Bank of England Deputy Governor now saying we need to spend, spend, spend.

ILW

Might as well blow the lot on a big holiday and give it all to foreigners and then rely on the UK state for the rest of my life. Odd world we seem to live in where the !!!!less get all the reward and those that do try to put a bit away for personal changes in circumstances seem to get all the knocks.

System

ILW wrote: »

Might as well blow the lot on a big holiday and give it all to foreigners and then rely on the UK state for the rest of my life. Odd world we seem to live in where the !!!!less get all the reward and those that do try to put a bit away for personal changes in circumstances seem to get all the breaks.

At least you get a big holiday out of it Every cloud and all that.

Graham_Devon

Joeskeppi wrote: »

"But the saver isn't getting nothing are they. They are getting an interest rate, allbeit it, currently lower than inflation. "

Is that not worse than nothing?

No. You need to remember the type of people we are talking about here. Savers.

They still have their fallback. They still have their eggnest.

If they spend it all on stuff they don't actually need, they lose all that. Will take a LOT for people to just go out and spend savings they have been building up on stuff they probably don't actually need.

Nothing is actually happening here. I just challenged your "spend it or lose it" line which was so extremely simplistic.

ILW

Joeskeppi wrote: »

At least you get a big holiday out of it Every cloud and all that.

True, cannot see it helping to UK economy though.

System

ILW wrote: »

True, cannot see it helping to UK economy though.

Win win then, you get a holiday and the BoE's evil plan fails.

ILW

Joeskeppi wrote: »

Win win then, you get a holiday and the BoE's evil plan fails.

They have a plan?

System

ILW wrote: »

They have a plan?

Well, I could be wrong but I think their plan is to get people spending and reduce the real level of debt, through low IR's, QE, and high inflation.

The bit where their plan fails so far, is the part where no one lends any money to people.

I'm no expert by any means but that's what it looks like to a rookie.

amcluesent

Surely we all knew that BoE/Condem strategy was based upon "a continuing process of inflation, [by which]governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens"?

Obliging people to run down their capital reserves to cover expenses is the only option now we have no earning capability as a country and we're already bumping at the limit of QE unless we want our gilts sales to seize up too. It's not an accident, it's policy!

It'll last 20-30 years then we'll have no income and no capital. How it ends.

Look at the other 'signals' you are getting on energy security and food security. The 25 yr income stream on 'feed-in tariffs' is a huge signal that that Govt knows the lights will be going out in 2016 and is handing peeps a huge yield to produce power, not keep the money in a building society.

Cleaver

amcluesent wrote: »

How it ends.

Are you on some form of commission scheme from that website?

amcluesent

>Are you on some form of commission scheme from that website?<

Nope. It's just the most cogent narrative on the macro-economic future we face as economic and political power moves to the BRIC. No-one has to read it and free themselves from the controlled media.