Gordon's credit crunch

[Pat494]

I am apalled that the PM has opted for the Zimbabwean method of getting out of the current credit crisis. What's that you may well ask. Well it is literally printing yourselves more and more money. The Zimbabweans have bank notes with millions printed on them that can't buy a loaf of bread they are so worthless !!!

Even our self appointed financial guru surely must be able to see that this is absolutely disastrous !! Or maybe not - he is such a pompous fool !!

Anyone holding cash should beware - the notes will fall in value so quick it will make your eyes water ! once others see through his rotten policies.

 

[TomTom]

Pat494, The Zimbabwean currencey is paired with other strong currencies, however there currenciey has little wieght on the global effect of the economy.
We have all ready saw a 25% decrease in the value of the GB pound, below $1.43 we are deffo in the shi*

I for one hope it dont get like Zimbabwea here, but like you say its a frieghtening possibility

 

[Rossini]

I'm not in disagreement with this statement, however its just not a matter of printing more money that could lead us to hyperinflation, there are so many variables that one can not say with any certainty that one of these variables will lead to hyperinflation.



But you have to ask your self, what other option does he have?

 

[fibonelli]

hyperinflation-warning
sovereign-debt-default-warning

 

[N Rothschild]

you do all realize that governments/central banks are constantly printing new money? ever heard of fractional reserve lending...?

 

[Pat494]

Sadly it looks like the magic words - Lord Keynes - and his theories are not going to fix the present crisis imho. This must be on a par with telling a priest that God doesn't exist because Keynesian theory is such a basic part of economic theory and has been since the 30s.
Yes it helped countries out of the depression years ago but things are now different and it will be disastrous to implement his theories. The spiralling debt has been allowed to get completely out of control by such noteworthy figures as Alan Greenspan etc. To massively spend into even more debt is ridiculous. Its like giving a terminally ill person steroids or a spendaholic more money to waste. The West's manufacturing companies are largely on the ropes and most will fail to the new emerging markets. Gordon, Bush and others keep repeating the same old mantra of open and free trade. That's just fine if it's not your economy that's going down.

 

[rog1111]

worse still, new money in this country doesn't come free, but with interest charges !!

 

[0007]

worse still, new money in this country doesn't come free, but with interest charges !!

I see the rumours about UK joining the Euro have started (EC minister then leaks to UK press). Is this Gordo's [or did I mean Mandy?] master stroke?

 

[rog1111]

...it's one way of persuading the British public that it's a good idea to give up the Pound !

I see the rumours about UK joining the Euro have started (EC minister then leaks to UK press). Is this Gordo's [or did I mean Mandy?] master stroke?

 

[Pat494]

Have read of Jim Rogers' words.

http://www.beeland.com/abolish_the_...he_world_ba.htm

And who was the silly a*se at Gleneagles telling the others to give more billions to the 3rd world financial black hole.
You guessed - our very own kilted clot