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

PhylPho

Every saver knows that an eggnest is something you put together over a number of years in order to wear on your head on a rainy day.

I was first introduced to the concept by my grandmother, whose erudition in monetary matters not only embraced eggnests but also wise counsel such as "look after the pounds, and the pennies will take care of themselves".

Sadly, she's long since left us, but I have little doubt that were she alive today, I'd now be related to a Bank of England Deputy Governor.

Generali

HAMISH_MCTAVISH wrote: »

Actually, it is completely irrational given the wider consequences.

But most people are just too thick to realise it.

Game theory tells us that people will save in bad times despite the thrift paradox. It's a pretty good example of the Prisoners Dilemma.

HAMISH_MCTAVISH

Generali wrote: »

Game theory tells us that people will save in bad times despite the thrift paradox. It's a pretty good example of the Prisoners Dilemma.

Which is why it is the job of the BoE to "incentivise" spending for the greater good.

gagahouse

HAMISH_MCTAVISH wrote: »

Which is why it is the job of the BoE to "incentivise" spending for the greater good.

Mmmm, interesting, BOE's Posen has just stated on the wires the BOE should resume QE - do you speak to each other?

wherediditallgothen

gagahouse wrote: »

Mmmm, interesting, BOE's Posen has just stated on the wires the BOE should resume QE - do you speak to each other?

How long before Zimbabweans start to take the p1ss out of our currency?

Generali

wherediditallgothen wrote: »

How long before Zimbabweans start to take the p1ss out of our currency?

When the army tell them too I suspect is the answer unfortunately.

IIRC, Mugabe takes credit for inventing QE as 'successfully used by economic powerhouses such as the UK, USA and Zimbabwe.

wherediditallgothen

Generali wrote: »

When the army tell them too I suspect is the answer unfortunately.

IIRC, Mugabe takes credit for inventing QE as 'successfully used by economic powerhouses such as the UK, USA and Zimbabwe.

Despots do know how to paint things in a positive light don't they?

StevieJ

Wow, that was quick, everyone on message

LONDON, Sept 28 (Reuters) - Retail sales rose much more than expected and at their fastest pace in over six years in September, a survey by the Confederation of British Industry

http://uk.finance.yahoo.com/news/cbi-september-retail-sales-surge-at-fastest-pace-since-may2004-reuters_molt-f60c6ec5db41.html?x=0

PhylPho

Rather than continue on the route charted by the African economist Mugabe, it's surely not beyond the bounds of possibility to incentivise spending in a rather more original way than merely urging folks to "eat into" savings already eaten into because of income shortfalls caused by low interest rates.

Everyone on PAYE should be invited to fill in a form to be returned on-line or by post to HMRC at the end of this tax year stating how many non-essential purchases they have made and the total value.

The Revenue should then process those forms and the Bank of England issue ClubCard or Nectar points equivalent to the amount spent.

I'd prefer Clubcard points myself because they're worth four times face value on various products, unlike the £ which is heading towards being worth four times less. Actually, why not replace the £ with Clubcard points and the Bank of England with Tesco anyway?

wherediditallgothen

PhylPho wrote: »

Rather than continue on the route charted by the African economist Mugabe, it's surely not beyond the bounds of possibility to incentivise spending in a rather more original way than merely urging folks to "eat into" savings already eaten into because of income shortfalls caused by low interest rates.

Everyone on PAYE should be invited to fill in a form to be returned on-line or by post to HMRC at the end of this tax year stating how many non-essential purchases they have made and the total value.

The Revenue should then process those forms and the Bank of England issue ClubCard or Nectar points equivalent to the amount spent.

I'd prefer Clubcard points myself because they're worth four times face value on various products, unlike the £ which is heading towards being worth four times less. Actually, why not replace the £ with Clubcard points and the Bank of England with Tesco anyway?

Maybe some people could opt for Green Shield stamps?

Would we need to provide receipts with the self-assessment forms?