Here we go again - banking crisis 2.0?

[singularity]

If you are to be believed then a horde of Jewish shape shifting reptilian humanoid members of the Illuminati who are intent on drinking our blood, raping our women and eating our children.......all the while manipulating the people through oppression of our democracies using the domination of the central banking system and false flag operations.

Or was that through the Square Window...I forget!

A nightmare then

 

[The Halk]

The debt can never be repaid and is growing at a much faster rate than, the economy (this can be said to be true for several major economies)

That's absolutely false. Everything in your house of cards conspiracy theory that follows it is based on that...

The jitters in the Eurozone happen when the PIIGS interest rates approach 7%, which is broadly the figure that you claim they're already past.

And realistically what happens when it does get back up to that level? The northern Euro countries just commit themselves further, making sure it doesn't.

So what you're saying is utter ********.

 

[kwerk]

How on earth do you link those things together.

Arab spring due to QE in the UK, are you serious?

The majority of the inflationary bubble was not due to QE really it was due to raw commodity prices for lots of things being higher.

I work in an industry that is susceptible to a lot of these raw material (food based) and they are nothing to do with QE I can tell you that for a fact the vast majority have been due to crop issues due to adverse weather.

Its supply and demand not QE thats been causing the issues, a lot of the things you would claim are speculated on are not, they are advance contract purchased.

QE by the fed, and the backdoor euro bailouts.

It's commonly accepted that's what happened. I mean BOTH the Torygraph and Guardian say it. not a conspiracy theory in the slightest.

http://www.guardian.co.uk/business/2011/jun/29/how-world-paid-hidden-cost-america-quantitative-easing

http://www.telegraph.co.uk/finance/economics/8492078/How-the-Fed-triggered-the-Arab-Spring-uprisings-in-two-easy-graphs.html

 

[Mercenary Keyboard Warrior]

It's commonly accepted

I guess that depends what you read and where.

I still cannot get the connection between the Arab spring and the QE
All the QE really did was stop the massive crash that would have happened, the prices were already high.

Far more of the issue is the rapidly increasing population number on a planet with limited resources at the same time when the standard of living is in most places for most going up, hence they want more, and expect more.

Libya for example is a rich counry per capita, but the majority were treated terribly with very low living standards. They could easily afford the food and fuel if it wasn't being made too expensive by their own government. I use the term government loosely. Eventually they said enough. Egypt, Syria. Hell even the UK would have had similar but it was a much smaller element in the UK who feel down rather than the 90%+ some other countries have.

So many nations globally where there is poverty have a similar distribution of wealth, if not all in fact. Ie you can include UK/USA in that, we have people with food and fuel poverty yet we have absolutely no need to if we decided to distribute wealth and income in a different way.

The issue is not so much assets are overvalued here but that the ratio to the producing nations is so much higher. The average Chinese wage is going up faster than ours, they had property boom causing the government to try to reduce house price inflation. Once the balance reverts to a more sustainable one things will change.

There is no magic ratio between the prices of anything to anything else, including labour.

I still say the absolute best thing we in the UK can do is to reform and implement a radical house building strategy. Force land banks to be used or compulsory purchased, build decent houses nationally, use this to fund employment and to bring a soft devaluation to the housing prices over a long term 20-50 year period. The devaluation of housing should bring a low wage inflation situation where we will become more competative globally. The problem comes for those who bought at the peak, its not impossible to aid them out of the situation by reinstating something like MIRAS for those whos mortgage is higher than the value of the house they live in.

 

[singularity]

That's absolutely false. Everything in your house of cards conspiracy theory that follows it is based on that...

The jitters in the Eurozone happen when the PIIGS interest rates approach 7%, which is broadly the figure that you claim they're already past.

And realistically what happens when it does get back up to that level? The northern Euro countries just commit themselves further, making sure it doesn't.

So what you're saying is utter ********.

The interest rate just sets the time scale, if GDP is stagnant or falling yet debt is rising at anything between 5% and 15% how can the country possibly recover

Of course you can build in some magic theoretical growth 'next year'
The numbers don't work, the only hope is that growth eventually returns, but by then the debt burden may be so high that people see no improvement for years.

 

[kwerk]

What John F Kennedy had to say on the GDP/GNP:

"We will find neither national purpose nor personal satisfaction in a mere continuation of economic progress, in an endless amassing of worldly goods. We cannot measure national spirit by the Dow Jones Average, nor national achievement by the Gross National Product. For the Gross National Product includes air pollution, and ambulances to clear our highways from carnage. It counts special locks for our doors and jails for the people who break them. The Gross National Product includes the destruction of the redwoods and the death of Lake Superior. It grows with the production of napalm and missles and nuclear warheads.... It includes... the broadcasting of television programs which glorify violence to sell goods to our children. "And if the Gross National Product includes all this, there is much that it does not comprehend. It does not allow for the health of our families, the quality of their education, or the joy of their play. It is indifferent to the decency of our factories and the safety of our streets alike. It does not include the beauty of our poetry, or the strength of our marriages, the intelligence of our public debate or the integrity of our public officials... the Gross National Product measures neither our wit nor our courage, neither our wisdom nor our learning, neither our compassion nor our devotion to our country. It measures everything, in short, except that which makes life worthwhile, and it can tell us everything about America -- except whether we are proud to be Americans."

 

[nocturnal1974]

What John F Kennedy had to say on the GDP/GNP:

"We will find neither national purpose nor personal satisfaction in a mere continuation of economic progress, in an endless amassing of worldly goods. We cannot measure national spirit by the Dow Jones Average, nor national achievement by the Gross National Product. For the Gross National Product includes air pollution, and ambulances to clear our highways from carnage. It counts special locks for our doors and jails for the people who break them. The Gross National Product includes the destruction of the redwoods and the death of Lake Superior. It grows with the production of napalm and missles and nuclear warheads.... It includes... the broadcasting of television programs which glorify violence to sell goods to our children. "And if the Gross National Product includes all this, there is much that it does not comprehend. It does not allow for the health of our families, the quality of their education, or the joy of their play. It is indifferent to the decency of our factories and the safety of our streets alike. It does not include the beauty of our poetry, or the strength of our marriages, the intelligence of our public debate or the integrity of our public officials... the Gross National Product measures neither our wit nor our courage, neither our wisdom nor our learning, neither our compassion nor our devotion to our country. It measures everything, in short, except that which makes life worthwhile, and it can tell us everything about America -- except whether we are proud to be Americans."

Never a truer word spoken by the last 'president' of the USA

 

[scorza]

http://www.dailymail.co.uk/news/art...d-4-4bn-CEO-suspends-15bn-share-buy-back.html

Looks like Voldemort's losses have now doubled to £4.4bn.

 

[toshj]

They could have doubled to £4.4bio, as reported by credit traders at rival banks... could be a lot less, winding up the positions could end up being a lot more. Best to wait to hear what JPM say as opposed to their rivals...