Re: Get all cash out of the ba
Quote:
Originally Posted by
Littlefatwelshman
The loan has been approved thankfully, its just my nervousness of the current situation that is stopping me signing the little piece of paper. No idea why I am nervous, its just my lack of understanding the consequences of what is happening around the World and how that might impact on me (and logically) the business.
If all fails I will do what I usually do and a toss a coin....:o
LFT Alan Greenspan(former federal reserve chairman)was interviewed by the Telegraph Approx 2 years ago.(Report is on the internet)
He stated that interest rates may have to rise into double figures in the UK to stem inflation. Since then things have got worse and he recently said something like, he's never seen anything quite like it. So if you invest beware of what's to come.
The cause of the problems was initiated by the Labour government(hardly a capitalist supporter) in the late 1990s. It was able due to the growth in certain industries to create money and spend it. It also taxed us more, created more regulation and therefore expanded the public sector.
Whilst all this was going on the bank of England kept interest rates low. This encouraged borrowing and discouraged saving. The future of a country-it's stock seed and investment, is dependent on savings and these were being siphoned off by the aforementioned interest rates and government borrowing.
So huge sums of money were being pumped from the Bank of England into banking institutions at low interest rates and this caused a huge speculative boom. Banks had at their disposal almost limitless amounts of cash that they were inclined to lend. They then created all sorts of exotic loans etc that hardly anybody understood.
All this extra money flooded the market causing house prices to spiral. Suddenly though the Bank of England realised that savings were very low and prices were going up. So they raised interest rates. This caused people to default on loans etc. When the banks realised that loans had been made recklessly they stopped lending to one another. But you see they had to,because they were running out of money due to a lack of savings and also because the Bank of England had stopped the cash flow(which they had to).
So the ultimate fault lies with the government and not capitalism. If the pound was tied to gold and not Gordon Brown's whim, he couldn't have created paper reserves, and this in turn would have created more cautious lending by the banks.
So there you are and there you have it.
Re: Get all cash out of the ba
Spot on summary as I understand it CL. Frankly, I think we would have ended up here whatever government was in power. Its evolution of economic theory. Sometimes, the theory turns out bad. Hopefully, the economists will have learnt a thing or two. My hope is that our 'nation of shopkeepers' is not harmed by all this.
Re: Get all cash out of the ba
RR - just get some out of Ady's account like Margarine did;).
Re: Get all cash out of the ba
Quote:
Originally Posted by
Grouse
RR - just get some out of Ady's account like Margarine did;).
It only takes incoming deposits :)
Re: Get all cash out of the ba
Quote:
Originally Posted by
Wheeze
Spot on summary as I understand it CL. Frankly, I think we would have ended up here whatever government was in power. Its evolution of economic theory. Sometimes, the theory turns out bad. Hopefully, the economists will have learnt a thing or two. My hope is that our 'nation of shopkeepers' is not harmed by all this.
It's not a spot on summary at all as it doesn't (I'll just have another look) it doesn't mention sub prime loans, the rise of China, the development of investment banking or all the other crepe meshed together in the mind boggling matrix that is globalised banking. How can Gordon Brown be responsible for the international balls up that's going down right now? How can anyone think this is due to mere domestic policy?
As a side issue: the Labour rebels who are demanding a leadership election because there's a 20% slide in their party's popularity need to grow up. Do they think that David Milliband is going to pull us out of this before the next election? Or Ed Balls? I don't think so! Or how about David Cameron? Would the great Thatcher be able to do something about it by cutting off benefits and closing some more manufacturing down.... Perhaps!
No only joking:D
Somebody else used the word "steady". A bit of patience and maybe not having it all and now for a while is what we need.
We're gonna get it that's for sure.
Re: Get all cash out of the ba
Quote:
Originally Posted by
Wheeze
Spot on summary as I understand it CL. Frankly, I think we would have ended up here whatever government was in power. Its evolution of economic theory. Sometimes, the theory turns out bad. Hopefully, the economists will have learnt a thing or two. My hope is that our 'nation of shopkeepers' is not harmed by all this.
Wheeze if the pound was tied legally to a certain amount of gold which the government was forbidden to interfere with, then they couldn't borrow money.
