The Death and Rebirth of Sound Money
Guido has had a call round the centre-right think-tanks and found that traditional support for sound money policies is now non-existent. Even the Institute of Economic Affairs’ shadow MPC unanimously supports quantitative easing.
The IEA is London’s spiritual home of Friedrich von Hayek and Milton Friedman, and it was the IEA which in the middle of the 1976 global monetary crisis produced a pamphlet by Hayek; Denationalisation of Money. Guido has an original edition, it was in this groundbreaking work that Hayek argued that the government monopoly of money must be abolished to stop recurring bouts of inflation and deflation. How he must be turning in his grave to see the IEA advocate what he spent his life opposing.
Sound money was the traditional cry of conservatives the world over, Cameron even used the phrase in his speech to the Conservative Party conference as recently as last year. It is clear however that Osborne and Cameron have, in the face of a wider intellectual retreat, given up on sound money and are going along with quantitative easing – a mistake as momentous as their acceptance of Gordon’s spending levels. In all of Westminster’s Wonkland surveyed by Guido, only Madsen Pirie of the Adam Smith Institute is opposed to QE (also known as printing money). Policy Exchange’s newly hired chief economist, Andrew Lilico, told Guido there was no other choice. Lilico also told Guido that if QE was successful inflation and interest rates would be as low as 10% each in a couple of years – some success.
So Guido is looking forward to James Tyler’s speech tonight at Policy Exchange. Little known outside the City’s money markets – in which he is one of the largest and most invisible players – he is going to sound the cry for sound money in terms that Hayek would approve. All is not lost – Russian and Chinese economic policy makers have read their Hayek – and are said to be preparing to propose a new, more Hayekian monetary order after this credit crisis has abated. Sometimes it takes a crisis to precipitate a solution…
Haven’t read it yet but couldn’t resist.
Tra laa!
time for bed
Deflation isn’t the problem. It’s inflation.
Labour is the problem.
The problem with Labour is they soon run out of other peoples money to spend
True. And another problem with Labour is that they’re complete kunts.
Well, their policies certainly aren’t helping matters. If anything, they are making a bad situation worse. I guess we ought to expect this from Brown, he doesn’t know what he’s doing.
The trouble is, I take one look at Brown’s colleagues and I see no reason for optimism. There isn’t a single member of the current government I would trust to run the economy.
Gooey Blob
I wouldn’t trust them with my piggybank
A Labour government is like having cancer of the hoon. No f**king future.
Commies are the problem.
The problem is not so much they run out of money, but that they control the printing presses. If only the supply was limited. They are unwilling to face the reality that the UK is broke and hard choices need to be made. Sadly no one in my opinion has the balls to say enough is enough.
one question and one question only
Besides us and Zimbabwe who else is printing money in this way and for this reason at this time?
Honest question
The Germans own the money printing plant in Zimbabwe
Disney?
the americans
Me, but don’t tell the police
Washington
Don’t expect a serious answer to a serious question on here.
but the BBC have reported that the Federal Reserve are effectively printing money
Amongst our weaponry are such diverse elements as fear, surprise, ruthless efficiency, and nice red uniforms!
Financial misconduct = Conservatives
And grumble flicks. Don’t forget them.
Sad Frustrated Middle Aged Men = Labour
grumble flicks?
Grumble Flick: Blue films
Were we paying for Timneys Gay Prawno or do his intersts lay elsewhere?
http://www.thedailymash.co.uk/politics/politics-headlines/mps-to-claim-for-black-markers-used-to-censor-expenses-claims-200903311675/
Dollybot.
Runtime gosub Dosbot exe.
“Quantitititivitiveitive Heaving = Fiscine platitude.”
reload..
Chancellor only marginally shafts business on a rates rise tomorrow. 2% rise instead of 5%.
Financial Tinkerers = Porno Husband
Go home Inquisition. The rest of your crew only work till 3pm.
Am I allowed to say ‘FUCK OFF’?
I don’t think my parents would like me saying it , but now I’m a 50 something year old woman, I think its time to think for myself!
So stop being so infantile you hoons (and I really did key in hoon there and not the very naughty c*nt word. Its time to grow up and accept that there are problems, and to realise those problems have been created by the government we’ve had for the last 12 years.
Financial incompetence = New Labour
You have been looking at the wrong sites. Try this Demetrius that has gone round the web:
http://thecynicaltendency.blogspot.com/2009/03/quantitive-easing-and-rates-of-interest.html
There are also simple guides to the G20 and Mercantilism if you want to get really serious for a change.
The UK is already in the early stages of stagflation. The BofE indulging in QE at Brown’s bidding will just make this ten times worse, debauching the currency and importing massive inflation. Meanwhile, the productive economy goes further into recession, assets (particularly house prices) are crashing, and wages (unlike in the 70’s) are stagnating or being cut.
Tighten your belts and prepare for years of austerity, even penury.
Thank you for that, the problem is how do we get banks lending again?
I’m sorry but I haven’t a clue.
Conservatives = Rabbits in headlights
It’s alright George, I’ll forgive you for that.
The real problem lies with people who can’t admit they don’t have a clue.
You do what the Americans did in 1920-21 (or 21-22). Nothing. Then the economy recovers within about a year.
Are you mad?
Conservatives = Rabbits in headlights
Nope, America had a sharp recession in the early 1920s that it recovered from very quickly because the government didn’t meddle. In fact the Fed put interest rates up.
To lend you need to find willing borrowers
Don’t worry George, it’s not your fault. No one wants to borrow money with idiot Brown in charge
Bank of England Base rate 0.5%
Typical mortgage rate 5%
Personal Loan rate 11.9%
If we didn’t rely on borrowing then they would need to tax us less otherwise we’ill starve. Probably. Borrowing is a tax on income after we have already paid tax on income so if we were’nt taxed we needn’t borrow so much worthless paper with interest added on top. Only business’ should be allowed to borrow from now on and should pay fair wages.
