Where do I go now? My saving plan is ruined.

a7man

rotate wrote: »

The goverment could have taken many actions to prevent the house price bubble from getting out of control including making buy to let less financially advantageous,compared to buy to live in.
However they wanted to engender a feeling of wellbeing in the population to keep them spending and keeping the labour goverment in power.
How they could not see this collapse happening is beyond me and only helps prove their utter incompetence.
If you think the situation is bad now,wait until they start fiscal easement.This is is just another term for turning on the printing machines and flooding cash into the economy.This is not scaremongering there is a B o E committee looking at this now.
This will cause the collapse in overseas confidence in sterling as do not forget we run a huge deficit in our overseas brought on by years of excess and a goverment that has allowed manufacturing to collapse and out of control financial services run by get rich quick spivs to be seen as our future.
This deficit is funded by foreign goverments and individuals holding sterling.
When they see the goverment printing money they will bail out of sterling.The pound will collapse,inflation will go through the roof and savings will become worthless.
Then we will all become beholden to the goverment for our survival.

I take it you have invested all your savings overseas then as you feel so strongly about this?

Old_Slaphead

a7man wrote: »

I take it you have invested all your savings overseas then as you feel so strongly about this?

I shouldn't think it will be too long before that starts to happen.

What will happen once those floodgates open? Presumably interest rates will have to go up again to finance the massive, massive, massive National Debt (estimated by the taxpayers alliance at £2.5 trillion and rising) and personal debt burden.

But then again, what do I know. I've already been told that my grasp of basic economics is poor.

SGE1

Old_Slaphead wrote: »

But then again, what do I know. I've already been told that my grasp of basic economics is poor.

To be honest mate, I'm sorry, but I stand by my comment. If you did understand the complexities involved, you wouldn't be so brazenly black and white about the whole thing. Or maybe you do have a decent understanding of macroeconomics, but you're just in denial...?

Old_Slaphead

SGE1 wrote: »

To be honest mate, I'm sorry, but I stand by my comment. If you did understand the complexities involved, you wouldn't be so brazenly black and white about the whole thing. Or maybe you do have a decent understanding of macroeconomics, but you're just in denial...?

Thanks for those kind words SGE1.

Given your viewpoints as expressed on other threads I can well understand how we don't see eye-to-eye (in support of my current anti-Labour leanings I can also offer that my partner, after many years of being a member and active supporter of the Labour party at both local and national level, has now given up on them and defected to the Lib Dems!!)

I’ve an opinion which may or may not be correct (get 2 economists in a room and you'll get at least 3 different opinions) but it currently concurs with that of the German Finance Minister. There is no long term survival strategy just a ‘patch it up’ solution and sod the consequence. Mr. Brown should have sussed out by now that the majority of his quick fix policies have ended in failure or u-turns (I’d be interested to know if many of his polices, other than the early BOE independence, have been hailed a success).

I fully understand that policies cannot always be right or wrong, black or white but I feel we ought to be moving in a right and sensible direction. 11 years of New Labour have been a fiasco that has been spun as a sucess on the back of a booming world economy - only now is it being exposed as merely a facade of micromismanagement. How many extra volumes of legislation has been created when it was Brown's stated intention to sweep away red tape?

In the current downturn GB’s Keynsian approach would be reasonable but only if he consistently applied it over the economic cycle which clearly he hasn’t. I worry about the huge National Debt he is accumulating and the effect on future generations. It’s about time there was an all party debate on this county's economic outlook – the only politicians who seem to talk sense are Vince Cable and Ken Clarke.

Using the cautious and prudent members of our society to subsidise the ‘I-want-it-now’ generation (Dominic Lawson’s terminology) is both wrong and immoral and sends completely the wrong message.