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WHEN the next recession arrives what can the Government/Bank of England do? watch

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    (Original post by Rakas21)
    Just a note but interest rates can go negative. It's not very practical though.
    Would that lead to a run on the banks?

    I mean, presumably, negative interest rates means that I'd actually be charged/punished for parking my money in a bank. So I'd want to take it all out and stuff it in the mattress instead. Wouldn't everybody do the same?

    Just thinking aloud.
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    (Original post by Howard)
    Would that lead to a run on the banks?

    I mean, presumably, negative interest rates means that I'd actually be charged/punished for parking my money in a bank. So I'd want to take it all out and stuff it in the mattress instead. Wouldn't everybody do the same?

    Just thinking aloud.
    No run because some people would absorb the charge (current accounts are even not all free) but yeah, you weaken monetary policy.
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    (Original post by United1892)
    I don't know. QE would obviously be used, the rest is variable,
    That EU 55 million pounds per day is starting to look more satisfying
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    (Original post by Gears265)
    That EU 55 million pounds per day is starting to look more satisfying
    What?
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    RIP UK Plc
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    The title thread reminds me of this movie. Did anyone watch it?

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    (Original post by Bill_Gates)
    WHEN the next recession arrives what can the Government/Bank of England do?

    - UK government debt is LARGE
    - Interest rates are already at record lows for 8 odd years can't go lower
    - Trade deficit is high
    - QE has only propped up existing assets, more QE will further devalue the £

    What tools can they use/have available realistically? or will this be the ultimate recession/depression.
    It's a pretty stupid question as it depends on timing.

    If it was now 1 of 2 things happen.

    1 we can't do anything as it is a big uk recession. There is about a 0.0000000000000001% chance of this happening. (Yes I'm taking the piss with the number)

    2. It is another global crisis and this means either the under lying problem is tackled (lol) or the debts everywhere just get much higher which is accepted as everyone does it.


    If it's 10 years down the line they will just do the same as 2008


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    No doubt it will be Gordon Brown's fault for spending money on schools and hospitals.
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    (Original post by paul514)
    It's a pretty stupid question as it depends on timing.

    If it was now 1 of 2 things happen.

    1 we can't do anything as it is a big uk recession. There is about a 0.0000000000000001% chance of this happening. (Yes I'm taking the piss with the number)

    2. It is another global crisis and this means either the under lying problem is tackled (lol) or the debts everywhere just get much higher which is accepted as everyone does it.


    If it's 10 years down the line they will just do the same as 2008


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    How's it a pretty stupid question? All the BOE members/ Economists are discussing it. I won't be reading the rest of your post.

    Useless
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    (Original post by Bill_Gates)
    How's it a pretty stupid question? All the BOE members/ Economists are discussing it. I won't be reading the rest of your post.

    Useless
    For reasons already stated.

    Useless


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    it will be painful.
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    (Original post by Bill_Gates)
    WHEN the next recession arrives what can the Government/Bank of England do?

    - UK government debt is LARGE
    - Interest rates are already at record lows for 8 odd years can't go lower
    - Trade deficit is high
    - QE has only propped up existing assets, more QE will further devalue the £

    What tools can they use/have available realistically? or will this be the ultimate recession/depression.
    (Original post by Bill_Gates)
    WHEN the next recession arrives what can the Government/Bank of England do?

    - UK government debt is LARGE
    - Interest rates are already at record lows for 8 odd years can't go lower
    - Trade deficit is high
    - QE has only propped up existing assets, more QE will further devalue the £

    What tools can they use/have available realistically? or will this be the ultimate recession/depression.
    They will cut benefits, cut public spending making public services shoddy and cut Council budgets in the poorest areas, cut taxes for the richest and large businesses, not go after businesses evading tax and sell state assets to pay for it all
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    (Original post by ZZTop1)
    They will cut benefits, cut public spending making public services shoddy and cut Council budgets in the poorest areas, cut taxes for the richest and large businesses, not go after businesses evading tax and sell state assets to pay for it all
    Yep that's what's currently happening. All FOR SALE to China whilst killing off those at the bottom. Experts.
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    QE worked out well untill the markets got their **** together after having a systematic meltdown, I wish automatic trading would be banned worldwide, the dream boys.
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    (Original post by Bornblue)
    No doubt it will be Gordon Brown's fault for spending money on schools and hospitals.
    Probably not.

    He wouldn't have been the chancellor of the exchequer who.

    Borrowed money excessively in good times.

    Sold off uknassets a bargain basement prices.

    Promoted legislation to allow the crash to happen in the first place.

    Not sent troops off to war and refused to buy the necessary shipment to keep them alive.
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    Make lots of steel workers redundant assuming there will be any left.
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    (Original post by Maker)
    Make lots of steel workers redundant assuming there will be any left.
    Steel is not economically viable for a nation like the uk. Im not surprised its failing

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    (Original post by MatureStudent36)
    Probably not.

    He wouldn't have been the chancellor of the exchequer who.

    Borrowed money excessively in good times.

    Sold off uknassets a bargain basement prices.

    Promoted legislation to allow the crash to happen in the first place.

    Not sent troops off to war and refused to buy the necessary shipment to keep them alive.
    Yet the conservatives backed labour's spending plans pound for pound, promising to borrow just as much.

    The tories have sold off UK assets at bargain basement prices too - the Royal Mail for starters.

    Promoted legislation to allow the crash? The crash happened because of the collapse of Lehman Brothers in wall street. The crash happened because of market de-regulation - that the conservative were calling for more of. Do tell me which piece of legislation Gordon Brown promoted that led to this?
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    (Original post by Bornblue)
    Yet the conservatives backed labour's spending plans pound for pound, promising to borrow just as much.

    The tories have sold off UK assets at bargain basement prices too - the Royal Mail for starters.

    Promoted legislation to allow the crash? The crash happened because of the collapse of Lehman Brothers in wall street. The crash happened because of market de-regulation - that the conservative were calling for more of. Do tell me which piece of legislation Gordon Brown promoted that led to this?
    Let's ask the man himself.

    http://www.bbc.co.uk/news/business-13032013
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    (Original post by MatureStudent36)
    Let's ask the man himself.

    http://www.bbc.co.uk/news/business-13032013
    Quoting a link rather than offering an explanation is lazy and misleading.

    I'll ask again, which piece of legislation did Gordon Brown pass that CAUSED the collapse of Lehman brothers?

    The de-regulation was a mistake yes, but a.) that did not cause the crash and b.) the tories were calling for even more de-regulation at the time.
 
 
 
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