George – its not your problem – until the next election!!!!!
“how do we get banks lending again?”
You get a new prime minister who is prepared to tackle the problem rather than attempt to bullshit his way through it.
You get a new prime minister who will force the banks to show their balance sheets and the true extent of their liabilities.
The simplest mechanism is to call a general election now.
‘George Osborne’ clearly does not know his history.
Or his economics or his politics.
I do not think we should be surprised at this since there is not even the most rudimentary knowledge of the global warming scam on the left or in the media and so basic economic history is far too difficult.
The US did very little in 21 22 and the crisis passed by.
In 29 Hoover (described as ‘a compulsive interventionist who knew nothing about markets’ – sound familiar?) started intervening in a Keynesian manner and things got worse.
Hoover said in 1929 – “I have instituted . . . systematic . . . cooperation with business . . . that wages and therefore earning power shall not be reduced and that a special effort shall be made to expand construction . . . a very large degree of individual suffering and unemployment has been prevented. ” — sound familiar? It did not work. The Unions lauded him at the time..
Hoover said – “we might have done nothing. That would have been utter ruin.” – sound familiar?
Roosevelt did the all the same to no great different effect. Rearmament on a grand scale eased the depression and unemployment.
The great and the good are misreading History bigtime and a dumb media are keeping everyone ignorant.
Pardon me for injecting a bit of sanity to this blog – please now get back to your slanging off.
Guidorc,
You pathetic ninnie, you have absolutley no clue about this situation.
Kazaam!
Sorry – I know its pathetic to re-post but……
Am I allowed to say ‘FUCK OFF’?
I don’t think my parents would like me saying it , but now I’m a 50 something year old woman, I think its time to think for myself!
So stop being so infantile you hoons (and I really did key in hoon there and not the very naughty c*nt word). Its time to grow up and accept that there are problems, and to realise those problems have been created by the government we’ve had for the last 12 years.
GET A FUCKING LIFE!!!!!!!!
Have you contacted Reform, Guido? They seem to have been the most credible on this in recent months.
Does this mean that I should sell short on Wheelbarrow futures then?
What does Dolly think?
Harman/Galloway/ Socialist nothing to be proud of – whats your 2p on the future of money wheelbarrows then??
Every day in every way Grate (doesn’t it just) Britain becomes more like Zimbabwe…
I’m getting on with the job!
I’m getting on with the job in hand!
Jolly good just put it on the expenses along with the Kleenex.
Anybody up for a spot of birdwatching on Clapham Common tonight?
I’m game, I’ll ask William.
My husband is dealing with his inflated jobbie at the moment. Those videos have a lot to answer for….
I’m getting on with a wank!
Will you be putting your specs on those next set of expenses?
You’ill go blind if your not carfeful you filthy little bugger.
Agree totally.
The point is – we are where we are and the chances of any economy recovering with the current debt and therefore future tax levels is laughable.
It is going to be bad, it is going to be very painful and it might be for quite a long time – but what is the alternative now we are here? Our national debt will be over £2 trillion by the end of the year – how the F*ck do we pay that off? Even the most extreme spending cutters feel £100bn a year is possible – that doesn’t even pay the interest on the debt when interest rates inevitably go up!!!!
The grovelling weasels decided on this policy 9 months ago and realised an opportunity for massive socialist spending as in their eyes it would all be inflated away. C*nts.
My contempt for them is complete but what is the alternative now? It is the only way to protect our children. We take the hit now but afterwards we must all demand sound money.
Those who had listened to guido about Gold should be very grateful for the rewards to come.
Tough luck savers
We’ll be paying for it, our children will pay for it and our grandchildren will pay for it. Over 60% of your income will go to taxes be it income tax or VAT. It’s like communism without parades.
Tra la! All hail Labour!
Actually the Conservatives don’t have a position on this or anything.
That’s because the Conservatives are the ‘do nothing’ party.
Conservatives = Rabbits in headlights
the tories didnt get us into this mess you cock!
Not true, moreover they certainly haven’t a clue as to how to get out of it!
Conservatives = Rabbits in headlights
Yes they did!
When God created Adam and Eve, they were happy in the Garden of Eden. But then a Tory came along and evil entered the world!
I am blaming the Conservative Party for The Fall.
And Gordon could well be Jesus. So FUCK YOU!
No it’s not that I’m blaiming them it’s that the Conservatives haven’t a clue as to to what to do!
Probably they will stick to ‘do nothing’, you no like those apes.
Conservatives = Rabbits in headlights
i think labour have had the keys to downing st for the past 12 years………
or are labour re-writing that too?
So no ideas, plans, philosophy, objectives, solutions, you don’t recommend doing anything?
That’s ‘do nothing’ then isn’t it?
Conservatives = Rabbits in headlights
It is a shame ZaNuLabour weren’t the “do nothing” party…
Then we wouldn’t be in half the mess we are in…
Imagine if instead of selling gold at a reocrd low they had “done nothing”, imagine instead of creating hundreds of thousands of public secotr jobs they had “done nothing”, imagine instead of micro-managing the public services and telling the medics teachers and police to spend their time gathering statistics and implementing the latest central dictats they had done nothing and let them get on with the job….
How better the country would be now!
If only it was that simple. Our PR told us to keep the story to that but it’s not washing this really is a global crisis.
I think you are missing the small problem of banks being loaded to the gunnels (h/t Hannan) with toxic credit derivaitves that nobody understands and nobody can value and if they do find the value the stack of cards comes crashing down. I think it’s called a capitalist crisis or something.
