Apparently we're not in recession some people on here have said

[MrSmith]

Most of the things people buy?

 

What exactly is our trade deficit?

 

£4.4bn But if you asked people to suddenly spend their saving, they would likely spend it on an holiday abroad, because they probably already have everything they need.

[MrSmith]

Hundreds of years ago people who heard voices in their head were thought to be mad.

They still are.

 

So which are you in this analogy, a believer in a spherical earth or someone with voices in their head?

 

Time will tell:D

[Cyclone]

£4.4bn But if you asked people to suddenly spend their saving, they would likely spend it on an holiday abroad, because they probably already have everything they need.

 

They'd probably buy that holiday through a UK tour operator, use flights with BA and buy new holiday clothes from M&S though.

 

Or maybe they'd upgrade their car.

 

Or build an extension.

 

Or re-equip their home cinema.

 

Or buy works of art.

 

To assume that they'd have a holiday is rather blinkered, maybe they've had all the holidays they want this year.

[Cyclone]

Not necessarily, economic growth could be down to everything being more expensive, so the overall wealth of the population doesn’t change, it could be down to lower production costs with fewer people employed, so some would become wealthier whilst other poorer. Growth doesn’t necessarily make everyone better off.

That's why I said 'on average'.

 

If accommodation is cheaper as result of a declining population we would have more money to spend on other things which would make us feel wealthier.

If it were cheaper in real terms, as opposed to cheaper only by comparison to today.

[Shef_Fitness]

But it looks like we're in deeper than the government are trying to let on http://www.dailymail.co.uk/news/article-2165933/Double-dip-recession-deeper-feared-new-figures-GDP-drop.html

 

 

 

If anyone saw Chloe Smith on Newsnight being taken apart by Jeremy Paxman

 

and then

 

Last nights Conservative representative on Newsnight, being equally ripped apart by David Dimbleby could see the root of the problem

 

The new breed of conservative polititians were taken apart in the same way Jeremy Kyle browbeats a drug addict every morning at 9.30am during his show. At least Jeremy is taking on a druggie with low intellect, both Jeremy Paxman and David Dimbleby were taking on a pair of ministers in power.

 

Last weeks labour representative did not stir much confidence in the ability of the opposition.

 

I accept your modern polititian is better looking than Norman Tebbit, Neil Kinnock, Mrs Thatcher and Nigel Lawson, but right now we need people picked for their ability, and not the fact they are under 35 and nice to look at.

 

But none seem to have a clue what to do to improve things apart from saying "well we inherited a mess in 2010"

[Teddybare]

If anyone saw Chloe Smith on Newsnight being taken apart by Jeremy Paxman

 

and then

 

Last nights Conservative representative on Newsnight, being equally ripped apart by David Dimbleby could see the root of the problem

 

The new breed of conservative polititians were taken apart in the same way Jeremy Kyle browbeats a drug addict every morning at 9.30am during his show. At least Jeremy is taking on a druggie with low intellect, both Jeremy Paxman and David Dimbleby were taking on a pair of ministers in power.

 

Last weeks labour representative did not stir much confidence in the ability of the opposition.

 

I accept your modern polititian is better looking than Norman Tebbit, Neil Kinnock, Mrs Thatcher and Nigel Lawson, but right now we need people picked for their ability, and not the fact they are under 35 and nice to look at.

 

But none seem to have a clue what to do to improve things apart from saying "well we inherited a mess in 2010"

 

 

Isn't it just that the form of interviewing is much more aggressive?

I love watching politicians squirm on tv but I don't think the old ones would fair any better than the new ones. They're just less respected. And tv viewing figures are increased by confrontation.

Their only job is make decisions and defend those decisions so it's quite funny when they fail so spectacularly.

Maybe they should change the selection process to include having a backbone and being able to respond in interviews.

[MrSmith]

They'd probably buy that holiday through a UK tour operator, use flights with BA and buy new holiday clothes from M&S though.

OK so a small percentage of the holiday cost will go to a tour operator and BA, but most would go abroad and M&S cloths made abroad.

 

Or maybe they'd upgrade their car.

Probably a Kia so most of the money goes abroad.

 

Or build an extension.

Polish builder sends most of his money home to Poland.

 

Or re-equip their home cinema.

made in China.

 

Or buy works of art.

Which isn't that much different to an investment, so the money might as well stay in the bank so the bank can pay huge bonuses to its staff which they can spend on more foreign goods.

 

That makes me think that the economy has faulted because bankers haven’t got as much money to spend as they used to have.

 

 

To assume that they'd have a holiday is rather blinkered, maybe they've had all the holidays they want this year.

If there was anything else they wanted they would have already bought it with their savings, I know there is nothing I want so if I was forced to spend my money I would use it go travel the world.

[MrSmith]

If it were cheaper in real terms, as opposed to cheaper only by comparison to today.

 

Once there are more houses than people want to buy, the price will drop and all the crap ones would eventually be demolished, housing would once again be affordable leaving more money to spend on other things. When people are forced to spend most of their income on housing it leaves less to spend in the economy.

[Bonzo77]

Do you honestly believe you are not being lied to by our government?

I believe it's being vastly over egged so those in power can sell of services and implement their wet dream of austerity. If everyone was spending, all over the world there'd be money moving around and changing hands. What possible benefit is there to panic and austerity?

 

This financial mess has not been caused by the government. It's been caused by banks.

 

The governments have bailed them out, now we have to pick up the bill. There's no conspiracy here.

 

Why would banks get themselves into this mess? It's not exactly doing their share holders any favours, is it?

[Bonzo77]

Is that how it works? Wouldn't there just be tons more money floating around and being lent/invested/paid out?

 

If all the "rich people demanded their money, to spend, as cash, I doubt the banks would be in a position to find the capital.