Omega Owners Forum
Chat Area => General Discussion Area => Topic started by: Dusty on 05 March 2009, 19:13:35
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And apparently 75 billion pounds of new money.
Does anybody understand what this means in practical terms.
Will it lead to future inflation? :-* :-* :-* :-* :-* :-*
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Well, if 0.5% interest rates doesn't devalue our currency into insignificance just blindly printing money certainly will. >:(
Kevin
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Yup, i know exactly what it means. It means another useless idea that won't work just like all the rest from this gnikcuf crap government >:( >:( >:( >:(
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It's not actually printing money, but the net effect is the same, i.e. putting more money into circulation by buying bank assets and crediting their accounts, thus hopefully encouraging them to lend more (to other banks, as well as other sectors in the economy). Will it directly lead to inflation? Not necessarily, although economists are divided on the efficacy of such a move. Traditionally, inflation is caused by too much money chasing too few goods (and services). The current problem is the fact that the money isn't doing any chasing at all...it's too static. If the economy does get kickstarted, I expect it to take a while before we reach a traditional situation, so I don't see inflation as a problem in the short term, but longer term....who knows?
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The question is,what else is there that can be done that hasnt already been tried?
Will they have to accept defeat soon and sit back and wait for the markets to correct themselves?
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Its effectively adding extra money to the economy (i.e. the term printing money) and in our case, its to buy back government bonds in order to try to inject liquidity into the market.
The net effect is a further weakening of the pound.
So, this lot have run up a huge debt for us all and thet are de-valuing the value of your fixed assets to!
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It's not actually printing money, but the net effect is the same, i.e. putting more money into circulation by buying bank assets and crediting their accounts, thus hopefully encouraging them to lend more (to other banks, as well as other sectors in the economy). Will it directly lead to inflation? Not necessarily, although economists are divided on the efficacy of such a move. Traditionally, inflation is caused by too much money chasing too few goods (and services). The current problem is the fact that the money isn't doing any chasing at all...it's too static. If the economy does get kickstarted, I expect it to take a while before we reach a traditional situation, so I don't see inflation as a problem in the short term, but longer term....who knows?
agreed.. :y
and its too early to think for the long term..still we are in trouble.. :-/
and I must add that if current situation continues most people wont bother for devaluation as they wont have any money :'(
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and one thing to add, most countries are defenceless at the moment
as most of their industries and banks are sale for funny amounts :-?
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I'm only a truck driver so far from an expert but i did RSA/LCC commerce years ago. They have to try something, if they did'nt some of the banks would collapse resulting in you not being able to draw your own money, meet direct debits etc.
Could result in a little civil unrest. ::) Anyone got a scrapping smilie?!!!!!
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No need to panic though..........................as there is another £75,000,000,000 available ..............if it all goes tits up. ::) ::) ::) :y
So if the worst comes to the worst .....................it's only another £150,000,000,000......not so bad really. ::) ::) :y
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No need to panic though..........................as there is another £75,000,000,000 available ..............if it all goes tits up. ::) ::) ::) :y
So if the worst comes to the worst .....................it's only another £150,000,000,000......not so bad really. ::) ::) :y
how much is the per person?
Doug
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No need to panic though..........................as there is another £75,000,000,000 available ..............if it all goes tits up. ::) ::) ::) :y
So if the worst comes to the worst .....................it's only another £150,000,000,000......not so bad really. ::) ::) :y
how much is the per person?
Doug
Sorry Doug,but my little calculator only has eight digits. :'( :'( :-*
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I believe that each of us now "owe" about the same as it would have cost to buy a Monaro on the never never.
So if they bail Vauxhall out ,I might go down to Downing st. and yell "oi Gordon,wheres my rather Monaro. :D ;D
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No need to panic though..........................as there is another £75,000,000,000 available ..............if it all goes tits up. ::) ::) ::) :y
So if the worst comes to the worst .....................it's only another £150,000,000,000......not so bad really. ::) ::) :y
how much is the per person?
Doug
Sorry Doug,but my little calculator only has eight digits. :'( :'( :-*
calculator not necessary..say your population 60 million..
75/60 *1000 =1250 £ .. if 150 billion >>>> 2500 £ :y
excluding the case some will never pay and only take >:(
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The problem the politicians will have in the future is when someone suggests government funding for something they think is deserving and the politicians give the standard reply of "where,s the money going to come from?" they may well hear a chorus of "print it" :)
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Its effectively adding extra money to the economy (i.e. the term printing money) and in our case, its to buy back government bonds in order to try to inject liquidity into the market.
The net effect is a further weakening of the pound.
So, this lot have run up a huge debt for us all and thet are de-valuing the value of your fixed assets to!
I wouldn't worry too much about the pound, Mark. From where I'm standing, I think the euro is in dire straits and a flight from that currency would make even the pound look attractive! Not saying it will definitely happen, but the warning signs are there. Of course, the other positive thing is that a weak pound may reducing our propensity to outsource to China.
Is anything NOT made in China these days?
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Its effectively adding extra money to the economy (i.e. the term printing money) and in our case, its to buy back government bonds in order to try to inject liquidity into the market.
The net effect is a further weakening of the pound.
So, this lot have run up a huge debt for us all and thet are de-valuing the value of your fixed assets to!
I wouldn't worry too much about the pound, Mark. From where I'm standing, I think the euro is in dire straits and a flight from that currency would make even the pound look attractive! Not saying it will definitely happen, but the warning signs are there. Of course, the other positive thing is that a weak pound may reducing our propensity to outsource to China.
Is anything NOT made in China these days?
Cant see the outsourcing to China changing, they have a lot of government subsidies which dont exist here.
Also, we have no manufacturing left, this current useless bunch of toss pots have seen to that and that wont change short term!
Bottom line is, we are weak agaisnt the 3 key currencies, Dollar, Euro and Yen.....most of China trades in dollars!
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Its effectively adding extra money to the economy (i.e. the term printing money) and in our case, its to buy back government bonds in order to try to inject liquidity into the market.
The net effect is a further weakening of the pound.
So, this lot have run up a huge debt for us all and thet are de-valuing the value of your fixed assets to!
I wouldn't worry too much about the pound, Mark. From where I'm standing, I think the euro is in dire straits and a flight from that currency would make even the pound look attractive! Not saying it will definitely happen, but the warning signs are there. Of course, the other positive thing is that a weak pound may reducing our propensity to outsource to China.
Is anything NOT made in China these days?
Cant see the outsourcing to China changing, they have a lot of government subsidies which dont exist here.
Also, we have no manufacturing left, this current useless bunch of toss pots have seen to that and that wont change short term!
Bottom line is, we are weak agaisnt the 3 key currencies, Dollar, Euro and Yen.....most of China trades in dollars!
China have big stock of US$.. But they also want to change the situation.. Problem is if they change from US$, USA will declare war ;D
Interesting fact, in most of middle east countries British pound is precious and expensive than US$.. But there are easy ways to solve that, if you take the risk of making them angry ;)
A good startup can be your oil companies and industry can start using only pound ..See what happens after..