which is what is happening to Greece, but how you can see that as some sort of socialist conspiracy defies me -- when the money paid back will eventually find itself moored as a yacht in Cannes

unless socialists have a particular penchant for yachting in Cannes

 

It's not a socialist conspiracy, it's just the way the democracies are changing. The economic policies are getting more socialistic.

And it's not just Greece. We're all insolvent FFS, we've just got liquidity. The money will not be paid back.

 

yes and I agree 100%

but I see it as a failure of capitalism not a failure of socialism

 

I didn't say it was a failure of 'socialism'. I simply said that the decisions policy makers have made in the name of being 'socialistic' have had an adverse effect on the prudence of the system, and ultimately on the prudence of individuals. That's because creating wealth and therefore 'growth' is a logical, rational activity that people engage in in order to realise benefits in the future. By disciplining themelves, they put off present consumption, accumulate capital and put it to work for increased future consumption/choices etc. Political appeasement by a state in socialistic fashion is the reverse, in that reason and logical thinking are tossed aside in order to fulfill an emotional need of 'fairness' that is quite irrational but nevertheless human all the same. This necessarily has a detrimental effect on the evaluation of risk and the ability of people to use capital effectively in general.

 

you can't create wealth. If everyone had 10 times as much cash, they would still have the same purchasing power. You can just move it around a bit. QE1 only served to top up the bank's balance sheets, with a tiny amount of it filtering into the economy. Our current inflation is not related to QE1. It is caused by oil, gas and VAT increases. QE2 will give the banks a bit more solvency, it won't add to inflation as it doesn't filter through to the consumer, and it won't make a jot of difference to looming recession. If they want to get 70 billion (what's a billion anyway - thousand million or million million?) into the economy...... dish it out equally to taxpayers. It will get spent, taxed, recycled etc etc. Giving it to the bankers is a complete fail

 

Did'nt the yanks do this a year or so ago - gave everyone a $1,000 dollars or something to go spend, spend, spend?

 

How would an ETF that tracks the price of gold implode?

 

Quantative Easing is an admission of failure, shows that the country is not able to pay its way any more.

The last lot of clowns ruined this country, a national debt of approaching £1 trillion and a deficit of £170 billion is their legacy, nothing to be proud of. They try to blame the recession but that was down to greedy bankers and the government's gross failure to regulate them over their toxic debt dealings. I think those responsible should be cooling their heels in the Tower awaiting trial for treason!

I think PSL's forecasts are close to the mark, we could well be in for a period of austerity like that after WW2, and I can assure you that would be no joke!

The country's faith in any of the politicians these days is evaporating fast!

Les