LinkBack URL
About LinkBacks
Is it me? am i out of touch? or are these people that we laughingly call a Government a completely clueless bunch of idiots?
I work in the financial sector, we saw this all coming years ago, we moved all our clients out of the stockmarket and into cash,gold and silver in February 2008, we have missed all of the carnage.
It was becoming obvious to us that Britain had reached a state of insanity, people really believed that there rubbish little houses were worth 8 or 10 times the average salary, ignore the fact that the long term average is 3 times !!!! and at every bust since records began 2 times.
The Banks and the Government believed the same rubbish. Right uyp to the point that they all imploded.
Inevitably the mother of all bubbles collapsed, Unfortunately it has now collapsed the real economy with it, notice unemployment? and job security and your future prospects?
Notice the effects of all the money printing? food prices shooting up. closer to home A New Transalp last year was 5300 today it is 6400. last year 1 pound was 1.5 euro, today closer to 1.1 Euro.
But the solution according to these idiots, is to try and reignite the housing bubble by dropping interest rates to 0% therefore screwing anybody who has been sensible and saved, printing money and taking on ever greater debt, Britain already has more consumer debt than every other country in the EU combined, but official policy is that we need more.
Imagine if the Government and lapdog media were producing news reports stating that "Great news today, for the first time in history the price of a new Honda Transalp has breached 10,000 pounds, hopes are that at this asset appreciation rate they will cost 15,000 next year"
Mad? that,s the British way with housing. Everybody hopes it goes up so they can voluntarily take out more debt from the bankers for the next house, or there children have to get into far more debt to afford a basic 1st time buyers house. We love being bonded debt slaves to the bankers.
But the bankers and Government are here to help. If you have 5000 pounds to spend on a mortgage and interest rates are 10% you can afford a 50,000 pound mortgage. If the bankers "help" you by dropping interest rates to 2% you can afford a 250,000 pound mortgage. How are they helping you? by getting you into 5 times as much debt, that will be 5 times as difficult to pay off?
What happens if interest rates rise? say 1%? on a 10% interest rate that is effectively a 10% rise. On a 2% interest rate a 1% rise is effectively a 50% rise and on a 250,000 pound mortgage not a 50,000 mortgage !!!!!!!!
Are we an educated people? or are we so dumbed down that we cannot even work out basic maths any more ?
I will tell you the future in Britain, The Government in particular but also Corporate and personal debt is out of control.
If they do nothing which would be the sane policy, house prices will collapse.
They will not do this, so they will take on massively more debt and print a lot of new money therefore devaluing the purchasing power of all existing money. This will mean house prices will be stabilised in the new devalued money.
However the side effects will be the Transalp at 20,000 pounds a weekly food shop at 400 pounds a coffee at 10 pounds. Also massively higher taxation to pay the interest on the Governments debt, huge unemployment, and drastically cut services.
This will all play out over the next 10 years, it is simply not possible to run a country as bad as Britain has been run without this happening. We have followed a lot of the policies of the old Soviet Union as has America. Free market capitalism with all the bailouts? i think not.
The results will be the same as what happened to the Soviet Union or Argentina or Iceland it is all just a question of time.
Reply With Quote
) to name but a few visionaries of our time.......
Originally Posted by StumpyFingers
Bookmarks