Conservatives = Rabbits in headlights
There is no easy cure. Doing nothing will allow for the bad debt to quickly work its way out of the system. Spraying money into the system just keeps it clogged up with bad debt and delays the recovery.
Georgie boy, you invariably show that you are an illiterate Leftie sooner or later, normally sooner.
Gunwales, not gunnels, you fucking hoon idiot!
‘Do nothing’
Yep, repeating that over and over again until next June is really going to convince the public to vote for another five years of Labour.
My mother’s take on this – after a lifetime of balancing the books with very little money – was ‘we’ll never be straight again’.
For those readers who have never been north of the north circular, ’straight’ means not being in debt.
It was books-balancing middle England that turned to Maggie in 1979. Have you forgotten Maggie’s monthly shopping spree with the cameras, which allowed her to demonstrate what a mess Labour had made through the prism of rising prices in the shops?
There’s no talking your way out of this mess. It’s probably worse than 1979.
Ok so what should we do?
Save, save, save?
Spend, spend, spend?
Guarantee credit so banks can
Lend, lend, lend.
Quantitatively ease?
Quantitativley squeeze?
What would funny teeth Maggie have said, the old nutter?
In her day she said the problem was too much Union power.
Maybe now she would have said nationalise the banks, oh it’s so confusing!
Conservatives = Rabbits in headlights
“Ok so what should we do?”
Shut down the bank of England, restore the gold standard, let the bad debts work their way out of the system. Quick recovery is not possible.
Hello Noddy, have you seen Pink Cat?
Mr Ears, I seem to recall I had you placed on the sex offenders register.
‘Do Nothing’ — oooh oooh another chance to promote my new word!
extravention – google it.
Actively doing nothing because it is the right thing to do.
Urgent action required – is that why Darling postponed the budget until three weeks into the new tax year?
Meanwhile the temporary relief given for the abolition of the 10% starting tax rate band has disappeared
so has the temporary relief provided by porno’s
Labour = total wankers
A man is hanging by his hands from a crumbling cliff face.
The ground is a thousand feet below.
Three politicians stand nearby looking on. The ground between
them and the endangered man is weak. Stepping on it
may cause it all to fall.
“Let’s get lots of rubble and load it onto the edge of the cliff,”
says the Labour politician. “The way to cure a collapsing rock face
is to load more weight onto its already feeble structure.”
“Let’s nationalise the cliff face,” Says the Lib Dem Guy. “If we own
it we can just order it not to collapse!”
“No,” Shouts the desperate man. “Please, no. Don’t do anything!
I can climb up…”
The Tory politician looks on. He can see the man has a good grip.
He seems strong. It is likely he will be able to pull himself up.
Approaching is dangerous. While the Tory is considering whether
to take cautious action or do nothing, the Labour Politician has
already begun gathering rubble.
“I know what to do…” he sneers arrogantly. “You’ll see…”
As he gets into his ministerial car loaded with porno DVDs and drives off to his second home laughing at the stupid, tax paying private sector worker who tumbles to his death.
But….
The man didn’t die! It’s very bad, and his limbs are smashed to bits on the rocks, but he still has a pulse. He is put into an ambulance and taken to the hospital (some distance away as they closed the local one) where he is operated on. It’s looking good.
But…
He dies of MRSA.
Why are trolls so idiotic and intellectually unsound?
Is it because they are made of stone?! and therefore do not understand the pain and suffering happening in the realworld?!
Quite right Guido – people have somehow been sold the idea that “the only way out” is to create Weimar Part II, whereas of course that’s the only thing that is guaranteed to make things really, really bad, for a really long time.
I’m surprised though that you believe , in your wildest dreams, that CHINA and RUSSIA, of all countries, would be the ones to denationalise money. They pretty much invented all the problems we’re experiencing. And they most certainly have not changed their spots.
Anybody fancy a spot of birdwatching tonight on Clapham Common?
I thought you watched badgers, you hoon!
Badgers? I hope your not insinuating that I’m some kind of Welsh pervert. I’ll report you to Derek Draper he takes a very dim view of that sort of thing.
Well he certainly wasn’t interested in beavers!
Can you record the event, Guido?
http://www.policyexchange.org.uk/events/event.cgi?id=152
a 30 % currency devaluation-
then printing money……..is total madness.
the only way out is to stop pissing our money down the drain!
but gordon doesnt give a fuck-he and his other schoolboy chums want to bring the uk to its knees………
wake up!!!!!!!!!!!!!!!!
it has been his raison d’etre ever since he was a kid……
and thought that he was superior to all the waifs and strays.
he wants a cuban style paradise.where everyone is equal……….
except him and his mates…….
anyone that doesnt fit in in or works to get money is an evil capitalist……
imho everything he does is driven by his loony view of marxism and his own delusions of grandeur……
the tories should be attacking him EVERY DAY and on EVERY single plan he has…………
“”but gordon doesnt give a fuck-he and his other schoolboy chums want to bring the uk to its knees……”"
Why the fuck not….we are not going to be in power next year.
Why not a scorched earth policy.
We can then criticise the Tories for it when we are in opposition.
It will take centuries for then to drag the country out of the shit we have got it in.
Then we can regain power again – and a country on an even keel (like last time)
Why do you think we are screwing the expenses – and claiming for everything – we need the money to last us for 10years+ whilst we are in the wilderness.
What do you think African Dictators do when they knwo the game is up…load up the planes with gold and prepare to fly off intot he sunset to a friendly dictatorship..
Perhaps you’re right, Big G. But your track record on the Irish Economy suggests you don’t have a clue what you are talking about.
