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

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But if nobody knew a country was printing money for large projects, how could devaluation be calculated? 

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Because, @poppet2, the money for  ' large projects' as you call them isn't printed - it is all done by electronic transfer, and therefore traceable

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5 hours ago, poppet2 said:

But if nobody knew a country was printing money for large projects, how could devaluation be calculated? 

Would it matter to the average man in the street?

It may affect pensions that are invested abroad, holiday money and the wealthy.

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On 25/05/2020 at 14:42, RollingJ said:

Because, @poppet2, the money for  ' large projects' as you call them isn't printed - it is all done by electronic transfer, and therefore traceable

But all money is printed first, even the large amounts that are transferred. That printed money is then transferred to a government bank account and electronic transfers go from there. 

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4 minutes ago, poppet2 said:

But all money is printed first, even the large amounts that are transferred. That printed money is then transferred to a government bank account and electronic transfers go from there. 

That’s not the case.  Most money does not exist in the form of physical notes and coins.

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50 minutes ago, Arnold_Lane said:

That’s not the case.  Most money does not exist in the form of physical notes and coins.

Thank you - but you will never convince some people.

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8 hours ago, poppet2 said:

But all money is printed first, even the large amounts that are transferred. That printed money is then transferred to a government bank account and electronic transfers go from there. 

This is complete rubbish. Everything you have said here is wrong. 

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Economy will contract 11.5% in 2020 if world avoids a second wave of coronavirus. OECD forecasts deeper recession in UK than other rich nations.

Whilst listening to the Andrew Marr show this morning, there has been a survey which showed 64% of UK resesidents dont think the coming recession will affect them, I cannot dind a link. It will affect all except the very rich.

With Boris and Rishi both lying through their teeeth and saying that there will be a V shaped bounce back, people are not prepared for what is coming.

 

https://www.ft.com/content/d936d27f-9e2b-4e6a-91f4-3940d6bf64cb

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On 24/05/2020 at 11:31, Arnold_Lane said:

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.

Quantatitive Easing is printing money by another name, and has been going on spasmodically ever since the financial crash of 2008. Debt can also be written off by the banks if they so wish (and has been from time to time,) so money is not what it was and can be manipulated at will. We have been living with Fiat money for years.

 

However IMO the pandemic is really the calm before the storm. Post pandemic the problems will soon start to pile up into a perfect storm. A lot will depend on the way the government handles it, but tough times are undoubtedly ahead and will envelope more of the middle class as jobs disappear, and poverty increases. We no longer have a strong manufacturing base, we have allowed multinational corporations to dominate and dictate terms and our service industries are no longer what they were.

 

We're in a mess, but it is a chance to re-evaluate and decide what's important. It will take innovation, and strong, inspired leadership to get us through it. Whether this lot is up  to it remains to be seen. 

 

 

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9 minutes ago, Anna B said:

Quantatitive Easing is printing money by another name, and has been going on spasmodically ever since the financial crash of 2008.

Not really as to get that money the bank sells bonds to investors so a transfer of money actually takes place. The BoE and ECB has been doing that in the past and will be relying on that again to help them out of the current mess. Whether is actually helps the economy though is also debatable.

 

Edited by apelike

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12 minutes ago, Anna B said:

Quantatitive Easing is printing money by another name, and has been going on spasmodically ever since the financial crash of 2008. Debt can also be written off by the banks if they so wish (and has been from time to time,) so money is not what it was and can be manipulated at will. We have been living with Fiat money for years.

 

 

 

 

I know what quantitive easing is thanks.

 

I also know that fiat money includes coins and banknotes which have been used since the 11th century.

 

 

 

14 minutes ago, apelike said:

Not really as to get that money the bank sells bonds to investors so a transfer of money actually takes place. The BoE and ECB has been doing that in the past and will be relying on that again to help them out of the current mess. Whether is actually helps the economy though is also debatable.

 

Quite. It also wasn’t invented as some sort of cure to the 2008 Crisis like the above poster insinuates.

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23 minutes ago, Anna B said:

Quantatitive Easing is printing money by another name, and has been going on spasmodically ever since the financial crash of 2008. Debt can also be written off by the banks if they so wish (and has been from time to time,) so money is not what it was and can be manipulated at will. We have been living with Fiat money for years.

 

However IMO the pandemic is really the calm before the storm. Post pandemic the problems will soon start to pile up into a perfect storm. A lot will depend on the way the government handles it, but tough times are undoubtedly ahead and will envelope more of the middle class as jobs disappear, and poverty increases. We no longer have a strong manufacturing base, we have allowed multinational corporations to dominate and dictate terms and our service industries are no longer what they were.

 

We're in a mess, but it is a chance to re-evaluate and decide what's important. It will take innovation, and strong, inspired leadership to get us through it. Whether this lot is up  to it remains to be seen. 

 

 

Always enjoy reading your posts Anna, nice to see you back posting, hope your keeping well.

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