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UK credit rating downgraded. (Egan Jones)


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Unemployed people can't afford to grow potatoes.

 

Were hardly going to reduce employment, increase production, pay back our debt and realise prosperity.

 

The BoE will print on Thursday. Mortgage rates will rise. Unemployment shall rise. Inflation will increase again (and continue to be higher than wage rises - resulting in a further deterioration of the purchasing power of the common man).

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According to RT some 20% of americans are now turning to alternative forms of news , and the major networks are in a spin as they see their ratings drop . Lamestream broadcasting needs to tighten up it's act , methinks ...

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The irony is that their twisted economic system needs a rapid rise in interest rates and inflation to enable economic growth but the coalition have been telling us that we should be grateful that they have "managed to keep interest rates at historically low levels."

Either way, of course, us at the bottom will still be screwed.

 

Edit: And that is something Messrs Miliband and Balls need to grasp.

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The irony is that their twisted economic system needs a rapid rise in interest rates and inflation to enable economic growth but the coalition have been telling us that we should be grateful that they have "managed to keep interest rates at historically low levels."

Either way, of course, us at the bottom will still be screwed.

 

The problem with the low interest rates is that one of the main domestic purchasers of gilts, the UK pension funds, are increasingly less interested. Worse still for pensioners because gilt yields are so low pension income will decrease. Less income - less spend in the UK economy.

 

The void will be filled be overseas gilt purchasers, increasing our overall exposure to international markets, made worse by Osborne and Cameron's incessant advertising of the UK as a safe haven.

 

It's a slow economic suicide.

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