Not saying anyone else does either, mind.
I liked this – somone sticking to their guns despite being shouted at, laughed at etc…
The only question – is years of ridicule worth being able to say ‘told you so’?
The people puttng him down made money all the while and presumably will soon be back…
Following the crowd (even when wrong), may give the best outcome finanaically…
Don’t forget Chile, which still remembers Friedman’s lessons, even with a leftie presidente.
what is all this tripe about the tories dont know what to do?
nobody knows how to cure it!
it was created by a bunch of morons that were like kids in a sweet shop……..
it is simple- our country produces very little and imports more than it can afford……
we act as if we are rich but most of it has been done on credit…..
IT’S AN ILLUSION!!!!!!!!!!!!!
so now we are in the shit- and guess who got us there?
nothing to do with anyone except g brown and t bliar
two people who should be locked up!
that was meeeeeee..
fug angry at all the lies and the destruction of England.
All the stuff people bought.
The fancy hospitals, new colleges and schools, the make-believe jobs in Diversity and Cultural Awareness, the feel-good foreign aid initiatives – even the wars in Kosovo, Sierra Leone, Afghanistan, Iraq:
The bill is on the doormat.
Welcome to never never land – which is how we’ll be paying – for sixty years.
educashun educashun educashun thats what tony woz (sic) about!
Stopped people like me getting a job cos 20 odd years of experience woz(sic) worth less than a media studies degree!
Or maybe its because NuLabor only wanted stupid women (like Harriden, Jackboots etc etc etc) being in positions of power (as opposed to brilliant women like myself!!!!) – cos then when it all goes wrong – lets blame the wimmin!!!!
Print money, more immigration, more welfare then all the tories leave and it will be a utopian paradise.
And you’ll be fucking welcome to it, you twat.
Labour Governments = Crime, pornography, drugs, guns n’shit
If I was 10 years younger I’d be out of here tomorrow – especially because I would get away from complete hoons (And I really keyed that in) like you!
ohshit, leftie fucktards everywhere … remember everyone, violent, uncontrolled bursts.
So do you have any ideas?
Conservatives = Rabbits in headlights
idea 1……….
stop pissing our money away!
idea 2
stop creating an army of bureaucrats on vast incomes.
3/ stop id cards
4/stop creating more taxes.ie council tax
5./stop nhs computer spending
6/ stop giving our money to other countries
7/ stop wasting money on tracking US!!!
8/. stop twats like you posting bbbbollocks on here!
9……….give mps a salary of £50,000 pa…………no expenses……..
if they dont like it they can feck off and try to get a job…….
nobody is forcing them to ’serve.’
10/ make people pay for their own hand relief!
Thanks we’ll put it straight in the manifesto, would you like a job, oh, oh, he works for us already….are you joking…..
Really?
Well tell him the question is how do we sort out the banking crisis!!
What are we going to do?
Conservatives = Rabbits in headlights
Ive got one – compulsory euthanasia for annoying little left wing shits who are boring the arse off everyone.
Do yourself and us a favour and throw yourself under the nearest bus.
no it wasnt!!!!
read your own item 44 fuckwit!!!!!!!
and it isnt just a banking crisis……..
that is a smokescreen…….
it is a government crisis caused by 12 years of fools wasting our money and over seeing the destruction of productive jobs…..
now go away and stop being a cock!
labour=financial seppuku
Has Dolly made an appearance?
Your a right Hoon.
You forgot to mention cancelling the unwanted 2012 Olympics.
I can say one thing with complete certainty which is that the idiot writing on here is not me. If he is so full of ideas maybe he can sit down and start with an original name; no, thought not.
If we do restore the gold standard (we can hope) it should be a 100% reserve gold standard. It should not be the lame gold-exchange standard we had in the interwar years or the imperfect fractional reserve gold standard of pre-WWI. These people need to read their Mises and Rothbard as well as Hayek.
Were you in the Boer War?
Either way you’re winning hands down now.
Ping!
Not enough gold to do that apparently.
Doesn’t that depend on the value of gold? There may only be 7,500 tons in the whole world but at $50,000 an ounce… why, it’d pay for at least half another bank bailout.
here here, money should have value, not be conjured up out of thin air ( then fractionally reserve multiplied into an even bigger amount than they conjured up out of thin air ion the foirst place.
If you can’t see that this is what caused the ‘bubble’ in the first place then I suggest….Well, I can’t suggest anything, if you can’t see it then you wont understand anything I might suggest, Guido stop me for fuck’s sake, I’m rabbiting on now and I can’t stop…..
This got me spitting feathers
http://www.tesco.com/superstore/xpi/6/xpi58858486.htm
George Osbourne (several posts) has a strap line: Conservatives = Rabbits in headlights.
I like rabbits and I would rather be a rabbit than a fucking blind mole digging hole after fucking hole desparartely trying to find a direction to go in, then coming up for air and leaving a great pile of dirt on my nice lawn.
So there!
Splat
thought for the day, ESPECIALLY FOR GORDON BROWN.
“It is no crime to be ignorant of economics, which is, after all, a specialized discipline and one that most people consider to be a ‘dismal science.’ But it is totally irresponsible to have a loud and vociferous opinion on economic subjects while remaining in this state of ignorance.”
– Murray N. Rothbard
Rate this quote at Quoteland.com!
http://www.quoteland.com/rate.asp?QUOTE_ID=4591
That’s for Guidorc he’s such a ninnie.
Guidorc, stop slobbering!
Dolly, you are a moronic and pathetic troll.
No – hes a complete and utter wank – like possibly Mr Jacqui Smith?!
