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    (Original post by chaotik_mind)
    No. You'll see when the economy collapses.
    Apparenty I will see the four hoursemen too :P

    A simple point but surely we couldnt have progressed to this level economically with money tied to the amount of gold a country owned?

    There isn't enough gold to go round or gold would be stupidly expensive.
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    (Original post by Quady)
    Apparenty I will see the four hoursemen too :P

    A simple point but surely we couldnt have progressed to this level economically with money tied to the amount of gold a country owned?

    There isn't enough gold to go round or gold would be stupidly expensive.
    No horsemen :P

    http://www.financialsense.com/fsu/ed...2008/0917.html

    http://seekingalpha.com/article/1096...le_lb_articles
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    (Original post by chaotik_mind)
    No horsemen :P

    http://www.financialsense.com/fsu/ed...2008/0917.html
    I don't quite understand this (and its not because I am dumb)

    Its premise is wrong.

    Cash is worth the same (or even fractionally higher) than it was since x years ago.

    Yes one dollar bought more 40 years ago than today, but that dollar had a yeild attached to it, it hasn't sat there stagnant.

    Thats like saying shares in the FTSE are worth less today than in '03 when FTSE was at 4,300.

    Or am I missing something?
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    Lets put it another way, its planned

    Notice how youre being very slowly eased into this recession, look at the little things that are going on

    If they wanted they could tell you tomorrow or on wednesday that the dollar collapsed but people would go nuts
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    (Original post by roots)
    Lets put it another way, its planned

    Notice how youre being very slowly eased into this recession, look at the little things that are going on

    If they wanted they could tell you tomorrow or on wednesday that the dollar collapsed but people would go nuts
    huh?
    Anyone can see if the dollar collapses, its called an FX market
    and the dollar has done ok in the last 3 months
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    (Original post by roots)
    Lets put it another way, its planned

    Notice how youre being very slowly eased into this recession, look at the little things that are going on

    If they wanted they could tell you tomorrow or on wednesday that the dollar collapsed but people would go nuts
    Agreed
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    (Original post by chaotik_mind)
    Agreed
    Who's 'they'
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    "They" are your invisible plotters
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    http://www.strike-the-root.com/82/allport/allport5.html
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    (Original post by Tamora)
    Given the government's mismangement of the economy, he might be right, but it's difficult to see George Osborne as an economic expert. He has never had a proper job outstide politics, and started work for the Conservative Party when he was still in his early 20s. I think it's likely that others are pulling his strings, and it would suit them to see the end of sterling.
    We should support George Osborne because the fat Scot (and his puppet Darling) does not have a clue what is going on and has had to abandon all his pretend rules.
    We are better off with Osborne
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    why is the media doom mongering over deflation.

    We needed that deflation, especially in oil prices.
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    (Original post by Adam83)
    why is the media doom mongering over deflation.

    We needed that deflation, especially in oil prices.
    Would you buy a house right now?

    Thats pretty much why deflation is bad.

    How low do you think the oil price should be? $43 is quite low.
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    (Original post by Quady)
    Would you buy a house right now?

    Thats pretty much why deflation is bad.

    How low do you think the oil price should be? $43 is quite low.
    yea, i might. More prepared to now than a few years ago.
    Prices were inflated beyond what was reasonable for people to pay.

    Better at 43 than 149.
    it was the Oil price that mostly caused this crisis. We should be celebrating that its down. Instead the BBC moans that its a bad sign.
    If they mentioned house prices they might have a point. But bubbles burst. bad for some, good for others.
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    (Original post by Adam83)
    yea, i might. More prepared to now than a few years ago.
    Prices were inflated beyond what was reasonable for people to pay.
    You would buy a house today in the near certain knowledge it will be worth less in 12 months time? Why not just wait a year and save 10k?
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    (Original post by Quady)
    You would buy a house today in the near certain knowledge it will be worth less in 12 months time? Why not just wait a year and save 10k?
    well i dont know, id have to look at the stats carefully. I would be buying for the long run, not twelve months down the line. The lower it goes the more likely i would be.
    I think bank lending is the main problem, once they start again the market could rebound quickly.
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    The problem is the boom, not the bust. House prices always revert to 3.5 x the mean salary, you can't buck the market. There's no sense in keeping them in bubble prices unless you want a completely broken society.

    So the question is why were house prices removed from the inflation index? This must be answered and whoever was behind it outed.

    High house prices poison everything.
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    (Original post by Adam83)
    well i dont know, id have to look at the stats carefully. I would be buying for the long run, not twelve months down the line. The lower it goes the more likely i would be.
    I think bank lending is the main problem, once they start again the market could rebound quickly.
    Banks wont start to lend again quickly, they don't have the capital and don't want to lend secured on depreciating assets.

    People don't buy things when they know they will get them cheaper in two months time. Did anyone buy a DFS sofa that wasn't in the sale? No because they knew it would be cheaper shortly.
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    (Original post by Quady)
    Would you buy a house right now?

    Thats pretty much why deflation is bad.

    How low do you think the oil price should be? $43 is quite low.
    The problem is not buyers!

    GREEDY SELLERS are the problem, who won't let their house go for anything elss than double what they paid for it. They are stuck in bubble mentaility but this will soon change as unemployment hits.

    The pent up demand argument is crap, we really have pent up supply. Nothing fuels a house price crash like unemployment.
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    (Original post by _jackofdiamonds)
    The problem is not buyers!

    GREEDY SELLERS are the problem, who won't let their house go for anything elss than double what they paid for it. They are stuck in bubble mentaility but this will soon change as unemployment hits.

    The pent up demand argument is crap, we really have pent up supply. Nothing fuels a house price crash like unemployment.
    If the problem is not buyers why would a seller have to lower their price? :P
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    (Original post by Quady)
    If the problem is not buyers why would a seller have to lower their price? :P
 
 
 
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