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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 Bornblue)
    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.
    You asked what mistakes Gordon brown made.

    Here's a link where he tells everybody what mistakes he made.

    http://www.bbc.co.uk/news/business-13032013
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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.
    Why can't interest rates be cut lower?

    Why is devaluing the £ bad? (Note the £ has appeciated since the start of QE...)

    The bank could do helicopter money, but I suspect it'd just cut rates and do some standard QE.
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    (Original post by Bill_Gates)
    RIP UK Plc
    Brewdog is still seeing decent growth.

    Why'd you think my company is dead?
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    All debt and money problems are created by the banks and the capitalist society we live in.

    We will constantly be fluctuating between turmoil and cooling points. A recession is always bound to hit.
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    (Original post by Quady)
    Brewdog is still seeing decent growth.

    Why'd you think my company is dead?
    Company will be sold to China at the next annual meeting.
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    (Original post by Quady)
    Why can't interest rates be cut lower?

    Why is devaluing the £ bad? (Note the £ has appeciated since the start of QE...)

    The bank could do helicopter money, but I suspect it'd just cut rates and do some standard QE.
    Devaluing the pound brings long term benefits for us but lots of short term pain as we aren't an export nation


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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.
    Let the economy fail. Stop trying to prevent capitalism doing what it does. Let the people see what capitalism is about.

    The only way people will want systemic change is by letting them be crushed by the ills of capitalism. The greed that drives capitalism is harmful to the common person. You're always the last person to eat the cake and the first to be kicked off the cake table.

    The UK is in a terrible economic position hence why the Tories are trying to close the deficit. If there is another recession while the deficit exists, that's that mate. Debt restructuring and write offs needed. The IMF will butt faq the UK. There will be riots in the streets. Mass unemployment. Mass resentment etc...
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    (Original post by saayagain)
    Let the economy fail. Stop trying to prevent capitalism doing what it does. Let the people see what capitalism is about.

    The only way people will want systemic change is by letting them be crushed by the ills of capitalism. The greed that drives capitalism is harmful to the common person. You're always the last person to eat the cake and the first to be kicked off the cake table.

    The UK is in a terrible economic position hence why the Tories are trying to close the deficit. If there is another recession while the deficit exists, that's that mate. Debt restructuring and write offs needed. The IMF will butt faq the UK. There will be riots in the streets. Mass unemployment. Mass resentment etc...
    Pretty much!
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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.
    Oh yes they can. They will soon start taxing your savings instead of paying you 0.5% interest or whatever. It will soon become -0.5%

    Its nice to own gold
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    (Original post by Betelgeuse-)
    Oh yes they can. They will soon start taxing your savings instead of paying you 0.5% interest or whatever. It will soon become -0.5%

    Its nice to own gold
    Yep they're talking about getting rid of cash too. But the countries which have implemented negative interest rates are at INCREASED risk of bubbles i.e in Property, stocks etc.
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    (Original post by Bill_Gates)
    Yep they're talking about getting rid of cash too. But the countries which have implemented negative interest rates are at INCREASED risk of bubbles i.e in Property, stocks etc.
    Slowly moving to a cashless society it seems .. We are all ****ed if that happens lol
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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.
    well because of the level of QE that prevented a deeper recession in 07 you can expect the same for the next recession. Monetary economics usually follows a cyclical pattern of boom and recessions. The trough was not as deep as expected the last recession so the following peak and trough again may not be as steep.
    You are right, debt is high, interest are have been stagnant for 7 years at 0.5% and there is even deflation. There needs to be some technological advance to help bring about the next boom period that was witnessed in the naughties.
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    (Original post by Betelgeuse-)
    Slowly moving to a cashless society it seems .. We are all ****ed if that happens lol
    Pretty much as when downturns occur they implement capital controls so you can't get anything out.
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    (Original post by stochasticking)
    well because of the level of QE that prevented a deeper recession in 07 you can expect the same for the next recession. Monetary economics usually follows a cyclical pattern of boom and recessions. The trough was not as deep as expected the last recession so the following peak and trough again may not be as steep.
    You are right, debt is high, interest are have been stagnant for 7 years at 0.5% and there is even deflation. There needs to be some technological advance to help bring about the next boom period that was witnessed in the naughties.
    Technological advance? of course it's coming - automation. Putting more people out of productive work.
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    (Original post by Bornblue)
    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.
    Let's ask the man himself.

    http://www.bbc.co.uk/news/business-13032013
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    (Original post by paul514)
    Devaluing the pound brings long term benefits for us but lots of short term pain as we aren't an export nation

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    I'd actually adopt a strong pound goal myself. As much as people think devaualuation is the answer to exports lets remembers that the Mark and Franc (Swiss) were and are some of the strongest currencies in the world and yet both nations had and have trade surpluses (the Euro is only around 15% weaker than the Mark if Germany left now according to estimates). It's far more about economic management than weakening the currency if you want the high tech exports in my opinion.
 
 
 
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