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create a situation where by peeps have some disposable income and they will dispose of it that is called demand............demand requires supply that creates jobs which generates more tax revenues which puts more liquidity in the ecconomy and you've got your self a positive cycle of ecconomics going instead of this negative cycle.........................problem solved
"heads off to No 11 Downing Street"
And when the oil runs out?
we'll have developed chicken shit fuel by then which will be much cheaper than oil
create a situation where by peeps have some disposable income and they will dispose of it that is called demand............demand requires supply that creates jobs which generates more tax revenues which puts more liquidity in the ecconomy and you've got your self a positive cycle of ecconomics going instead of this negative cycle.........................problem solved
"heads off to No 11 Downing Street"
And when the oil runs out?
we'll have developed chicken shit fuel by then which will be much cheaper than oil
create a situation where by peeps have some disposable income and they will dispose of it that is called demand............demand requires supply that creates jobs which generates more tax revenues which puts more liquidity in the ecconomy and you've got your self a positive cycle of ecconomics going instead of this negative cycle.........................problem solved
"heads off to No 11 Downing Street"
The problem here is though. "The bigger the boom the bigger the bust".
The banks being capitalist buggers saw a bit of a loop hole.
Things were going well in the economy. If I deposit £1 in a savings account the government allows the bank to borrow out £10. Not bad work if you can get it. Thats £10 they dont have. But the banks not being happy with that, would take my 10k as a deposit and lend you 100k. Instead of waiting 25 years to get their 150k or so back, they sell lots of mortgages together in a bond (the likes of mine and your pension goes here). So I deposit 10k, they lend 100k, the get 130k back for the bonds. Not they can lend out 10 * 130 k. And so on. I think it works something like that. Maybe not quite that exponential but something like that.
So when the goings good, the banks are making a mint.
Harry consumer in the meantime thinks his house is worth 300k when he paid 100k. Oh I will withdraw some money from my house and get a flash car, go on a few nice holidays, get some work done on the house etc, pay off my unsecured debt etc. He is funding the economy based on his over inflated house.
The banks started getting weary as they sold far too many risky mortgages. They stopped lending money to each other as they started feeling edgy. The bonds which they still had some liability one were getting defaulted left right and centre. Stock markets, currencies start dropping. Its harder to get a mortgage. Harry consumer notices his "normal" spending habits cant continue. He starts reigining in his spending. Jobs start going on the high street. Less tax is getting paid. The public sector spending gets tightened. Public sector spending on private sector projects get cut. More private sector jobs go. Harry consumer goes into negative equity. Harry consumers mortgage goes up when his fixed rate comes to an end, and banks are still scared to lend. Harries pension fund hits the floor and Harry is on the street.
Inflation starts rising. The government puts interest rates to 15% to stave off inflation (even though its futile, they need to stop printing money).
All down to the greedy banks and the government.
*Disclaimer I dont know what I am talking about... but it might work some thing like that
create a situation where by peeps have some disposable income and they will dispose of it that is called demand............demand requires supply that creates jobs which generates more tax revenues which puts more liquidity in the ecconomy and you've got your self a positive cycle of ecconomics going instead of this negative cycle.........................problem solved
"heads off to No 11 Downing Street"
And when the oil runs out?
we'll have developed chicken shit fuel by then which will be much cheaper than oil
And when Avian flu arrives? ;-)
you a politician ??
No - a pessimist.
You know on a serious note we never used to have inflation it's a modern day scurge when i was a lad the only time inflation was mentioned was in connection with blowing up your bike tyres..............but thats progress for you :>)
create a situation where by peeps have some disposable income and they will dispose of it that is called demand............demand requires supply that creates jobs which generates more tax revenues which puts more liquidity in the ecconomy and you've got your self a positive cycle of ecconomics going instead of this negative cycle.........................problem solved
"heads off to No 11 Downing Street"
And when the oil runs out?
we'll have developed chicken shit fuel by then which will be much cheaper than oil
And when Avian flu arrives? ;-)
you a politician ??
No - a pessimist.
You know on a serious note we never used to have inflation it's a modern day scurge when i was a lad the only time inflation was mentioned was in connection with blowing up your bike tyres..............but thats progress for you :>)