“is not lost – Russian and Chinese economic policy makers have read their Hayek – and are said to be preparing to propose a new, more Hayekian monetary order after this credit crisis has abated. Sometimes it takes a crisis to precipitate a solution…”
The Russians and Chinese are going to call for an end to central banks and competing currencies? Hmm, I thought they (or at least the Chinese) were looking at going down the Keynesian path of creating a new world fiat currency.
*should be introduction of competing currencies
I’m am going to be very busy tomorrow at the Bank of England
G20 PRO Capitalism protest
Will you be boning Mervyn King?
I heard that he likes to have five pounds in arrears.
Hells bells Guido tell me your not following Dale on the telly trail,next thing we know they will be calling you an expert.
Yeh but Emily Maitliss called him – Paul “Stone” at the end of the piece in her hurry to shut him up about Gordon Brown claiming his Sky Movies on the taxpayer
Your comment is awaiting moderation.????????
the auto mod has mis read yr handle as agonybutt and has forwarded yr details to Mr Timnay
Jesus, when will these fucking thieving Hoons fuck off and die
tsk tsk lol
More like hells bellies.
Guidorc needs a lot less belly if he wants more telly.
You’re not funny.
Sauron is a complete and utter wanker
I love you Mr Frodo Sir.
Bugger, that was supposed to be posted under the name of Sam Gamgee. Joke ruined.
O/T – just heard McBust giving the Home Sec his full backing – “She’s doing a great job” he said.
With an endorsement like that she’s done for….
This leads the Tuscan to speculate what DVDs Obama gave Gordon:
1. Raw Meat 1, 2 & 3, natch.
4. SS Experiment Camp
5. Anal Agents
6. Electric Blue 1-15.
Plus some home footage of his mum as a bonus.
7. Butt Plugs at Dawn
8. Sterling … My Part In Its Downfall
9. Ars Warts
10. The Loneliness of The Long Distance Bummer
11. Fatman Returns
12. Wee WIlly Winky
Plus some footage about healthy Scots lads in the park.
As usual the Adam Smith Institute has the correct analysis…
…and the Ludwig von Mises lot.
What have we done to deserve the most spiteful, useless corrupt Government at the same time as the weakest, pitiful spineless Opposition?
Who hasn’t been saying there prayers?
That is the point – there is no opposition! I’m sure I heard Call-me saying Jacqui’s problems were not a resigning issue – WTF!
We might have no respect for the government – but where is the respect for the opposition? Why have they not come out and condemned HMG over the troughing? I’m sorry but Call me is as out of touch as Our Glorious Snot Gobbling Leader.
The only reason I can think of is he wants ZaNu and McBust to stay in power as long as possible.
Guido, the left hand side of the comments have disappeared of my screen, yet again, and I cannot get them back. Please,please get your software supplier to fix this problem.
I.E Ver 7 fixed it for me download from microsoft
Remembering and liking both John Blundell and Madsen Pirie from FCS days. I find myself more in sympathy with the ASI rather than the IEA on this one. The only thing that could pull me to the IEA outlook is something that is often ignored, namely the velocity of money. While money supply is the critical factor, the velocity of money can kick in with people just slowing down their spending patterns,
If everyone just puts this new money supply in the piggy back and pays off debt then the inflationery pressures of increased money supply (M3) are strongly reduced. This may be what is happening in the economy right now.
Money velocity is down but when inventory runs out, things will pick up and then who will pull on the reins before it is too late?
why do you think the bank of england pension fund went into indexed gilts? they know an inflationary cycle when the see it coming.
Outrageous that they support printing money
Printing money will lead to massive inflation and wipe out savings as they won’t let interest rates catch up with the real rates. This government is going to be annihilated at the next election, even with all the postal vote fraud.
Who says there is going to be an election? All the immigrants are used to third world dictatorships so they won’t object and all you tory persons can emigrate.
Ah at last liebour trolls start telling the truth. It will be postal ballot rigging as never seen before and if that doesn’t work Civil Contingencies Act. Of course the snotrag is not about to leave, his Socialist hell has not yet been completed. The Queen is still on her throne.
Scary comment – but if you can say that then you know you are first against the wall come the revolution!
You can fool some of the people all of the time, and all of the people some of the time. QE is the vain process of attempting to fool all of the people all of the time.
It’s like pissing in a cold bath.
Quite.
A novel analogy that I will remember.
But that warms the bath up therefore it serves a purpose – not like QE
No – its like pissing in a boiling bath to cool it down.
O/T
But is is it true that Gordon McLoon our P
Beast has been Kelly’d by the look of it.
Expenses Outrage Fools No-One!
I will start again
Is It true that Gordon McMental has also been caught out watching “Raw meat 3″ and then charging it to us?
Mr OH
I
Shot in the back of the head this time by The Jackal, I think.
Air Force 1 just flew over my house. Really
You’ve never seen such a rush to get the guns out.
Landing @ Stansted? Let’s hope he likes a good queue.
Mr OH I always piss in a cold bath its Green
Well yellow, clear or fucking luminous depending how much I have snorted.
Hand on heart
Tell us all that you have never had a piss in the bath,drinking a beer having a lazy wank and reading Top gear magazine
SEE!!!!!
yOU FUCKING HAVE
(:
everything is going to plan :-
This is worth a listen to honest, a 10 min Vid from Yuri Bezmenov on Subversion, ideological indoctrination and crises.
Apparently, we can expect our own ‘Saviour’ anytime soon.
the good news is, that the loony left are first to get it once these useful idiots have served their purpose.
The bad news is, this video was made in the 1980’s.
Uri Bezmenov on Subversion of Target societies
Yeah, links to a series of these vids have popped up everywhere lately, almost like a smear campaign by the Republicans/Tories. But I remember the furore back in the 70s and 80s- reds under the bed stuff and communist threat etc. During the good times our fears havee been subordinated.
