the addict Posted December 9, 2011 Report Share Posted December 9, 2011 Greg, as Airwaves said, now is as good a time to buy that digger if you're sure you have work for it. With the endless printing of money going on globally, it may be twice the price this time next year. Policy of the day, if you can't create growth, print, if that doesn't work, print more. Quote Link to comment Share on other sites More sharing options...
the addict Posted December 9, 2011 Report Share Posted December 9, 2011 Quantitative Easing, some of you may have heard this term on the news over the past three years, many will have switched off as soon as it was mentioned. If you listened though, its sold as asset purchase to boost economic growth, a good thing then I hear you say? Well, what's Quantitative Easing?, its the Central Bank (BoE) creating money via magic or rather pushing a few computer buttons and giving it to the Banks to buy the Gilts they bought previously. The Bank then gets new clean money, and sells the Bonds to the BoE, it also buys up Gilts elsewhere helping government. "For every action there is always an equal and opposite reaction"! they reaction is QE causes the money supply to increase, devaluing all of the money that existed before QE, that money in your wallet or Bank/savings account, little by little worth less than it was before. You see prices rising and are told it is the commodity markets pushing prices up and greedy companies, what it really is, is you now need more units of money to buy the same things you did before, the price has not gone up as such, Central Banks have taxed you secretly via inflation they caused via stimulus. Quote Link to comment Share on other sites More sharing options...
airwave Posted December 9, 2011 Report Share Posted December 9, 2011 American general info of taxes in the 1920's isnt really applicable to Britan a century later is it? A "survey" of 3100 worldwide by the hong kong and shanghi bank is hardly evidence is it? Despite which side of politics anyone is on neither the last labour government or the current co-alition agree with your viewpoint which considering they have the best and most capable economists between them kind of undermines your ideas on taxes. Nigel, I'm trying, really. If you actually _read_ what I posted, and / or do a bit of your own research, you'll find that people are willing to pay, about, 20% tax. globally, any creed, colour, religions, caste, or football team followed, 20% is it. You also find, if you , *cof* actually _read_ what I posted up, that the data comes right up to Reagans time (mid 80's) If you look at the way the UK taxes corporations and companies, they roughly aim at taking 20% of profit, which is generally agreed as fair (well, paid if not actually fair) If you see the way the gubmint is attempting t rip the bahookey clean out of emplyees, you _should_ come to the conclusion that this is "just not right" and know, it's not going to work. When gubmints expect the great unwashed to pay more than this nominal 20% figure, things give. people just won't do it. now I accept that there are many many people on PAYE who have no say in the matter, but, there are equally, many many more who do, and just _won't_ (as you so succinctly pointed out) The issue is not what should gubmints get the people to pay for, it is more what can the gubmint do with 20% of GDP as history has proven, that is all they are going to get. The "Survey" you poo poo was of the HSBC "premier" account holders, you need a minimum of USD $100k in funds to get that account. if you gear that number, and that minimum deposit, those 31,000 people could fund Greece. If they did, we wouldn't have the current keffufle (which, I fear, is about to get spectacularly worse) However, they have more sense and won't. Quote Link to comment Share on other sites More sharing options...
the addict Posted December 9, 2011 Report Share Posted December 9, 2011 Getting back to Monty's original post, There will be no growth, I can see nothing on the horizon to create it non artificially, zilch!! unless there's a sudden world changing invention or discovery. There hasn't been real growth for at least ten years, the only growth we have seen is from the massive rise in money supply world wide artificially creating it. There are estimates that during the 2008 crash, 50 trillion Dollars was wiped off the globe, the Central Banks switched on the presses to put it back in as quickly as possible causing the inflation we see today. If Central Banks hadn't printed money (still doing it by the Billions today) what would the World look like now? doesn't bear thinking about. They did what they had to do quickly to sort the problem (they should have spotted it coming in at least 2005 though), what they should have done soon after was to totally change the system so it wouldn't happen again. They didn't and its happening again, although much much worse. The global monetary system only works with constant growth, when growth disappears, the whole system comes to a grinding halt as we see today. Ever asked yourself why we have to have growth in an economy? why is it so important? why is 2% growth great news when 0.1% is catastrophic? The answer is the way money is created in the first place, nothing more, the system we use has in my view come to the inevitable end of its term (thank God) and we have to turn to a different way before its last breath cripples everything. Quote Link to comment Share on other sites More sharing options...
