"We can't afford another stimulus package" Mervyn King
Discussion
Colonial said:
Quick question. What part of rising house prices is the fault of any government?
And what is wrong with government spending at this point in time? Seems to be the most sensible path to go down. Simply hoarding money does absolutely nothing for anyone.
We don't have any money to hoard, we are in deficit, nothing in the bank and with massive debts to pay before we then spend anything on ourselves, you can forget hoarding, all that money we should have been hoarding was spent on the extra million public sector workers and wastage long ago.And what is wrong with government spending at this point in time? Seems to be the most sensible path to go down. Simply hoarding money does absolutely nothing for anyone.
And thats not even the scary bit, the money we don't have but are still spending and all the previously spent money has to be paid back to the people we borrowed from, plus the interest on the current and previously borrowed money also has to be paid back. We borrowed this money from foreigners, not Fred up the street, now the £ is crashing against the currency of the people we borrowed from, they get paid back in their currency, that means the 1000 Yuan worth £100 we borrowed is now only worth 600 Yuan, so we have to pay £140 worth of Yuan back, plus interest payments that just went up 40% too.
Nah, nothing wrong with just keep on spending really.
mark_davies said:
Dont get me wrong , the goverment is guilty of many things ( public spending and wate being at the top of the list among many others ) I just think they are the best solution for the current crissis thats all
i hope you're under 21 years old. go on, tell me livinstone was the saviour of london too.....
Sadly I fear there are many Mark's out there.
Who are very grateful for recent action as its saved there bacon.
The problem is because the government ran huge debts (i don't care what brown says, our government should be running balanced budgets (2003-07) not borrowing like there is no tomorrow) there is nothing left now when its really needed.
It makes me sick Brown going around lecturing the world on stimlus when he done very little in real terms. Hence the current battle between Darling/King vs Brown for stiumlus. Bit embrassing for Brown if he tours the world, arse licks Obama.
There is nothing left in the kitty, for this fools plans and we will spend the next 20 years paying for it. Public sector works should view right now as a golden time, as its going to get really bad from them soon as the taps get turned off, sorry "investment" gets turned off.
PS. If brown really wants to help he can remove red tape from business, this can be done without excess spending, just changes to laws, and will make a real difference to businesses.
Who are very grateful for recent action as its saved there bacon.
The problem is because the government ran huge debts (i don't care what brown says, our government should be running balanced budgets (2003-07) not borrowing like there is no tomorrow) there is nothing left now when its really needed.
It makes me sick Brown going around lecturing the world on stimlus when he done very little in real terms. Hence the current battle between Darling/King vs Brown for stiumlus. Bit embrassing for Brown if he tours the world, arse licks Obama.
There is nothing left in the kitty, for this fools plans and we will spend the next 20 years paying for it. Public sector works should view right now as a golden time, as its going to get really bad from them soon as the taps get turned off, sorry "investment" gets turned off.
PS. If brown really wants to help he can remove red tape from business, this can be done without excess spending, just changes to laws, and will make a real difference to businesses.
Martial Arts Man said:
http://business.timesonline.co.uk/tol/business/eco...
What can we read into this then chaps?
I think this is a move designed to enable Gordon to blame the BOE when things get worse
I think it's the opposite. The BoE is looking to ensure it can blame Gordon for all these fekc ups and knowing that it's going to get worse if the BoE (which is "independant" of course so will be "free" to do as it pleases) does as Brown wants.What can we read into this then chaps?
I think this is a move designed to enable Gordon to blame the BOE when things get worse
mark_davies said:
No , I like the fact that he is trying to help its citizens . Think your getting yourself confused back there , sort it out
BTW my mortgage is now 1penny , I should actually be paid money by the bank but their system doesnt compute or something
He's trying to help you, because you are in greater number than those of us with sensible finances.BTW my mortgage is now 1penny , I should actually be paid money by the bank but their system doesnt compute or something
Had you been someone with savings you would realise he's robbing people with savings to artificially benefit borrowers, and buy your vote come the next election.
My savings are now going out of the country rather than stay here. In effect I have stopped investing in GB and now invest in another country. If you can't see the problem down the road with everyone who has savings moving them away then you are very dim.
tamore said:
mark_davies said:
Dont get me wrong , the goverment is guilty of many things ( public spending and wate being at the top of the list among many others ) I just think they are the best solution for the current crissis thats all
i hope you're under 21 years old. go on, tell me livinstone was the saviour of london too.....
julian64 said:
mark_davies said:
No , I like the fact that he is trying to help its citizens . Think your getting yourself confused back there , sort it out
BTW my mortgage is now 1penny , I should actually be paid money by the bank but their system doesnt compute or something
He's trying to help you, because you are in greater number than those of us with sensible finances.BTW my mortgage is now 1penny , I should actually be paid money by the bank but their system doesnt compute or something
Had you been someone with savings you would realise he's robbing people with savings to artificially benefit borrowers, and buy your vote come the next election.