If the vids are genuine then they are indeed apocryphal. I am beginning to believe that they are.
If Brown Blair Prescott are Maxists, they have been incredibly successful. PC, retro-Racism and H&S have completely terminated any possibility of thought outside of the party-line. Is this EU sponsered or a UK phenomenom?
It has all come to pass and easy to make a case in the mind for sleepers supported by the Fabian Soc. Demos, Tavistock, Smith etc all held together now by Common Purpose. WHAT ABOUT COMMON PURPOSE?? – delivering to a completely demoralised nation, absolute State control.
I agree. We are fast approaching a tipping point one way or another. We could guess that Lisbon was plan A, parked for MSM consumers, actually being implemented anyway, so plan B, the Civil Contingencies Act will do. Today might be all the excuse they need.
The argument for cock-up against conspiracy is now very difficult to sustain because no Gvernment could be this incompetent so consistently for so long by mistake-surely?
I do wonder.
Guido
You are right – the only way to go is Gold BUT..
QE has a point if everyone does it – it inflates the debt away while not effecting the currency exchange – in other words, all currencies are worth nothing at the same exchange rate – its as if nothing happened!
It just means that one day, when someone works out the figures, they will see that the only currency to not take part in QE is the only money actually worth anything, and that country takes over the world – but that would never happen …
I wonder if this nonsense is really what is on the mind of the loonies in the hot seats?
Fucking hel Guido the screen keeps losing all the copy to the left, or am I just pissed?
would that by any chance be a new, er, worldwide monetary order? like… lol.
the current fractional reserve banking system with implicit perpetual inflation is inherently unstable and inevitably leads to periodic deflationary collapse. as a trader you will know that volatility is great for making money if you are wise to it. it would be all too easy to believe that the banking system had been designed this way for that purpose. not so good for the herd that gets suckered every time though.
Has anyone else noticed that http://www.order-order.co.uk has been taken by Labour List?!?!
LOL!
The use of a name, web address, or whatever likely to deceive, cause to divert customers, or deliberately seek to damage another’s business is an offence. For instance one cannot set up a Drapery business known as “Dolly’s” next door to an existing Drapery business called “Dolly’s Drapes”. It’s OK if the new business deals in producing “Dick Heads” as that is a different type of business.
Guido’s web address and Dolly’s http://www.order-order.co.uk, are to close to be an accident and Guido could successfully sue the prick for any money he doesn’t have.
In the German speaking countries this offence is clearly set out in law as “Berufs Schädigung”. Some years ago I successfully sued a competitor for a very similar offence.
Yup! Cheers!!
You’re probably using Internet Explorer
Margins work fine on FireFox
And Google Chrome
Slow there Mr Fawkes. Better go get order-order.org
harmen-pride ..you are rather boring you know
Nice to hear Hayek mentioned. First read the book back in my student days.
However, Hayek’s Standard will not be practical. It relies on a system of trust. A trust that it will retain it’s value. Just like we all trusted that the Bank of England was independent, when in fact the Chancellor was packing it full of his stooges.
I’m doing it right now.
It’s 7.30pm, on the night before the riots start, Obama has just flown overhead on his way to land at Stansted (In got my cock out and waved it at him) and you are already off your fucking face.
Nice work Beast.
I’m at Moorgate tomorrow if you need me to buy you another pint of Creme de Menthe/ Aldi bleach
And here was me thinking you were a Malibu man – must revise my assumptions about Woman’s Hour listeners :)
“on the night before the riots start”
What riots? What information do you have? I’m sure the Government and Police would be very interested…
FUCK OFF DEREK!!!!!
http://www.telegraph.co.uk/news/newstopics/politics/5084584/Caroline-Flint-Europe-minister-hasnt-read-Lisbon-Treaty.html
Bloody hell, they don’t even bother lying any more!
Another NuLow from NuLabia.
Good to see the usual level of balanced and original comment from CCTV Star.
When is ZaNu going to sack McBust?
Derekdraperisakunt is still free though
http://www.guardian.co.uk/science/2009/mar/12/mind-reading-brain-scans-memories
^ fucking hell, let’s hope Jacqboots doesn’t see this
CCTV Star, Britain is one of the most liberal societies in the world. If you hate it so much why don’t you move to Communist China or North Korea?
Why move to North Korea when North Korea is moving here courtesy of ZaNu Labour?
Have you all forgotten Black Wednesday? The British public haven’t!
On a more serious note, what do you think Gordon Brown and Barack Obama will be looking to get out of the G20? Will their “Global New Deal” succeed?
Black wednesday cost us 3 billion Brown has just spent 1.5 trillion that he hasn’t got.
In the great scheme of things black wednesday is now looking like a minor headache and the doctor prescribed aspirin whereas gordon’s little spendfest is looking like major heart by-pass performed by a homicidal maniac with a degree in tree surgery.
Or rather white wednesday – as it got us out of that other laughable experiment in unsound money – the ERM.
The cyclops will be satisfied if he can get his lips round the Obamamessiah’s thick tool.
Strangest thing – ZaNuLabour haven’t mentioned “Black Wednesday” for some time now….
I wonder why that is ????
That’s because ZaNu Labour supported the ERM adventure.
[...] March, 2009 · No Comments ….and who’s doing it these days: and who’s not planning to…very interesting [...]
If any of you knew anything about economics you’d know the difference between QUANTITATIVE EASING and printing money. We are not printing more money, as Darling said in January.
http://www.guardian.co.uk/commentisfree/2009/mar/08/will-hutton-recession-money
There’s absolutely no danger of becoming like Weimar or Zimbabwe. I suppose you thought the world would end on 1/1/2000 as well?
