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davieG

Quantitative Easing?

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Posted
I have a cunning plan.... i'm going to win £85m on euromillions and feck off somewhere else.

You git! I was going to win that. :angry:

Posted
I have a cunning plan.... i'm going to win £85m on euromillions and feck off somewhere else.
You git! I was going to win that. :angry:

You are both wrong. Sir Fynwy is going to win it. I need the money to fund my post-grad studies.

:doh:

Posted
I have a cunning plan.... i'm going to win £85m on euromillions and feck off somewhere else.

I think you can only buy about 20 euros with that.

Posted
When the jackpot gets to 114.5 million it's positive EV, you can't afford not to play!

Well if no one else is going to pay some respects to this comment then I will.

Maths geek till I die.

Posted

Money as Debt is a great little film that explains it perfectly for anyone who can be arsed to watch it. Here's part 1 :

Posted

When countries start injecting cash into the economy out of thin air it strikes me as basically devaluing the £. And if it leads to inflation as a result, that's exactly what it will be.

The UK is already way past the safe guidelines laid down by the IMF for responsible borrowing in relation to GDP. Just consider this if you have any doubts about the mess Gordon Brown has got this country into...

http://www.spectator.co.uk/coffeehouse/307...ains-debt.thtml

And nothing on the horizon suggests to me that we will rein those debts back.

How can it happen?

So many businesses are failing with the consequent effect on taxation.

So many properties are standing empty and not drawing rents.

Another million (at least) are soon to lose their jobs and will likely have to claim benefit of one kind or another and therefore will not, as previously, pay income tax into the economy?

Millions are being wasted in benefits, wars, paying interest every day of every week.

The country now has half the gold it used to have to go up if the value of money goes down.

The population is continuing to grow and, with few jobs likely to be available, many of those mouths will only add to the nation's financial predicament.

I'm no economist but I do run a small business. And I know that if you continue spending what you haven't got and increasing the burden of your debt at the same time as your assets are reducing (property values are plummeting, we're increasingly reliant on energy from others and so many national assets have already disappeared or soon will do), then you're quickly on the way to going broke.

And that, to my mind, is the path our government has pointed us down.

Yes, there may be a perceived economic improvement with the latest £75bn cash injection and as much to follow if necessary. But it's all a wild, wild shot in the dark. And not one that I think will work unfortunately.

Quantitive Easing? Or Quack-cure Economics?

Posted

It's not actually THAT much money. Inflation will take a while to come about, at the minute we're on the verge of deflation, which is far worse. Good for the banks though. By the time inflation kicks in the interest rates will have to go back up to curb it, increasing the amount of saving, increasing bank liquidity further.

Posted
By the time inflation kicks in the interest rates will have to go back up to curb it, increasing the amount of saving, increasing bank liquidity further.

Exactly, anyone with a mortgage who can afford to pay more should do so now. In 2 years time interest rates could be 7or 8%.

Posted
So as a country we go into more debt in order to help individuals go into more debt, I can't see how that helps.

Oh well at least Beckham is staying at AC Milan until the end of the season, that's pretty important and should help. :whistle:

Because they can use that extra cash in the system to 'HOPEFULLY' reduce debt in general, by lending more.

Consumers can use those extra loans to pay off all their debt, then obviously they would have to pay back the loan, but that would probably be at significantly lower interest rates, therefore lower monthly payments to pay, they can afford it and pay it off.

Some will be contracted to pay back their debts at say 3% interest+ what it was only months ago, even though the current interest rates are only 0.5%, unbelieveably low.

I feel sorry for people who have not got themselves into debt, saved all their lives and not been stupid by buying things they can't afford, and now are retired and having to dig in to their savings to get by, rather than just using the interest they earn.

Meanwhile people like Fred the Shred are getting HUGE HUGE pensions.

Its a fooking disgrace the lot of it, it stinks the entire situation.

Crooks i would call them, they lose billions of pounds of our money yet are able to leave their jobs with millions in their bank accounts and massive pensions.

Its shit the lot of it.

Posted
Quantitive Easing is like having a shit - you dump as much as you can in the certain knowledge that before long, it will all be flushed away.

Isn't that toxic debt :whistle:

Posted
Quantitive Easing is like having a shit - you dump as much as you can in the certain knowledge that before long, it will all be flushed away.

So we are kind of detoxing? :unsure:

Detoxing is painful and we may well come out in pimples and stuff. :whistle:

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