The 2015 Popularity Contest (aka UK General Election )

[Ashtonian]

So why doesn't the goverenment instruct the BoE to issue another 30bn then they would not have to insist on 30bn in cuts.

The Beveridge Report of 1942, (which identified five "Giant Evils" in society: squalor, ignorance, want, idleness and disease) essentially recommended a national, compulsory, flat rate insurance scheme which would combine health care, unemployment and retirement benefits. Beveridge himself was careful to emphasize that unemployment benefits should be held to a subsistence level, and after six months would be conditional on work or training, so as not to encourage abuse of the system.[1] After its victory in the United Kingdom general election, 1945 the Labour Party pledged to eradicate the Giant Evils, and undertook policy measures to provide for the people of the United Kingdom "from the cradle to the grave."

Included among the laws passed were the National Assistance Act 1948, National Insurance Act 1946, and National Insurance (Industrial Injuries) Act 1946.

And there were some very clever people on the panel plus the host who agreed with her and she got a big round of applause.

If we print 30 billion more then the currency loses half its value making things cost twice as much and you still get paid the same amount.

In Germany in 1925/6 they had Hyper inflation and workers would be wheeling wheelbarrows full of money home after work because the currency became worthless.

 

[Pienaar's gloves]

The government issuing QE, brilliant, she needs to get her Certificate in Financial Studies.

I agree with her point, but people lacking educated opinions makes us all look like eejits.

That is the Bank of England's responsibility and one of the first things Gordon Brown made independent of government as chancellor in 1997.

 

[Tree13]

So why doesn't the goverenment instruct the BoE to issue another 30bn then they would not have to insist on 30bn in cuts.

And there were some very clever people on the panel plus the host who agreed with her and she got a big round of applause.

She was wrong. The panel were wrong. You do not appear to understand the medium- and long-tern impact of QE.

I suggest you read up on hyperinflation, particularly as manifeted in the Weimar Republic and, more recently, Zimbabwe. Printing more money is not the answer to this country's financial predicament.

 

[Tree13]

Printing money might provide a short-term filip but without a rise in productivity, all it does is increase inflation. If it didn't then the Bank of England could simply print as much money as they wanted and we'd all be on easy street.

The economy still appears so fragile, despite the increase in jobs that Osborne is so proud of, because productivity has gone down. Get that sorted and everything else would fall into place I'd have thought.

With QE, it primarily seems to benefit those with capital, as they're the ones that can actually borrow more, hence we've seen property owners do very nicely, but wages have stagnated because productivity hasn't risen.

Regarding National Insurance, it might have been affordable back in the 40s but it isn't any more. We're spending around 3 times on health and welfare what the government receives in NI.

A big chunk of that is in pensions, but given the demographics of the voting population, it'd be a brave politician that pledged to tack the retirement age to changes in life expectancy. We've seen how volatile even small proposed changes have been, let alone ones that are fair.

It gives us a situation whereby pensioners are pretty well off (thank you very much) and still insist on borrowing more money from future generations to pay for the nice things they get from the state today.

All of this. With knobs and bells on. And sugar on top.

The major problems are that the spends that most need adjusting have become political landmines: for example, pensions. Either the amount you pay into your pension per month, or the number of years you have to pay in, or the age at which you can claim it (or, more realistically, a combination of all three) simply has to change. The maths don't work out as the model currently stands. But the moment a party announces this as a policy, everyone over the age of 40 will vote against them.

 

[Bruce Wayne]

She was wrong. The panel were wrong. You do not appear to understand the medium- and long-tern impact of QE.

I suggest you read up on hyperinflation, particularly as manifeted in the Weimar Republic and, more recently, Zimbabwe. Printing more money is not the answer to this country's financial predicament.

I suppose my query regarding QE is quite how inflation has stayed as low as it has given the ridiculous amount of new money pumped into the global economy. I know oil going down must have helped, but what has stopped inflation soaring?

 

[roydo]

I suppose my query regarding QE is quite how inflation has stayed as low as it has given the ridiculous amount of new money pumped into the global economy. I know oil going down must have helped, but what has stopped inflation soaring?

Its not real money? And banks dont buy anything with it anyrate.

 

[toffee matt]

So why has over 100bn of it only benefited the top 5% in the country according to the office for national statistics, if they can print an extra £375bn then why not make it £400bn put a bit into the governments coffers to make savage cutting of Social Security not needed.

Printing vast amounts of money would cause hyperinflation and cripple the economy

 

[Walken]

I suppose my query regarding QE is quite how inflation has stayed as low as it has given the ridiculous amount of new money pumped into the global economy. I know oil going down must have helped, but what has stopped inflation soaring?

I get paid in euros, inflation is alive and well mate

 

[peteblue]

I get paid in euros, inflation is alive and well mate

*prays for Walken........

 

[The Esk]

I get paid in euros, inflation is alive and well mate

you need to

Mate....

 

[Walken]

you need to

Mate....

got an offshore account so I can transfer my funds as and when, but obviously can't wait forever, the frustrating thing is the latest hit is mainly down to a media driven fear of any form of left wing goverment

 

[The Esk]

I suppose my query regarding QE is quite how inflation has stayed as low as it has given the ridiculous amount of new money pumped into the global economy. I know oil going down must have helped, but what has stopped inflation soaring?

Firstly there has been real asset inflation (take London as an example). Retail inflation has not really occured because demand has not outstripped supply generally speaking.
Why? Because there has been no wage growth and more importantly the banks have not gone on a lending spree, they've used the money to shore up their balance sheets and pay inflated salaries to a very small number of their workforce.

 

[The Esk]

got an offshore account so I can transfer my funds as and when, but obviously can't wait forever, the frustrating thing is the latest hit is mainly down to a media driven fear of any form of left wing goverment

Usually sterling falls when a Labour Government is likely to be elected. Edit: realise you are referring to the € and Europe.

The € in my opinion is going to get much weaker v dollar in particular and sterling. Dont forget QE is only just starting in Europe, nearly finished here and finished in the US.

 

[Walken]

Usually sterling falls when a Labour Government is likely to be elected. Edit: realise you are referring to the € and Europe.

The € in my opinion is going to get much weaker v dollar in particular and sterling. Dont forget QE is only just starting in Europe, nearly finished here and finished in the US.

true enough, it was the potential greek change of goverment that prompted me opening a offshore account to manage my finances, as rightly or wrongly the scaremongering had already begun

 

[The Esk]

Its not real money? And banks dont buy anything with it anyrate.

It's real in the sense that the Government and banks benefit from the Bank of England buying Government bonds. Those purchases provide real cash and liquidity. The Government uses the bonds to fund their defecit cheaply and the banks have cash which they can hold, lend to each other or business/consumers.