Have you heard Alan Johnson has announced free prescriptions for cancer sufferers?
“Under Labour, the NHS has made real progress in combating cancer. But the Tories would put this at risk. They are committed to scrapping the waiting time guarantees that have meant faster diagnosis and treatment for people with cancer and suspected cancer. Labour will never abandon people during tough times.”
http://www.labour.org.uk/alan_johnson_announces_free_prescriptions_for_cancer_sufferers
Excellent news!
Good to see that Labour is still the party that looks after the interests of the ordinary man and womyn – unlike the Tories who will give £200,000 to the 3,000 richest millionaires in the country!
Absolute bollocks – A surgeon put your lot in its place during “any questions” some time ago. Cancer survival has consistently improved over the years whoever has been in government because of medical advances and dedicated doctors and has had absolutely nothing to do with Politicians.Hijacking the agenda by claiming that Labour is solely responsible for this is fucking immoral and a lie you sick sod.
Three labour twats demolished by sound, honest information – well done Rob. Now get back into that Spit and shoot down some more!
Dear Mr Brown
I understand that unemployment is a price well worth paying, its only right.
Please use my savings to save the banks and thank you for the hand outs.
Just a shame they have to kill some others earlier with C.Diff to balance the books.
OK – GO FUCK!!!!!!
Its all very well posting one stupid comment – but when you post the follow ups its just stupid!!!!
HOW MUCH HAVE YOU BEEN DRINKING?
Since your glorious New Labour got into power, I can’t get a proper job – cos although I’m older than all your horrible wimmin, I’m a damn sight more attractive!!!!
You really don;t like intelligent attractive women in the Labour Party!
Paper money eventually returns to its intrinsic value – ZERO
-Voltaire
Unfortunately, we will discover just how true this maxim is in the following years.
There is no greater evil than a central bank with monopoly control over a nation’s money
“The end is nigh!” “We’re all doomed!”
LOL! Sometimes I think you people actually WANT a crisis.
What do you mean ‘You People’?!
Well you lot have managed to sort out quite a few crises haven’t you Gordon/Harman/Labour/Galloway/Wanker_Pride?
Dim_Pride said: “Sometimes I think you people actually WANT a crisis.”
You mean you don’t think we actually already have a crisis?
LOL! Sometimes I think you people actually WANT a crisis.
H says:
March 31, 2009 at 10:09 pm
What do you mean ‘You People’?!
Are you talking black, white, blue purple, yellow people?
Or Straight, gay , lesbian, tran
or British , European, american, Australian
Please – I need to know who ‘you people’ are!!!!
First bit should’ve been in quotes!!!!
“The end is nigh!” “We’re all doomed!”
LOL! Sometimes I think you people actually WANT a crisis.”
H says:
March 31, 2009 at 10:09 pm
What do you mean ‘You People’?!
Are you talking black, white, blue purple, yellow people?
Or Straight, gay , lesbian, tran
or British , European, american, Australian
Please – I need to know who ‘you people’ are!!!!
Tony Blair is being tipped to achieve his ambition of becoming the first full-time President of Europe, with the Wicked Witch as his First Lady. If that isn’t incentive enough for the Tories to promise a referendum on getting out of the EU once and for all, I don’t know what is.
Littlejohn Daily Mail
Littlejohn’s treatment of “Independent” columnist Johann Hari is also shocking.
Jonathan Hari is great.
So is Polly Tonybee
So is Gordon Brown.
And that Labour bloke who claims his grot films on his wife’s expenses.
They’re so great i’d like to put them all in my cellar.
And then brick it up.
Jonathan Hari is great.
So is Polly Tonybee
So is Gordon Brown.
And that Labour bloke who claims his grot films on his wife’s expenses.
Anyone who loves Labour is fantastic
God Save St Gordon
Jacqui is the most attractive woman I have ever seen
I love Harriet
What other bollocks can I say – hopefully the end is nigh
Until someone has the intellectual courage to cite central bank induced booms and busts as the source of our troubles, and not the lack of regulation of the banking industry, expect more Keynesian rubbish to follow. Austrian School economics is the way forward to all those who realise that the flaws of central planning apply just as much to money and credit as they do to factories and farming.
It wouldn’t be so bad if Tosser Brown and his crew did follow Keynesian economics. Keynes one simple idea was that the government saves money in the good times, so it can spend in the bad times, to keep the economy moving. It’s not rocket science.
Unfortunately this band of tartan crooks forgot the first bit, so they spend money they haven’t got in the good times, and then even more in the bad!
Kill the infidels!
I’ve been trying to jog the old grey matter in trying to remember who this cut-and-paste prick Harman Pride (and the rest of his retarded family) reminds me of.
The penny dropped a few moments ago and I’m sure it’s that prick “Dirty Rotten Socialist” that plagued several of the political blogs many moons ago until he was eventually banned. The only thing that made me hesitate was the spelling, but I suppose he’s learned to use a spell-checker. But there again, with cut-and paste from Labour propaganda cog sheets, he doesn’t require an education.
No All_The Prides(Harman/Brown/Socialist) is one person, an employee of LabourList, whose function it is to post here. He/She uses a set of standard paragraphs thus producing reams of drivel without costs of thoughtful content. He/She/It is of dubious sexuality.
That any visitor here takes the comments seriously is a such of amazement to me and amusement to He/She/It.
David Aaronavitch is the biggest cock on the planet. Fact.
Has he? I bet some black blokes would dispute that?
Eh missus am I racist or wot?
“Lord” Myners is shown up to be a fucking liar. What a fucking surprise.
ANOTHER WARNING FOR THE CUCKOO!!!!!!!!!