They could still tax us, but as income tax is reduced during difficult times the government would be forced through necessity to lower taxes I.e. cut the funding for the welfare state.
What's happening today didn't have to happen, but it did in relation to the type of government and opposition parties we have in this country.
Re: Get all cash out of the ba
Going off at a tangent (as usual) I think the Gordon Brown problem would be best dealt with in the way that the ancient democratic Athenians used to do it; they annually held voting, by scribbling on pot shards (called ostraka), if they felt that a politician had got too big for his boots (or in Gordon's case too boring and dull) - so long as sufficient votes were made the "winner" would be ostracised and forced to go abroad for 10 years :D. I think Gordon just might win this vote by a landslide.
Re: Get all cash out of the ba
Quote:
Originally Posted by
christopher leigh
What's happening today didn't have to happen, but it did in relation to the type of government and opposition parties we have in this country.
Exactly - it didn't have to happen.
I strongly believe in the free market, but I think that some of these people in Government, Bank of England, FSA, The City etc have behaved extremely irresponsibly with our money - whether our money is our savings or our taxes.
I mean, spread betting by financial insitutions - madness.
The calibre generally of people at the top in these institutions has gone down immensely in the last 20 years since Maggie went. The old style politicians, love them or loath them - at least you new what they stood for.
Most of them now are not fit to run a Whelk Stall.
How can you trust Govt that has a minister like Mandy that cons us, resigns, comes back all forgiven, cons us, resigns, then ends up on double the salary in charge effectively of all the EU trade.
I think there is more pain to come yet - and looking at the polls now - we have to hope that Cameron has more about him than we have seen so far.
Labour are stuffed - perhaps permanantly now - and for those that think it is not their fault - they sold the gold at a knock down price - robbed the best funded private pension funds in the world - spent the money on New Deal which would have been cheaper giving all the New Dealers £20K in the hand!
Taxed us to the hilt and frittered it all away.
Need I go on?
They should certainly be in a better position to deal with this than they are - and Blair should really cop for a lot of this as it was created under his leadership.
We're going to Hell in a handcart:eek:
Re: Get all cash out of the ba
Quote:
Originally Posted by
Stolly
.......- so long as sufficient votes were made the "winner" would be ostracised and forced to go abroad for 10 years :D. I think Gordon just might win this vote by a landslide.
Can we send him to Helmand Province on the front line do you think?
Re: Get all cash out of the ba
Quote:
Originally Posted by
Guick Dotto
It's not a spot on summary at all as it doesn't (I'll just have another look) it doesn't mention sub prime loans, the rise of China, the development of investment banking or all the other crepe meshed together in the mind boggling matrix that is globalised banking. How can Gordon Brown be responsible for the international balls up that's going down right now? How can anyone think this is due to mere domestic policy?
As a side issue: the Labour rebels who are demanding a leadership election because there's a 20% slide in their party's popularity need to grow up. Do they think that David Milliband is going to pull us out of this before the next election? Or Ed Balls? I don't think so! Or how about David Cameron? Would the great Thatcher be able to do something about it by cutting off benefits and closing some more manufacturing down.... Perhaps!
No only joking:D
Somebody else used the word "steady". A bit of patience and maybe not having it all and now for a while is what we need.
We're gonna get it that's for sure.
I meant Sub Prime and other credit instruments I.e. 'investment banking...' when I mentioned exotic loans. China is irrelevant to the economic problems in the world, because we have very little manufacturing base in Britain and the goods demanded have to be produced somewhere.
Tony Blair and Gordon Brown are responsible for the crisis in this country. Just like Mr Bush is responsible for the woes of America. Blair and Brown took us into a war in which we had nothing to gain, and which they have borrowed heavily to fund.
They've also given away billions in foreign aid to primitive cavemen(money we desperately need now) and increased the political correctness nonsense we're bombarded with every day.
If any one wants to assess the nature of the labour party, go back approx 10 years. To the time when greengrocers were having their property confiscated for selling in pounds and ounces. Did the labour party step in and stop it........of course not, they sent their lackeys over to implement it.
The politicians in this country are useless. The best is the chap in charge of the UKIP. Even then I don't agree with his position on most things.
P.S This post is dedicated to all greengrocers who had their scales confiscated.