bilc0 Posted December 9, 2011 Report Share Posted December 9, 2011 There hasn't been real growth for at least ten years, Exactly the point i was trying to make, im no better off or worse off in 2011 than i was 10 years ago and inbetween. It was only 5 years ago Britain made there last payment of debt to the USA for WW2. As my accountant tells me once a year "If you can pay your bills your doing well". Quote Link to comment Share on other sites More sharing options...
johnnyboxer Posted December 9, 2011 Report Share Posted December 9, 2011 As my accountant tells me once a year "If you can pay your bills your doing well". Mine too, then he presents his bill Quote Link to comment Share on other sites More sharing options...
the addict Posted December 9, 2011 Report Share Posted December 9, 2011 Exactly the point i was trying to make, im no better off or worse off in 2011 than i was 10 years ago and inbetween. It was only 5 years ago Britain made there last payment of debt to the USA for WW2. As my accountant tells me once a year "If you can pay your bills your doing well". The standard of living is going backwards by the day, could you have said that in 2007 though? many could of said then, their standard of living has increased dramatically in those ten years. All false though, wiped out in the next 4 years and going back and back all the time, the ability to feel wealthier has been removed, most cannot borrow to increase income today? as they did previously. What you earn is what you earn, you struggle to earn more by borrowing to increase it. The future looks like depression or massive inflation, I can't see much else to be honest, both eyewatering bad outcomes. Quote Link to comment Share on other sites More sharing options...
b40rt Posted December 9, 2011 Report Share Posted December 9, 2011 What you earn is what you earn, you struggle to earn more by borrowing to increase it. This may be a naive statement, but has the above not always been true ? Undoubtedly there are a few who can manipulate the system, but ultimately the bubble bursts. Simples Quote Link to comment Share on other sites More sharing options...
bilc0 Posted December 9, 2011 Report Share Posted December 9, 2011 The standard of living is going backwards by the day, could you have said that in 2007 though? many could of said then, their standard of living has increased dramatically in those ten years. To be fair cracks were starting to show coming into 2006/2007. Why do you think Blair legged it and left brown holding the baby, That bugger knew exactly what was coming. Quote Link to comment Share on other sites More sharing options...
the addict Posted December 9, 2011 Report Share Posted December 9, 2011 Yes, but not on the scale we have seen in the past ten years, we've become used to easy money increasing our standard of living, those days are diminishing quickly and we don't like it much, many have no understanding of why. Quote Link to comment Share on other sites More sharing options...
b40rt Posted December 9, 2011 Report Share Posted December 9, 2011 To be fair cracks were starting to show coming into 2006/2007. Why do you think Blair legged it and left brown holding the baby, That bugger knew exactly what was coming. Blair, the new Antichrist. Quote Link to comment Share on other sites More sharing options...
the addict Posted December 9, 2011 Report Share Posted December 9, 2011 Bilco, lol, yes, he may well be a **** but what a time to get out, you have to admire him for that. I felt the time was up in 2007 when I heard the introduction of a mortgage you took on for 60 years, your children would take on the final payments? I remember saying to my wife, this is going to end very soon. I'd like to know at what stage the Central Banks actually realised things were heading to disaster? 04/05 I expect, by which time it was too late or many of their friends were making so much money they coudn't/dare stop it. Quote Link to comment Share on other sites More sharing options...
ishy Posted December 10, 2011 Report Share Posted December 10, 2011 Reading the whole topic, everything is in such a mess because the Bankers and political leaders made us spend more than we earn, take out that adjustable mortgage that grew to be more than our income after a few years and sent all our jobs overseas. Who voted them in, who signed the mortgage papers, who bought the imported item over the domestic, is it true Blackpool had a great season because vacationers couldn't afford to fly to warmer climes this year. A lot of this debt is self inflicted and a personal choice, people signed away more than they could afford, I'm one of seven kid's and my parents could raise us on way less income than people have today, if we couldn't afford it we had to do without. It can be fixed a lot faster than you think, it just takes effort, an imported product is way more expensive if it costs a domestic worker their job. Quote Link to comment Share on other sites More sharing options...
monty_jon Posted December 10, 2011 Author Report Share Posted December 10, 2011 Didn Quote Link to comment Share on other sites More sharing options...
the addict Posted December 10, 2011 Report Share Posted December 10, 2011 Monty, its a depression not a recession, although they'll tell you we still have growth so not even recession. From what I see from people I know, Retail is well down, and those selling are discounting (sure sign of a depression) construction/building, although some are flat out, others feck all to do. Banking's doing well, I really should have gone into that years ago, pretty much no lose career. Quote Link to comment Share on other sites More sharing options...
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