My savings are now going out of the country rather than stay here. In effect I have stopped investing in GB and now invest in another country. If you can't see the problem down the road with everyone who has savings moving them away then you are very dim.
Nail, Head.
Too many have solely based their lives around "I can afford those repayments" rather than looking at the total debt and exposure they were leaving themselves open to.
Human nature is such that 'have it now' has overwhelmed rational analysis.
Look at the debt per capita of the UK, look at where that debt is owed and the real repayment cost if sterling doesnt recover.
To describe the situation as scary would be a glib understatement....
mark_davies said:
Dont get me wrong , the goverment is guilty of many things ( public spending and wate being at the top of the list among many others ) I just think they are the best solution for the current crissis thats all
By the time of the next election much of the 'crises' will be over. We will be left with the problem of how to fix the busted public finances at a time of slow (if any growth).For the first election in a while we will have a fairly clear choice between the two main parties, consensus politics is dead.
How do we reduce the deficit
Option A cut non-jobs and benefits to the non-working classes
Option B Add further still to the tax burden.
Edited by JagLover on Wednesday 25th March 09:22
knut gets a savaging:mark_davies said:
Would you have wanted to let the banks go bankrupt and all assets taken by foreign investors ? Would you had money to buy off the debt from them investors so you could keep your home ?
Would you have wished to wait and let the thousands of people loose their house and then go into council accomodation paid by us in higher taxes ?
|Every way you look at it theres no good in boom and bust , we know the term and we choose the ignore it ,and i dont mean the goverment us the day to day poeple . We borrowed , we paid over the odds for homes , we bought audi , bmw's and ranger rovers .
And if its not you in person that borrowed like that , your mum , brother, uncle or friends did , would like to see them loose everything they have ?
I can see that NuLabia's 'Education, Education, Education' mantra has failed when even one of its own supporters is unable to write properly.Would you have wished to wait and let the thousands of people loose their house and then go into council accomodation paid by us in higher taxes ?
|Every way you look at it theres no good in boom and bust , we know the term and we choose the ignore it ,and i dont mean the goverment us the day to day poeple . We borrowed , we paid over the odds for homes , we bought audi , bmw's and ranger rovers .
And if its not you in person that borrowed like that , your mum , brother, uncle or friends did , would like to see them loose everything they have ?
Edited by mark_davies on Tuesday 24th March 22:50
Colonial said:
Quick question. What part of rising house prices is the fault of any government?
And what is wrong with government spending at this point in time? Seems to be the most sensible path to go down. Simply hoarding money does absolutely nothing for anyone.
They (he) stopped using RPIX and started using CPI to make his inflation targets look better. If rising house prices had meant rising inflation then he would surely have had to raise interest rates to stop it. If that wouldn't have put a brake on the housing market I don't know what would.And what is wrong with government spending at this point in time? Seems to be the most sensible path to go down. Simply hoarding money does absolutely nothing for anyone.
And what is wrong with government spending at this point in time? - They are spending money they don't have, they are trying to get out of the mess by using the same tactic that got us into it. Its not a question of hoarding money or spending it, there is no money. The tax take is going down and there isn't enough coming in to pay for our current commitments. Instead of reducing these commitments to a level that we can afford, they are adding to them and printing extra cash for the shortfall.
MX-Si said:
What a speech! Wonder if it will appear on the news channels....nonegreen said:
There is only one answer in the end. The moment Asda has no food on the shelves is the end of gummint of any recognisable kind. Therefore if we want to preserve the status quo we need to scrap the Royals and sack 95% of the civil service. Shoot the greens, scrap the WGBBC and start building roads and manufacturing goods double double quick. There really is no point in voting for public school failures regardless of their political shade. Tony Cammerblown, Gordon Blairon, Menzies Cammeron. It really does not matter, they would all fall in the 10th percentile when measured on the world stage of politicoes. This crappy little island is failing badly, we have squandered the oil money on unemployment benefits and NVQs. We continue to support 20 people for every job in the public sector. The civil service provides the wrong advice and strategy on every level of public policy. We have championed the rise of the workers revolutionery party in the form of the greens. Of course their goal of returning this land to the stone age is nicely being met by the current bunch of halfwitted morons who occupy the palace of Westminster or the knowlege free zone as I prefer to call it.
