shouldn’t.
You might not stop em all but there would probably be a lot more blokes shagging birds,that the law says they can’t,if they looked good enough,than there are now,if it was’nt illegal to do it.
Interesting to note, the countries who used EU grants and handouts to the full are the ones who are suffering now.
Id bet on Ireland surviving tho’…worth a punt?
Not really it’s just as it’s always been in that the countries with the most industrial strength are the ones with the most stable economies.Britain now probably is’nt much better off,per head of poulation,than Greece or Ireland beecause we’ve thrown away most of our wealth creating industries.
Was listening to the today program this morning and santandar are bringing there customer service centres back to the uk from India due to customer dissatisfaction.
So at least that’s more uk jobs but what was more interesting was the fact when they set up the call centres there it was about 60% cheaper whereas now due to rising costs in India the difference Is only around 30%
The euro is getting slammed today despite a rate rise yesterday. It’s because it looks like the Italian banks are heading for the brown and smelly stuff.
Ex Haulier:
The euro is getting slammed today despite a rate rise yesterday. It’s because it looks like the Italian banks are heading for the brown and smelly stuff.
Some say they’re going to devalue the Euro to match the old Lira.So it should be about 2,500 to the pound and then they’ll devalue the pound to match .But the Germans will then decide to only accept Marks which most of the clever ones have kept hidden under the floorboards and those that did’nt will all only want to be paid in Swiss Francs.
Ex Haulier:
The euro is getting slammed today despite a rate rise yesterday. It’s because it looks like the Italian banks are heading for the brown and smelly stuff.
Some say they’re going to devalue the Euro to match the old Lira.So it should be about 2,500 to the pound and then they’ll devalue the pound to match .But the Germans will then decide to only accept Marks which most of the clever ones have kept hidden under the floorboards and those that did’nt will all only want to be paid in Swiss Francs.
Its to be hoped the French don’t have the same idea then.
Banknotes of the current series as of euro changeover may be exchanged with the French central bank or services like GFC until 17 February 2012.
Ex Haulier:
The euro is getting slammed today despite a rate rise yesterday. It’s because it looks like the Italian banks are heading for the brown and smelly stuff.
Some say they’re going to devalue the Euro to match the old Lira.So it should be about 2,500 to the pound and then they’ll devalue the pound to match .But the Germans will then decide to only accept Marks which most of the clever ones have kept hidden under the floorboards and those that did’nt will all only want to be paid in Swiss Francs.
Its to be hoped the French don’t have the same idea then.
Banknotes of the current series as of euro changeover may be exchanged with the French central bank or services like GFC until 17 February 2012.
If they’ve got any sense they’ll tell their bank to stuff both the Euro and the FF and just accept CHF or DM for wages.
Interesting to note, the countries who used EU grants and handouts to the full are the ones who are suffering now.
Id bet on Ireland surviving tho’…worth a punt?
Not really it’s just as it’s always been in that the countries with the most industrial strength are the ones with the most stable economies.Britain now probably is’nt much better off,per head of poulation,than Greece or Ireland beecause we’ve thrown away most of our wealth creating industries.
Very true, no doubt Dennis will call us both idiots and disagree.
.In which case the value of that money drops by another 20 % of the value it is now 
