Sunday, January 11, 2009

What do the Weimar Republic, Zimbabwe and now Great Britain have in common?


For anyone struggling with the correct answer, may I point you to Guido's excellent post and comments, from today

Alistair Darling( luvvie) may have said that we are not going to print more money but that is a lie, he means hes going to turn a blind eye if more is printed.

They are changing a law that has been around for over 164 years

I shall quote a bit

The Government is set to throw out the 165-year old law that obliges the Bank to publish a weekly account of its balance sheet – a move that will allow it theoretically to embark covertly on so-called quantitative easing. The Banking Bill, which is currently passing through Parliament, abolishes a key section of the law laid down by Robert Peel's Government in 1844 which originally granted the Bank the sole right to print UK money.

... Debating the issue in the House of Lords recently, Lord James of Blackheath, a Conservative peer, said: "Remove [this] control and there is nothing to stop an unreported and unmonitored flooding of the money market by the undisciplined use of the printing presses. If we went down that path we would be following a road which starts in Weimar, goes on through Harare and must not end in Westminster and London. That is the great fear that the abolition of that section will bring about – but the Bill abolishes it."

Robert Peel the same man who established the police force and why a colloquial term for the police is the Peelers

Yet the government lies to you hand over fist ( tip you can tell when Gordon does it He cackles with laughter)

Another person who comments on Guidos post says that he predicts war

I support that prediction The war that 1984 ( the book) has is going to become real.

Im going to try and persuade my elderly parents to invest in gold bullion rather than have paper money in their savings accounts.

It might mean that they enjoy whats left of their retirement rather than fall prey to the five billion pound note issued on December 21 2012.....
Repent
The end of the world is nigh ....


I mean in Eschatological terms the death of Wedgwood as an industry and it going into administration when it was one of the first companies of the Industrial revolution , is a portent of doom

The Mayan calendar finishes in 2012

2 comments:

  1. You're not supposed to give away the answer like that, you could have done a Fun Online Poll!

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  2. The average six year old has worked out that expanding the money supply by a factor of a hundred in the space of one year a la Mugabwe leads to rampant inflation. To argue from this that the money supply should never be expanded is like arguing that because the Buncefield oil depot fire was a disaster, therefore no one should ever use diesel or petrol.

    The reality is that more modest money supply expansions are a perfectly legitimate way of boosting economic activity, or keeping the economy ticking over. For example the monetary base in the UK expanded by a factor of 2.6 in REAL TERMS between 1982 and 1998: way beyond the expansion of the economy in real terms. Yet inflation was well under control in the 1990s and from the 1990s to the present day.

    And for another example, the US monetary base has DOUBLED in the last quarter. This is unprecedented. But the big money is not predicting serious inflation in the US any time soon: there is a healthy demand for US Treasuries, and people do not buy these if they think their value will collapse soon.

    If inflation does loom, then any government worth its salt can take appropriate deflationary measures, e.g. claw back the money supply increase.

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