Where did the Royals come into Asda having no food? Im fairly sure we can level a few good gags and accusations in the directions of Phil the Greek, Charlie boy, Andy Pandy and the useless drop out one, but a lack of food at Asda? That's a new one.Sorry, I missed that link!
chris watton said:
MX-Si said:
What a speech! Wonder if it will appear on the news channels....Also, people need to look at the bigger picture here...and not just look at the current economic climate.
FACT is, the country's economy has been so poorely run over the last 10 years! We are in such a dire state because this Government has thrown away all the money we've givern it!!!
What have our taxes been used for? Where has it all gone? This is not a recent problem....the money has not been there for a while....we've only just realised its not there.
With the amount of taxes we pay, we should be better placed than most to deal with the global recession. But we arent, and you need to ask why!?
Labour may be taking action now to minimse the embarrasement coming next election, but it's too late!
Remember, they may be trying to help people now, but they are the reason we are in this mess in the first place! And before anyone says "actually the bankers blah blah blah...." No....the Government should have seen the gigantic cracks in the sector!! They should have regulated the sector much better. We've all been taken for a ride!!
I cant believe at this point in time that there are still people that fail to see how much of a fisting Labour has given us! Sooo many nonsensical policies rushed through, and such bad management of the country's finances!!!
And the LIES.......Oh My God, the LIES!!!!!! How could anyone trust anything that comes out of Labour's mouth again! (though to be fair, all Politicians lies through their teeth)
FACT is, the country's economy has been so poorely run over the last 10 years! We are in such a dire state because this Government has thrown away all the money we've givern it!!!
What have our taxes been used for? Where has it all gone? This is not a recent problem....the money has not been there for a while....we've only just realised its not there.
With the amount of taxes we pay, we should be better placed than most to deal with the global recession. But we arent, and you need to ask why!?
Labour may be taking action now to minimse the embarrasement coming next election, but it's too late!
Remember, they may be trying to help people now, but they are the reason we are in this mess in the first place! And before anyone says "actually the bankers blah blah blah...." No....the Government should have seen the gigantic cracks in the sector!! They should have regulated the sector much better. We've all been taken for a ride!!
I cant believe at this point in time that there are still people that fail to see how much of a fisting Labour has given us! Sooo many nonsensical policies rushed through, and such bad management of the country's finances!!!
And the LIES.......Oh My God, the LIES!!!!!! How could anyone trust anything that comes out of Labour's mouth again! (though to be fair, all Politicians lies through their teeth)
Nonegreen is right on the mark. In reality, Brown is left to choose between
1. Politically unacceptable cutbacks in public expenditure
2. Catastrophe now
3. Catastrophe later
He is choosing 3, and I don't think any other politician in the country given where we are would do any different. In the short term, things are going to ease, and Brown may even look good to your average Sun reader. Something might turn up. The IMF / EU / G20 / USofA or whoever might throw us a lifeline. or the Tories may win the election and be left holding the baby. But if it was this easy to just print money to get out of trouble everyone would do it, all the time. It can only result in the devaluation of the Pound, and we are left with what we can produce in the UK at affordable prices. A sterling crisis will result in ASDA having a lot less on its shelves. There is a big big reckoning comiong. As far as Chuck and Co and concerned, I'm sure they mean well, but we cannot go on preserving the British Empire for their exclusive use and enjoyment, which is what is happening just now.
Mervyn King is just your typical timid mandarin, who doesn't know how things are really going to turn out but sees the risk, and wants to put a marker down so he cannot be blamed later for not foreseeing the next major crisis. He doesn't want to be the next one to get his car torched, like Fred Goodwin.
1. Politically unacceptable cutbacks in public expenditure
2. Catastrophe now
3. Catastrophe later
He is choosing 3, and I don't think any other politician in the country given where we are would do any different. In the short term, things are going to ease, and Brown may even look good to your average Sun reader. Something might turn up. The IMF / EU / G20 / USofA or whoever might throw us a lifeline. or the Tories may win the election and be left holding the baby. But if it was this easy to just print money to get out of trouble everyone would do it, all the time. It can only result in the devaluation of the Pound, and we are left with what we can produce in the UK at affordable prices. A sterling crisis will result in ASDA having a lot less on its shelves. There is a big big reckoning comiong. As far as Chuck and Co and concerned, I'm sure they mean well, but we cannot go on preserving the British Empire for their exclusive use and enjoyment, which is what is happening just now.
Mervyn King is just your typical timid mandarin, who doesn't know how things are really going to turn out but sees the risk, and wants to put a marker down so he cannot be blamed later for not foreseeing the next major crisis. He doesn't want to be the next one to get his car torched, like Fred Goodwin.
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