Vague_Boy Posted March 3, 2013 Share Posted March 3, 2013 Hot on the heels on the prospect of interest rates being lowered into negative territory we get: Odds are shortening on another burst of money creation from the Bank of England this week to jolt the economy into life. LINK "jolt the economy into life". Yeah, because QE has been such a rip-roaring success so far hasn't it? Now I'm sure we're all familiar with Einstein's definition of insanity: Insanity: doing the same thing over and over again and expecting different results Now this has all happened before and quite recently too, in Japan. Their "lost decade" is now into it's third decade. Are we heading for Japanese style stagnation? The British economy is turning Japanese as we face losing an entire decade to recession. According to leading economists, consumers will have to battle Japanese-style low interest rates, stunted economic growth, market volatility and inflation for many more years to come. Alan Clarke at Scotia Capital said: "We've lost 10 years of economic output to this recession – and our growth before the credit crisis was never ours in the first place, it was all borrowed. It's like Japan all over again." Japan first lost its AAA rating from Moody's in 1998, when its government debt was more than 100pc of GDP; the United States was similarly downgraded by S & P in August this year. LINK "and our growth before the credit crisis was never ours in the first place, it was all borrowed". Well, well, well, that ought to provoke a few comments from the "usual suspects". As for the UK, well, we've just lost our AAA rating and are blundering on with the same (failed) policies, so we're right on course at the moment. Link to comment Share on other sites More sharing options...
NorthernStar Posted March 3, 2013 Share Posted March 3, 2013 No surprises there then, isn't that why we've had our man from Goldman Sachs installed into Mervin's old driving seat. Link to comment Share on other sites More sharing options...
MrSmith Posted March 3, 2013 Share Posted March 3, 2013 Alan Clarke must have been reading SF for the past few years. Link to comment Share on other sites More sharing options...
acman Posted March 4, 2013 Share Posted March 4, 2013 Printing money is all that is left, Link to comment Share on other sites More sharing options...
NorthernStar Posted March 4, 2013 Share Posted March 4, 2013 Printing money is all that is left, To what end, who benefits? Certainly not the prudent it punishes savers, pensioners and long term investors and doesn't solve any problems, it tells me that our chancellor is a clueless fraud who just wants to kick his problems into the long grass long enough for him hopefully to lose his job and run away with as much money as he can before he gets linched. Link to comment Share on other sites More sharing options...
Cyclone Posted March 4, 2013 Share Posted March 4, 2013 No surprises there then, isn't that why we've had our man from Goldman Sachs installed into Mervin's old driving seat. You mean the former head of the bank of Canada, one of the countries which hasn't had a huge crisis and seems to have come through the recent troubled times without many problems? ---------- Post added 04-03-2013 at 12:20 ---------- To what end, who benefits? Certainly not the prudent it punishes savers, pensioners and long term investors and doesn't solve any problems, it tells me that our chancellor is a clueless fraud who just wants to kick his problems into the long grass long enough for him hopefully to lose his job and run away with as much money as he can before he gets linched. Because the chancellor gets a vote on the MPC right? Link to comment Share on other sites More sharing options...
NorthernStar Posted March 4, 2013 Share Posted March 4, 2013 You mean the former head of the bank of Canada, one of the countries which hasn't had a huge crisis and seems to have come through the recent troubled times without many problems? ---------- Post added 04-03-2013 at 12:20 ---------- Because the chancellor gets a vote on the MPC right? Mark Carney has a reputation for being very duplicitous, his reputation of short selling against his own advise to others is legendary. Notably his being caught advising the 1998 Russian Financial Crisis, where he was advising Russia on how to pay off its debts while also betting against the nation’s ability to pay off its debts. .... and then there's Canada's housing bubble, sub prime capital of the world; looks to me like Canada's huge crisis is just around the corner. http://business.financialpost.com/2012/10/04/everything-you-need-to-know-about-canadas-housing-bubble/ Link to comment Share on other sites More sharing options...
geared Posted March 4, 2013 Share Posted March 4, 2013 That all depends on whether they do something about it or not. If it's already been identified then thats an important step. Pre-2008 we all blundered along and never thought twice about impending doom. Maybe if the problem was well pointed out beforehand something could have been done? Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.