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Liarbours answer to the recession.....print more money!

#1
George Osborne, the Shadow Chancellor, said: “The very fact that the Treasury is speculating about printing money shows that Gordon Brown has led Britain to the brink of bankruptcy.

“Printing money is the last resort of desperate governments when all other policies have failed. It can’t be ruled out as a last resort but risks losing control of inflation and all the economic problems that high inflation brings. And to float the idea carelessly is irresponsible in the extreme as it risks losing the confidence of international markets.”
Tough times ahead, especially with the Pound at parity with the Euro.

Times article.
 
#2
http://news.bbc.co.uk/1/hi/business/7509715.stm


Good idea Gordon. let's print loads of money, then everyone can be millionaires.

Zimbabwe(United Kingdom), once one of the richest countries in Africa(Europe), has descended into economic chaos largely blamed on the policies of President Robert Mugabe(Chancellor/Prime Minister, Gordon Brown).
 
#4
The Bank of England have denied that they intend doing so but it remains an option which could be considered.

That means you've got about 10 days to get your money out of sterling and into something stable. Just as well the country still has plenty of gold eh?? Oh no - Gordon sold it all didn't he! Invest in paper now.
 
#6
All following a depressingly familiar pattern - whilst I realise that the dynamic duo are back in Downing Street controlling the flow of news, surely someone in the media is savvy enough to see through the spin? There is no way that you can have low interest rates and an increased money supply. The pound will sink so low that in a few months time, we'll look back on pound/Euro parity as the happy time. If only someone in whats laughingly called the government had ever had a proper job, they might have some clue as to get us out of this mess.
 
#7
Herrumph said:
The Bank of England have denied that they intend doing so but it remains an option which could be considered.

That means you've got about 10 days to get your money out of sterling and into something stable. Just as well the country still has plenty of gold eh?? Oh no - Gordon sold it all didn't he! Invest in paper now.
Darling just denied it on the 1 o Clock News
 
#8
Oh good - feel so much safer now.
 
#9
'Darling just denied it on the 1 o Clock News' - Funny, Gordon's in Liverpool, Alastair isn't allowed to make announcements without a responsible adult being present, so who's got his hand up his back now?
 
C

cloudbuster

Guest
#10
Sven said:
Herrumph said:
The Bank of England have denied that they intend doing so but it remains an option which could be considered.

That means you've got about 10 days to get your money out of sterling and into something stable. Just as well the country still has plenty of gold eh?? Oh no - Gordon sold it all didn't he! Invest in paper now.
Darling just denied it on the 1 o Clock News
We're fcuked.
 
#11
Oh - just remembered is that the same Darling who said in August that UK economy faced a slight slowdown in next year.

And fully supported abolition of 10p tax rate abolition

And thought 2.5% cut in VAT was all economy needed to boost Xmas sales

And was considered a bit of a lunatic left winger by Niel Kinnock

And as a councillor refused to set a legal budget

Perhaps I won't trade in those US dollars quite yet
 
#12
Darling can deny plans to print money without denyiny plans to carry out 'quantitative easing' (economist-speak for policies with the same broad effects as printing money).

Fraser Nelson in The Spectator said:
As expected, base rates are down half a point to 1.5% - so, yet again, drinks are on those lucky few with variable mortgages. I suspect they'll hit 1% before Easter. Then what? "Nobody is talking about printing money" says Alistair Darling - but this is a little Brownie. Quantitative Easing - the equivalent of printing money - is being spoken about by everyone and can come in many forms. The Bank of England can start buying stuff - Treasury IOU notes, company bonds, or even shares. So you'd attempt to lower market interest rates by boosting asset prices. Darling is right: he can fund the deficit through issuing gilts, then have the BoE buy the gilts without another banknote printed. Or the BoE can order the state-owned banks to start lending more money to less credit-worthy people, thereby shovelling more cash into the system. But this is how Fannie Mae got into such trouble: private banks didn't compete with non-commercial lending decisions and the state ended up taking a huge chunk of the mortgage system.

Anyway, there are a million ways to debauch the currency without turning on the printing press. With the BoE running out of rate cut options, you can bet Brown will be as inventive as ever.
I'm prepared to accept that there is a deflationary danger. I'm prepared to accept that the US has already started carrying out QE.

But I'm not prepared to accept that these clowns are capable of carrying out QE themselves without getting it wrong. Let's face it, they've not been blessed with a golden touch, have they?

The FT's take, here: http://ftalphaville.ft.com/blog/2009/01/08/50909/quantitative-easing-in-the-uk/

FT Alphaville said:
The fact that the Treasury and not the BoE is commenting rather gives the game away. It corroborates the thrust of the FT’s story and that appearing in today’s Independent: that quantitative easing is being considered and the BoE is having its independence somewhat compromised because the Treasury wants an equal say in the process.

This is perhaps where the greatest danger lies in the UK. In the US, where a form of quantitative easing is underway, and has been slyly progressing for some months now (US monetary base started to spike in October), the process is very much in the hands of the Fed. (Though without a doubt, the Treasury will be being consulted).

In the UK, a joint role will make the whole affair susceptible to the political exigencies of the government - and with QE already appearing on front pages under the inflammatory guise of ‘printing money’, it’s a delicate situation. Particularly so since the main danger of QE - not spotting a suitable exit point, overshooting and triggering inflation - would be a problem the BoE would be left to handle.
8O
 
#13
Herrumph said:
That means you've got about 10 days to get your money out of sterling and into something stable. Just as well the country still has plenty of gold eh?? Oh no - Gordon sold it all didn't he! Invest in paper now.
On a related topic, I'm hoping (somewhat forlornly) that this sort of reasoning doesn't reflect current government thinking.
 
#14
*note to self - trip to B&Q for wheelbarrow*
 
#15
Buy gold and guns...
 
#16
Ropes not guns - they are re-usable and the lists getting longer
 
#17
or golden guns...
 
#19
Herrumph said:
Ropes not guns - they are re-usable and the lists getting longer

Crossbows .... and do a course on how to make your own bolts! :twisted:
 
#20
mnairb said:
'Darling just denied it on the 1 o Clock News' - Funny, Gordon's in Liverpool, Alastair isn't allowed to make announcements without a responsible adult being present, so who's got his hand up his back now?
The entire Cabinet is in Liverpool today on one of their Meet the People type things. Only the 3rd ever full cabinet meeting outside London apparently...
 

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