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monty_jon
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Monty, its a depression not a recession, although they'll tell you we still have growth so not even recession. From what I see from people I know, Retail is well down, and those selling are discounting (sure sign of a depression) construction/building, although some are flat out, others feck all to do. Banking's doing well, I really should have gone into that years ago, pretty much no lose career.

Wouldn

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The shrinking of the money supply is a depression, less money circulating around the economy, less money available to pay off debt. Hope is at hand though, your Central Bank has been printing new money to replace the lost money in the system, it does this by buying the **** Banks bought and can't sell on. The Central Banks prints new money, gives it to the Banks and at some stage it finds itself into the money supply to us, although by the time it gets to us its been so devalued via inflation we see little benefit from it.

Mervs speech a few weeks ago was very concerning, he's been predicting 2% inflation for years and been massively wrong, he then said he is now expecting a rapid fall in inflation possibly well under his target of 2%? A rapid drop in inflation is an extremely bad sign, its a sign of a huge shrinking of the money supply, massive defaults and unemployment will be the norm within weeks.

It always make me chuckle when the RPI goes down abit in a month, its reported on the news that the cost of living is dropping/coming down? no its not, its still rising, a drop in the cost of living would be a negative inflation figure (deflation) a terrible outcome.

Edited by The Addict
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I'm depressed now ... :chairfall: Can we get back to Kenny the rooster ???

But as stated earlier , I think all of us westerners are in the same sinking ship...

Obama and his give them a free ride for life followers worldwide need to get removed from power ...

The world needs to get back to a "say what you do and do what you say " attitude , and earn and spend what you earn ,not more more than you can earn ...

:beer: :beer: :beer: Saturday afternoon bored ...

Glenn B)

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Soo true! Pay off anything costing you interist money! Highest rate first!

Ironic, I actually had a credit card company fire me after about 15 years of service! I paid them in full every month, used their money for my convenience and at no charge to me, other that the occasion I wanted to spread a charge out over a couple months!

They were easily replaced! :rolleyes:

Mind you this requires a steadfast intent to stay out of debt of most anything you cannot afford! :thumbup:

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  • 2 weeks later...

Today's business headlines.

" European banks borrowed enough cash from the European Central Bank at its first three-year offering to refinance almost two-thirds of the debt they have maturing next year amid concern that markets ..."

How to dig yourself out of the hole, borrow more, isn't that what addicted gamblers do.

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Today's business headlines.

" European banks borrowed enough cash from the European Central Bank at its first three-year offering to refinance almost two-thirds of the debt they have maturing next year amid concern that markets ..."

How to dig yourself out of the hole, borrow more, isn't that what addicted gamblers do.

Surely this is the same problem that started all the problems, banks borrowing money to buy euro-bonds aka: bad debts!

Makes no sense to me!

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The Banks know how close things are to collapse and how many of them are insolvent. They are no longer willing to borrow to each other to maintain the capital reserves. A few weeks ago all major central banks had to step in extremely quickly to stop a handful of Banks going tits up, they sorted it but again today we just how skint the Banks are.

Half a trillion Euro's created by the ECB in a single day? makes the Fed look like small time? The days of borrowing your way out of recessions are gone, it cannot be done with the figures involved.

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Here's how f****d the current system is? the Banks are the only creators of money in the economy, money is only created via loans and mortgages, most people assume the money they loan is from savers money with the Bank? nope!!!!!!! that money is used for speculation and reserves, the money for loans is created by tapping in numbers on a keyboard (you couldn't make it up) The Banks can create (leverage) depositors money in some circumstances hundreds of times, vastly increasing the money supply, the Banks now control our economies/inflation/interest rates and deflation, not government. The Banks speculate, lose, and the tax payer has to bail them out. Government borrows the money to bail the banks out with loans from Banks that are interest bearing and gives the money to the banks to bail them out?????????????????????????// WTF!!!!!!!!!!!!!!!!!!

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