What would be the consequences of a total financial meltdown in the UK?

#1
What exactly would be the consequences of a total financial meltdown in the UK?

Surely it does not mean that all money being rendered as "worthless" ....... Does it?
 
#2
#3
I would not like the idea that i could wallpaper my home in £50 notes from top to bottom ...Even if it were free!

I would be far more concerned about not being able to afford the paste. :)
 
#5
G

goatrutar

Guest
#6
To put in in perspective, I recently purchased a Zimbabwean one trillion dollar note. It cost me about $5 AUD including p and h off fleabay.
 
#7
If it looks like happening, then this rat will be on the first available plane out before the ordure hits the windmill.
I have a convenient bolthole arranged & negotiable commodities available elsewhere sufficient to tide me over for a considerable time.
 
#8
If it looks like a melt down I'll be buying canned food and shot guns.
 

skid2

LE
Book Reviewer
#10
If it looks like a melt down I'll be buying canned food and shot guns.
An old friend was over for beers and stew, he works in London and of course conversation came around to shit which was going on......man His parents new neighbour also a chap who worked in London showed up at the front door, snattered and offerred to buy some pigs and pay for shotgun lessons. Of course they thought women trouble and dragged him in for coffee (this at the start of the banks diffs) and delivered the 'there there now things will look better tomorrow'. speech. To get the reply 'No it fuckin won't coz tomorrow the ATM machines wont be working' the chap was a head of stuff in one of those lots of initial banks.
 
#12
Have a look at life in Germany in the late twenties/early thirties. They suffered exactly that. Twice daily currency devaluations, money printed in the morning was not enough to buy a loaf of bread in the afternoon. A story that a little old lady went to the bank to withdraw her savings, carried the lot (millions of Marks) home in a wicker bag, she was mugged for the bag...

Money is currently worthless. We keep allowing degree educated imbeciles to run the country, and keep allowing other degree educated intelligent types to create weird financial 'instruments' by which they make themselves paper rich.
 

Wordsmith

LE
Book Reviewer
#15
What exactly would be the consequences of a total financial meltdown in the UK?

Surely it does not mean that all money being rendered as "worthless" ....... Does it?
The UK is considerably less likely to melt down than the euro zone, but we'll still be caught in the fall out from that. Total financial meltdown is unlikely because the Bank of England can act as a 'lender of last resort' and print money.

However, if we had another banking crash, the consequences for the UK would be nasty.

1) The Bank of England would turn the printing presses on (aka Quantitative Easing) to replace the money lost in the crash. This would result in a significant dose of inflation - annual inflation rates of over 10% would not be out of the question.

2) As lending dried up, the economy would go into recession. Unemployment would double to 15% - 20%, with lots of personal and business bankruptcies.

3) We would probably permanently damage our economy as we lost never to be replaced high technology industries (the future of the UK).

As I mentioned above the biggest current threat to the UK is a collapse in the Euro zone. The financial pages are now focussing strongly on this - and there can be very few companies in the UK that haven't got the message. Most businesses (and the banks) are trying to lessen their exposure to Europe, so its better if this crisis staggers on into the summer of 2012 - the impact on the UK will be slightly less because we've dumped European debt and tried to diversify into other markets.

But all in all, it's not a very pretty picture.

Wordsmith
 
#16
The scariest thing is that this really does happen, even in Europe and within living memory!

It is going on now, Robert Mugabe et al are a prime example.

But how did the affected population that this happen to manage ???

How the **** do today's population of Zimbabwe for example manage on a day to day basis ???
 
#17
The problem is we've convinced ourselves that £1 on a computer screen is actually worth £1...

It is not. We should have it backed up with a solid object. ie Gold, Silver, goods.
 

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