Jump to content

Are We Heading For A Recession Like In The 30s?

Recommended Posts

Imagine you are a dictator and you want arms or nuclear missiles and oil, etc. You can afford anything by just printing money. If you are a dictator, who is going to stop you or even know. The country gaining your filthy lucre won't care or know, so long as they are paid. 

Share this post


Link to post
Share on other sites
On 18/05/2020 at 23:42, apelike said:

That reads like a capitalist excuse not to print money.

If  moneys in short supply the only winner is a bank,because youl need to loan it,at interest.

If banks cant lend money with rates applied,they just become money storage tanks and the financial system would start to implode,therefore its advantageous to keep money in short supply as an economy could easily overheat if everyone could afford everything and wanted it there and then.

Its a bent system that enslaved populations for two milleniums,but the entire system has never looked more vulnerable than in recent months,when nations,particulary in europe,have become reliant on the lowest earners.

Fascinating times as this virus may well be here to stay for many years ahead and wreak far more havoc,creating a far more level field financialy for those at the poor end,prior to the virus

Edited by staninoodle

Share this post


Link to post
Share on other sites
11 hours ago, staninoodle said:

That reads like a capitalist excuse not to print money.

No, it's a basic economic reason as to why its a bad idea.

 

Quote

If  moneys in short supply the only winner is a bank,because youl need to loan it,at interest.

If banks cant lend money with rates applied,they just become money storage tanks and the financial system would start to implode,therefore its advantageous to keep money in short supply as an economy could easily overheat if everyone could afford everything and wanted it there and then.

I think you will find it is the other way around and that is why interest rates are so low as it give no incentive to save but plenty to borrow and spend and get in debt thus enslaving people with debt. Something Maggie realised all to well.

 

Quote

Its a bent system that enslaved populations for two milleniums,but the entire system has never looked more vulnerable than in recent months,when nations,particulary in europe,have become reliant on the lowest earners.

The nations in Europe (EU) are reliant on low earners as they are the ones that also pick the fruit and veg for them which we buy cheaply. The EU farmers are subsidised by the EU in order to produce that cheap food, which really isn't cheap because it subsidised by the same people who buy it. The EU then have to keep getting new poorer nations to join to keep it going and the EU call that food security. Without going off topic too much, in the Brexit threads I have asked those pro-eu and the remainers what will happen if that cheap labour dries up and no one would or could answer, it seems it was an impossible scenario. This virus will now give us some idea if it stays around for much longer.

 

Edited by apelike

Share this post


Link to post
Share on other sites
18 hours ago, apelike said:

No, it's a basic economic reason as to why its a bad idea.

 

I think you will find it is the other way around and that is why interest rates are so low as it give no incentive to save but plenty to borrow and spend and get in debt thus enslaving people with debt. Something Maggie realised all to well.

 

The nations in Europe (EU) are reliant on low earners as they are the ones that also pick the fruit and veg for them which we buy cheaply. The EU farmers are subsidised by the EU in order to produce that cheap food, which really isn't cheap because it subsidised by the same people who buy it. The EU then have to keep getting new poorer nations to join to keep it going and the EU call that food security. Without going off topic too much, in the Brexit threads I have asked those pro-eu and the remainers what will happen if that cheap labour dries up and no one would or could answer, it seems it was an impossible scenario. This virus will now give us some idea if it stays around for much longer.

 

Can't remember that - but France is pretty self sufficient in food and produces about 20% of the EU needs.

 

https://www.nationsencyclopedia.com/Europe/France-AGRICULTURE.html

 

Pretty much all done by French people - many in agricultural co-ops. Strawberry and asparagus season round here - not a foreign worker in site.

Share this post


Link to post
Share on other sites
Guest makapaka

You can’t just print money folks.

 

the Germans used to paper their houses with money after World War One.

 

unless you want to take £3000 in notes to Asda to buy 4 cans of beer and a microwave curry anyway.

Share this post


Link to post
Share on other sites
45 minutes ago, Longcol said:

Can't remember that - but France is pretty self sufficient in food and produces about 20% of the EU needs.

While that may be the case it is and always has been the largest receiver of EU CAP funds at around 9.1 billion euros in 2019. That's what I mean about food being subsidised by the very people who buy it so it gives a false impression of the real cost.

Share this post


Link to post
Share on other sites
2 minutes ago, apelike said:

While that may be the case it is and always has been the largest receiver of EU CAP funds at around 9.1 billion euros in 2019. That's what I mean about food being subsidised by the very people who buy it so it gives a false impression of the real cost.

Makes decent food affordable to people on low incomes and basic pensions.

Share this post


Link to post
Share on other sites

Just seen the news, the government has borrowed £62 billion in April...

Where do they get this money from (who lends it us).

Share this post


Link to post
Share on other sites
4 hours ago, Padders said:

Just seen the news, the government has borrowed £62 billion in April...

Where do they get this money from (who lends it us).

In simple terms the BOE lend some, in some circumstances the IMF but in most cases its from investors who buy up gilts and bonds created to give the government more income. Those gilts and bonds then provide interest for the investors every 6 months till it matures and is fully paid back. They are popular with insurance companies, pension funds and the BOE also buy them.  

Share this post


Link to post
Share on other sites
12 hours ago, Padders said:

Just seen the news, the government has borrowed £62 billion in April...

Where do they get this money from (who lends it us).

The 1976 IMF crisis forced James Callaghan's Labour Party government to borrow £2.3 billion (£10.2 billion in 2019) from the International Monetary Fund (IMF), at the time the largest loan ever to have been requested from the IMF.

These days its only big news if its the Labour party in the s***

 

Share this post


Link to post
Share on other sites
12 hours ago, El Cid said:

The 1976 IMF crisis forced James Callaghan's Labour Party government to borrow £2.3 billion (£10.2 billion in 2019) from the International Monetary Fund (IMF), at the time the largest loan ever to have been requested from the IMF.

These days its only big news if its the Labour party in the s***

 

Do you mean the Labour Party that was going to bankrupt the country, with its 2019 general election manifesto.

Share this post


Link to post
Share on other sites
On 20/05/2020 at 17:05, poppet2 said:

Imagine you are a dictator and you want arms or nuclear missiles and oil, etc. You can afford anything by just printing money. If you are a dictator, who is going to stop you or even know. The country gaining your filthy lucre won't care or know, so long as they are paid. 

You don’t account for the exchange rate.  If you print money you devalue that currency so it’s worth less in other markets.  
 

If that worked, it wouldn’t just be dictators that did it but every country all the time.

Edited by Arnold_Lane

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.