Britain may need zero per cent interest rate, says top econo

snow hope · Post by **snow hope** » 29 Oct 2008, 10:34

Lesson - have plenty of debt!

SunnyJim · Post by **SunnyJim** » 29 Oct 2008, 10:56

Oh yes. Debt is growth. Without debt there would be not growth of our money supply. Every economist loves a person willing to take on debt. Our society is founded around it and we think it is normal! We have been suckered into becoming a debt bearing society, and it has removed our choices. We have to work for organisations we dislike, simply to pay the mortgage. e.g. Te$co. Many that work there dislike working there and don't agree with the companies ethics. They have to work there however, because debt forces them into it.

It strikes me that the best way to live would be a hand to mouth existance, of local trade and reliance, using local currencies, with excess wealth stored in the form of grain stores, woodlands and animals. Of course to do this you must be debt free in the first place. It is not a life with room for payments to idle bankers.

You would neither be in the slavery of debt, nor at the perils of loosing savings.

Aurora · Post by **Aurora** » 29 Oct 2008, 20:34

BBC News - 29/10/08

The Federal Reserve has cut its key interest rate from 1.5% to 1% in a widely expected move, as it aims to avoid a possible US recession.

Article continues ...

I guess the UK and Europe will be keen to follow their lead over the next few days. What happens when we reach a 0% interest rate?

Totally_Baffled · Post by **Totally_Baffled** » 29 Oct 2008, 21:12

http://news.bbc.co.uk/1/hi/business/7698614.stm

"It is even possible that this event may turn out to be more significant than the 1929 crash which primarily involved bank failures in the United States," he said.

Cripes and this guy is making this comment without factoring in PO!

Help....

SunnyJim · Post by **SunnyJim** » 30 Oct 2008, 08:48

He's probably just read The Oil Crunch: Securing The UK's Energy Future, or the latest IEA utterances.

JohnB · Post by **JohnB** » 30 Oct 2008, 18:01

snow hope wrote:Lesson - have plenty of debt!

There are two ways to buy big things. Buy it now and borrow the money, or buy it later when you've saved up for it. I was brought up to do the latter. If there's inflation and low/no interest, you have to work more to earn the money to keep up the value of your savings until you can afford to buy the item.

Not having savings or debt means that you can only buy cheap basic equipment, and you can't save up (or borrow) to buy the horse and cart that would make life easier.

Moadib · Post by **Moadib** » 02 Nov 2008, 23:44

MacG wrote:You see, this thing about "savings" is just an illusion anyhow. In reality the retired people are fed by the working people.

One small correction - the non-working people are fed by the working. The important number is not the ever-increasing number of retirees - they were once children or in education and equally non-productive. The important ratio is working to non-working.

Moadib · Post by **Moadib** » 02 Nov 2008, 23:47

Totally_Baffled wrote:What happens to stirling at 0% with our trade deficits and government borrowing levels as they are?

Mind you , many thought the dollar would be toast, yet they are at 1.5% interest rates (probably 1% on wednesday) debt higher than ever, no growth (probably in recession) and yet the dollar has strengthened significantly and is getting stronger!

The dollar is toast, this phase is just the carry trade unwinding, and causing a temporary demand for dollars (and yen, the main carry trade favourite).

Once that has unwound, and currencies are supported by the famed fundamentals, look out below.

Weak currencies and inflation reward debtors - who is the world's biggest debtor...? Of course the dollar will continue to get weaker.

biffvernon · Post by **biffvernon** » 03 Nov 2008, 08:13

Moadib wrote: the non-working people are fed by the working.

When the non-working are working in the vegetable garden to feed their families are they working or non-working?

JohnB · Post by **JohnB** » 03 Nov 2008, 10:47

biffvernon wrote:When the non-working are working in the vegetable garden to feed their families are they working or non-working?

Working.

biffvernon · Post by **biffvernon** » 03 Nov 2008, 11:14

In that case, given a bit of Landshare, there will never be many non-working and we will all be fed

JohnB · Post by **JohnB** » 03 Nov 2008, 12:16

biffvernon wrote:In that case, given a bit of Landshare, there will never be many non-working and we will all be fed

But it does need a complete change in the way people and government think to get there. My aim is to get my home, land, food growing etc planned and then see what I need to earn, and work out the best way to earn it. Few people have that luxury, and it may not work for me either.

eatyourveg · Post by **eatyourveg** » 03 Nov 2008, 14:35

JohnB wrote:
biffvernon wrote:In that case, given a bit of Landshare, there will never be many non-working and we will all be fed
But it does need a complete change in the way people and government think to get there. My aim is to get my home, land, food growing etc planned and then see what I need to earn, and work out the best way to earn it. Few people have that luxury, and it may not work for me either.

That is what I did. Shoot first, ask questions later. No, it ain't easy, it made my brain hurt.