Black Hole In The Economy

http://www.express.co.uk/news/uk/384...-stop-spending

I spotted the headline (in the above link) whilst shopping yesterday. Initially, I thought 'what the heck is going on' but then began to wonder if this could be all about driving wages and prices down. I long ago gave up any notion that governments (any of them) care that much about Joe Bloggs in the street but business getting hit is another matter; I'm surprised that's being allowed to happen.

Do you think that this could be part of a master plan of driving the two cost-fixing elements to a lower, and hence more competitive, level?

We've heard many times over the last few years that Britain and the British have been living above our means - is this how they are trying to redress the balance?

Re: Black Hole In The Economy

Without businesses thriving the economy is obviously going to take a nose dive, and Joe Bloggs will have even more to moan about.

After Christmas the shops seemed a bit quieter, but around our way now they are as busy, if not busier, than usual. People seem to be spending quite happily.

Re: Black Hole In The Economy

Living above our means?

The simple explanation is that the UK government, the people that those that vote, voted for, are spending (wasting) more money than they have coming in through taxation.

Unlike the government, individual citizens who find they have less money, are spending less and then only buying things they need to like food and heating their homes.

The majority of the people in this country don't realise the difference between a "deficit" and a "debt" I even heard an MP say we need to "pay off our deficit"

Worst of all, money isnt worth anything. It is just printed paper. If the government wants more they priint more.

Money is a "voucher of time" worked. If you work you get X credits. You then redeem them against other people's X credits. The trouble is that people's time is valued differently. One person's life (their time) is worth less than anothers. eg a Doctor compared with a shop worker.

The only plan is to steal everyone's money (ie their time credits) by means of state encouraged inflation (there is talk of scrapping the BoE inflation target, not that it was ever hit anyway! QE money printing further devalues your money. (the time you spent working to amass your "time credits" savings)

Plan don't make me laugh, the many have been used and abused by the few since the middle ages!
We should have done what the French did and cut off their heads when we had the chance!

Re: Black Hole In The Economy

The Black Hole has been forming for many years, the sale of "Blinkers" raising exponentially.

Re: Black Hole In The Economy

The bulk of your post I agree with and 'the few' get away with it because 'the many' allow them to. I was once told that it takes two parties for a bad situation to continue: the one causing it and the allowing it to go on.

However, my post was more about wondering whether or not the government is deliberately driving down not just wages but also prices - otherwise, I don't see how anyone with a basic grasp of Commerce let alone Economics could see the harm that's being done. If it is to drive down prices as well, it might just be worth it in the long run.

Then again, I could have this all the wrong way round

Re: Black Hole In The Economy

Government is not driving down prices!
They were worried about stagflation and printed money to stop it!
They want inflation. It is the ONLY way the national debt can decrease in real terms is to inflate it away.
They are even fiddling with the inflation target and how it is measured and reported.

When was the last time your gas or electricty prices went down?
When was the last time petrol went down to 115p a litre?

As Yazoo said The only way is UP!

Re: Black Hole In The Economy

Yes, you've got a point. I was being hopelessly optimistic