OECD WARN UK ECONOMY WILL CONTRACT 3.7% THIS YEAR AND CONTINUE IN 2010!
British Chancellor Gordon Brown today received a fresh warning that he faces the prospect of raising taxes or cutting public spending if he is to bring the British government’s finances under control.
The Paris-based Organisation for Economic Cooperation and Development said that unless tax revenues picked up, the rising government deficit may force the Mr Brown to act.
“In the absence of a spontaneous rise in taxes, additional action may be required to achieve a decisive and sustainable reduction,” it said in its latest twice-yearly Economic Outlook.
The warning came as Mr Brown is preparing to deliver his pre-Budget report – setting out his own assessment of the state of the public finances – to the British House of Commons on Thursday.
The Treasury insisted the Chancellor would still meet his own fiscal rules on tax and spending.
NOW ALL OF YOU GOVERNMENT LACKEYS- PLEASE GO AND DRIVE OFF OF BEACHY HEAD ASAP!
you are tiresome-posting infinite crap.
we are sick of your party ruining our country
“All our plans are fully affordable,” a spokesman said.
The OECD also said that despite low inflation and signs the economy was slowing, the Bank of England may still have to return to raising interest rates over the course of the next year.
On a more optimistic note, the OECD said the UK economy appeared less vulnerable to a housing market crash than in the past.
“Instability stemming from the housing market remains a risk, although it may be smaller than at previous house price peaks,” it said.
The Bard seemed to have the whole thing sown up centuries ago thus:
“Gold? Yellow, glittering, precious gold?
No, Gods, I am no idle votarist! …
Thus much of this will make black white, foul fair,
Wrong right, base noble, old young, coward valiant.
… Why, this
Will lug your priests and servants from your sides,
Pluck stout men’s pillows from below their heads:
This yellow slave
Will knit and break religions, bless the accursed;
Make the hoar leprosy adored, place thieves
And give them title, knee and approbation
With senators on the bench: This is it
That makes the wappen’d widow wed again;
She, whom the spital-house and ulcerous sores
Would cast the gorge at, this embalms and spices
To the April day again. Come, damned earth,
Thou common whore of mankind, that put’st odds
Among the rout of nations.”
Methinks he was a canny soothsayer too!
If not by printing it how is the government going to create the money to buy back the government and commercial paper ? As for doing nothing it a fucksight better than making it worse. If the idiot prides like it so much perhaps they would care to pay children and grandchildren’s share. Oh bollocks to global who designed the U.K. regulatory system who forced our institutions to trade in rubbish derivatives etc etc ?
I think HMG know perfectly well that they’re going to stoke inflation. They don’t want to admit it for obvious political reasons, but it’s their (not our) only hope.
Labour spent and taxed in the boom years as though they would never end. What are they going to do now that they have ? The kitty’s empty.
There’s only one option open to them. They’ll keep spending and start printing. Consider their position. With unemployment projected to rise to three million, they’ll be worried about keeping order among the youth of our rainbow nation. No way can they let up on the outreach workers by cutting spending, but who will pay for them as tax receipts drop ?
The oldies will – especially those who were employed by the private sector. They don’t fight. They probably voted Tory anyway. Many of their company pensions have been destroyed, but there are still a fair few impacting the bottom line with their future pension liabilities. Just print money, let inflation rip, and zap ! those future pension liabilities and other debts are maybe halved in real terms.
That solves the problem of paying the outreach workers, it ensures more donations and directorships from grateful capitalists – and it also makes a lot of pensioners, with their pensions eroded by inflation, once again dependent on the State. It’s a win for everyone – except the pensioners, but who cares about them ? They don’t riot !
Why gold standard? Russia is now etwinded with OPEC as is Brasil, why not a G20 ambush for a new oil backed currency, that is after all whats been proping up the US$
Printing money is a tacit admission of just how bad things are: there is now more debt in the system than there is cash to repay the debt. Which means in turn that if we gave the banks all our houses and all our businesses we still wouldn’t have repaid all the debt in the system. So the system is now completely broken as Gordon and his gang of morons are a bunch of historians that don’t understand basic arithmetic let alone the term “fractional reserve banking”.
Printing money is now the only way to patch up the broken system. But it sure isn’t an easy way out. If the printed money was used to simply take all the debt in the system and halve it, maybe it would be because for each £ of printed money there would be a £ of debt cancelled leaving the money supply as is, but in fact the new cash will simply be squeezed into the banking system direct leaving the personal, corporate and government debt intact. With all the debt left unpaid and all the new “noddy” cash added to the system the total amount of money will grow causing inflation. This scheme is therefore so inefficient at directing the new cash where it is needed it will require simply enormous amounts of new cash in the hope of getting the debt paid down – and thus simply enormous levels of inflation. We will be thrown back to the 70s. Inflation at 20% for ten years or more and workers on the streets demanding more money at a time when unemployment is rising leading to collapsing output, a chronic balance of payments deficit and yet more debt that can only be paid for by printing yet more £. Zimbabwe II? You’d better believe it.
It is a disaster of epic proportions that only a political party as incompetent as the Labour party could manage to create in just ten years. The only silver lining to this black-as-night cloud is that our head of state is now so concerned about the situation that she has called a meeting with the BoE governor. We can only hope she is seriously considering dissolving Parliament and calling for a new election in the Autumn when Parliament relinquishes its power back to her at the start of the Summer recess. God knows we need all the help we can get to rid ourselves of this power-crazed muppet before he is allowed to visit any more damage on us in his mad aim to cling to power by all means possible.
[...] is a strange post on Guido’s blog suggesting that even the IEA is advocating quantitative easing (QE). He says [...]