All part of a plan to force the Euro on the British public who,given a vote would never accept it,I believe Brown/Darling are deliberately bankruting the country and destroying sterling to eventually accept a fait accompli presented by whoever bails the government out,the way they are going buying up bankrupt banks,giving tax cuts and boosting public spending, and cutting interest rates by unheard of amounts,in between cuts they repeatedly state they will make further cuts to ensure the selling of the pound continues, we won’t have to wait too long.Sometime next year maybe 2009.
What they are doing is totally irresponsible bordering on madness,and there is noone to stop them.If this isn’t treason what is?
I doubt it. Its not madness what they’re doing its the only thing they can do, and i commend their proactive approach i just wish the idiots in the ECB would take a leaf out of their book before we’re all unemployed.
I’m impressed by the UK CB and long may they continue to cut rates, to zero. As in 0. And then if there’s still a problem they should go negative and spray the money all over the streets.
If you really do believe this than I’m afraid you know nothing about Economics.
If the devaluation of currency was a sure fire way of solving economic problems then why isn’t Zimbabwe an economic power house. If devaluing a currency by 10% is good, then devaluation of a currency by 90% must be even better, why not 99%…etc etc.
Lets take it one step further, if bigger and bigger economic stimulus packages are the best way to bring an economy out of recession, why doesn’t Alistair Darling not just send every household in the UK 1 million pounds. That should get spending going.
The Keynesian model only works when deficit spending is paid for by the surpluses accurred during the previous boom. This was not done by the UK, in fact during Gordon Browns supposed economic boom they continued to deficit spend.
They are now in the process of destroying the pound.
Given a choice, the Brits will never enter the euro. Ever. A popular vote, even if there were rioting on the streets, would still see them keep the £.
Not saying it’s right btw, but neither are the 3 m f*ckers here reading the Daily Mail every day
Why do some people automatically assume that the UK can just waltz into the Eurozone whenever they feel like it.
AFAIC I’d prefer to leave them out of it, they manufacturing base has been gutted, they have a bloated service economy such as banking that is in the process of shrinking and North sea oil reserves are reducing year on year. The standard of living in the UK will fall dramatically in the coming years. The only question is how fast. At the rate the government is destroying sterling it may happen sooner than most people think.
everybody is assuming Euroland will welcome engerland in its miserable state into the Euro. Why in gods name would Germany/France want the Brits now of all times?
Apologies OilKing, you must know way more about it than me.
Economics as we know it is out the window on this one. If you think that you can find a solution to this crisis by reading keynes theories/economics textbooks then good luck. The only solution is to inflate the debt away. By inflate i mean print and keep printing till the job is done. You mention zimbabwe which is gas and i love how you think that comparing a tin pot dictatorship with no industry or output whatsoever, to the ENTIRE WORLDS financial crisis is apt, but its not.
If the pound needs to decline in value then so be it. Question for you though and i’m keen to see your reply, which currencies would you go long on vs the pound??? The Euro? Hardly cause its as screwed as all the others. The dollar?? Nah thats completely screwed too. So whats the problem? All the currencies are completely screwed whether we like it or not so there’s nothing that will rally versus them, granted some may decline quicker that others but the end result will be common to all. DEVALUATION!!
Wait and see the countries that are proactive like the US and UK will be out of this mess far quicker than Europe.
They will print the money under special laws that will allow the worlds Central banks to resolve this crisis once and for all. It should not be taken on as debt by nations taxpayers. Just printed out of thin air under the rule of law.
It is their printing in the first place that got us into this mess. Have you forgotten what the FED going to 1% led too. Of course back at the time we were told that the FED had no other choice if we were to avoid a recession in 2001/2002.
Why do you imagine that more printing will get us out of it? Name any debtor country that has gotten out of a recession/depression by printing its way out of it.
You say the Euro is screwed. I admit it has its problems like many other economies but as a whole the EU still posted a surplus in exports in 2007. The same cannot be said for the UK and the USA which you rightly said are screwed.
The currencies that I would go long would be the following.
I don’t think “people” do. Mind you Jose is drumming up support. I expect many, many “enraged from Sussex” letters in the Mail …
NOK - Fine, but oil prices will hurt them
JPY - Why? only rallying cause of the carry trade unwinding and their exports are falling off a cliff
Renminbi - China is in as much trouble as the west, noone will be buying their trinkets anymore.
I agree that rates were held too low for too long but now we certainly do need low rates and they will be provided. Cant name a debtor country which has printed out but this is a global crisis with both debtor and creditor nations screwed so its going to happen regardless as they have no other policy tools to use.
Time will tell.
Time will tell indeed. My money is on the wealth = production formula.
The currencies of countries who produce and save will rise and the curriencies of nations who print themselves up a “stimilus” will fall.
We appear to be agreed that low interest rates and cheap money caused the crisis. But because of the crisis we “need” more cheap credit.
A junkie might “need” another fix or he will feel terrible pain. It dosen’t mean you are providing him with a solution by helping him out.
America shunned withdrawal symtoms in 2000 and now faces cold turkey of unimaginable proportions.
Ireland is not going down the stimilius road because we can’t afford to borrow enough and we have no slush fund (appart from the NPRF). If we still had a printing press we would be following the US and the UK down the road to oblivion.
Thank god we’re in the euro and subject to some sort of discipline.
The solution you’d like to see involves the complete collapse of the financial system globally and your money stuck where the sun don’t shine isn’t gonna help you.
In order for us to prevent a New Dark Age the like of which hasn’t been seen since the 14th Century, then i’m with the Junkies and I say PRINT!!
The choice is between a terrible depression and hyperinflation.
Neither is going to be nice but I belive that the latter will in the end be several orders of magnitude worse.
Gold is a good watchdog against the money printers no matter how they try to silence it.
One troy ounce of gold reached an all time high of £385.12GBP on 29 Aug 2007
Just over 12 months later £532.27.
Gordon Brown has signed sterling’s death warrant.
If your solution is to print then why not give each UK citizen a million pounds tomorrow. That should make the UK the richest country on earth.
Ah yes, another way of saying “This time it’s different.”
No, it’s not.
This time is no different because the same principles apply. The way they play out may be somewhat different, but the principles still apply. This time is essentially the same as the other times. It might be worse, but it’s not really different.
Buy some gold then and bring it down to Tescos when you need to buy food and see what they’ll say. The rule of law gives money value.
By printing I mean directing it to the banks without the govt having to take it on as debt, and if this is done by all the countries who are in trouble on a once off basis in equilibrium it may be seen as a solution to the nightmare we are in. The currencies wouldn’t move violently as it would be equally agreed and controlled.
I think its something that’ll happen sooner rather than later.
A Global Bank
Agreed - in the long run the hyperinflation would be much more destructive. I’m fairly relaxed though, I think TPTB are trying to engineer a hyperinflation, but I also think that no matter how many tricks and scams they try and pull they just won’t be able to manage it.
The sheer stupendous scale of the deflation in money, derivative, commodity and asset markets worldwide will just sneer at the paltry efforts of Central Banks to prime the pumps. They haven’t got a clue about the scale and power of the forces they unleashed with their 30 years of lunatic deregulation and WingNut casino culture.
Given that gold is a traditional inflation hedge, how does it perform in a sustained deflationary environment?
If there is a ‘big plan’, I do see this as the inevitable target and breaking Sterling’s resistance is just a necessary part. What would have been unthinkable and violently resisted a short while ago now seems like the only answer given the terrifying alternative scenarios. A nicely contrived strategy indeed… So, a poll for forehead or wrist for the ID implant?