UK is not OK.

[panduranghari]

The U.K. Is Not O.K. | Grant Williams | FINANCIAL SENSE

Wow!

Firstly, Britain's 'safe-haven status' is a fallacy. It is no more safe haven than many of the other major economies who are choking on debts that cannot be paid off. The only reason it HAS that status currently is because of the very Achilles Heel that will ultimately prove to be its demise - the ability to print its own currency. By NOT being a part of the euro experiment, Britain has kept control of its fate and has been able to print its way out of trouble - so far - while its neighbours to the east have all been lashed to the deck of the same sinking boat, but the day is coming when Britain's profligacy will become important again. As I keep saying; none of this matters to anyone until it matters to everyone.

Secondly, interest rates may have 'fallen to a record low' but they have done so in the same way heavily-indebted gamblers often 'fall' from hotel rooms - with a big push (only this time from the Bank of England and not a guy called Fat Tony). Like US Treasurys, the price of UK gilts would be nowhere near these levels without a captive and very friendly buyer in the shape of the central bank.

And then there's the 'treasury source' who spoke of 'locking in for the future the tangible benefits of the safe haven status we have today' before finishing with a flourish when he tugged at the heartstrings of investors by referring to great-grandchildren who would be paying less in interest repayments than they otherwise would have done because of (and I'm going to give this last comment the space it deserves):

"...the government's fiscal credibility"

I have yet to find anything remotely credible about the UK governments fiscal policy - it's marketing policy, yes, but fiscal policy? Not so much.

Clearly, any government looking to lock in rates for 100 years is supremely confident of two things:

1: Rates are as low as they are going to be for 100 years

2: They have suckers at the table willing to lock those rates in for that length of time.

Britain is fcuked. But we already knew that.

 

[Mad Indian]

The U.K. Is Not O.K. | Grant Williams | FINANCIAL SENSE



Britain is fcuked. But we already knew that.

Mate, cam you give some reasons why it is -----ed? I have a few assumptions and i need some one to confirm it But please give us some heads up on this

 

[Armand2REP]

Mate, cam you give some reasons why it is -----ed? I have a few assumptions and i need some one to confirm it But please give us some heads up on this

UK deficit reductions are based on over 3% growth. The reality is the UK is only growing .5%, a third the rate of France. Their inflation is twice as high. They are in stagflation with the only inflationary easing due to a new economic slowdown. If you calculate the REAL projected deficit, it is going to be at Greek levels.

 

[Mad Indian]

UK deficit reductions are based on over 3% growth. The reality is the UK is only growing .5%, a third the rate of France. Their inflation is twice as high. They are in stagflation with the only inflationary easing due to a new economic slowdown. If you calculate the REAL projected deficit, it is going to be at Greek levels.

I know Armand, but what are the reasons for the Deficits in the first place?

 

[Armand2REP]

Stagflation... before the downturn the UK budget was in surplus. Labour started stimulating the economy by increased spending and the Tories are continuing the policy. It isn't working.

 

[Mad Indian]

Stagflation... before the downturn the UK budget was in surplus.

I think the Stagflation is due to the Welfare programs and unabated govt spending. Am i wrong?

 

[panduranghari]

UK deficit reductions are based on over 3% growth. The reality is the UK is only growing .5%, a third the rate of France. Their inflation is twice as high. They are in stagflation with the only inflationary easing due to a new economic slowdown. If you calculate the REAL projected deficit, it is going to be at Greek levels.

Actually it is worse than Greece.

The level of sophistry is remarkable.

 

[panduranghari]

Mate, cam you give some reasons why it is -----ed? I have a few assumptions and i need some one to confirm it But please give us some heads up on this

I think you kind of answered the question in your reply to Armand.

They are like a drug junkie who needs its next fix. If they do not print money out of thin air, the basic services will shut down. No free NHS, no free child education, no welfare, no housing allowance.

If there is no hyperinflation in the UK, I will change my real name. The advantage to those who can afford it would be to buy as much physical gold in personal possession and later buy prime London property for relatively low price. Something close to Knightsbridge or perhaps Chelsea or maybe Horseguards Parade.

 

[pmaitra]

They are like a drug junkie who needs its next fix. If they do not print money out of thin air, the basic services will shut down. No free NHS, no free child education, no welfare, no housing allowance.

Well said. Print money out of thin air with no gold to back up the currency, thus reducing the worth of each currency unit in circulation.

 

[Mad Indian]

I think you kind of answered the question in your reply to Armand.

They are like a drug junkie who needs its next fix. If they do not print money out of thin air, the basic services will shut down. No free NHS, no free child education, no welfare, no housing allowance.

Exactly where India is heading Under UPA-. So i am right on both accounts-

 

[Mad Indian]

Well said. Print money out of thin air with no gold to back up the currency, thus reducing the worth of each currency unit in circulation.

Now i think i am sure you are a center right on economics and politics with secular/liberal ideology wrt religion

 

[panduranghari]

Well said. Print money out of thin air with no gold to back up the currency, thus reducing the worth of each currency unit in circulation.

Did you know George Osborne introduced a pasty tax i.e if you buy a hot sandwich you pay 20% VAT. If you buy cold one you do not pay one. He is so out of touch, its breathtaking.

Cameron is a a descendent of Royalty. He is 5th degree relation to Elizabeth 2.

These guys are the same type of people who are related to Churchill who was the financial minister during the great Madras Famine in 1878. The mind boggles.

 

[Blackwater]

The U.K. Is Not O.K. | Grant Williams | FINANCIAL SENSE





Britain is fcuked. But we already knew that.

yes Britain,its concept Britannia and its nagrik has ----ed all time