Reply to: How Britain avoided double dipping

[AtW]

It's not economics or printing money that caused fuel to sky rocket.

Right now printing of money is exactly what keeps most commodities highly priced.

[AtW]

You can hardly blame Osbourne for the point at which he started.

No, but you can blame him for everything he has promised but has not actually delivered - those "massive cuts" won't kick in until next Parliament, he's increased taxes and made some cuts, yet he borrows almost as much as before.

LibCons are just following more or less same policy as the Labour did which has got only one real aspect - print money to avoid bursting of the consumer real estate bubble.

Ok, he cut 50% income tax to 45%, but it's not like many people paid 50% in the first place.

[AtW]

Works both ways though. I am in the process of buying an SL mercedes. (2nd one I will have owned but first one from new) the first one was an SL320 it cost its first owner over £80k in 2000 I bought it in 2004 for 22k My new one will be an SL350 and will cost me £77k and in four years will be worth 22k ... If the way you are thinking was true I would have to spend 100k to have achieved the same thing. So why if I am buying a foreign car in a devalued currency (and one that is considerably weaker against the Euro than it was in 2000) but getting more for my money instead of less?

It's deflation, innit?

[Jeebo72]

Works both ways though. I am in the process of buying an SL mercedes. (2nd one I will have owned but first one from new) the first one was an SL320 it cost its first owner over £80k in 2000 I bought it in 2004 for 22k My new one will be an SL350 and will cost me £77k and in four years will be worth 22k ... If the way you are thinking was true I would have to spend 100k to have achieved the same thing. So why if I am buying a foreign car in a devalued currency (and one that is considerably weaker against the Euro than it was in 2000) but getting more for my money instead of less?

This is actually a great example of just how bad the contractor market has become. 6 years ago, myself and my colleagues wouldn’t touch a Merc unless it had AMG in its name. Maybe a newbie might consider a SL with a 5 ltr engine, but nothing as girly (unless a girl of course) as a car with under 300 bhp.

Although I must admit, any decent contractor still wouldn’t. But then any decent contractor never went to 450.

[bobspud]

Cars are not commodities. Compare income with the cost of fuel, food, gas and water.

But those items are price rigged and are always going to go up because there is a finite market and collusion to profit from the behaviour. It's not economics or printing money that caused fuel to sky rocket. Its the fact that only a few companies can get it our the ground and OPEC collude to keep the price of a barrel where they want it.

[Paddy]

Works both ways though. I am in the process of buying an SL mercedes. (2nd one I will have owned but first one from new) the first one was an SL320 it cost its first owner over £80k in 2000 I bought it in 2004 for 22k My new one will be an SL350 and will cost me £77k and in four years will be worth 22k ... If the way you are thinking was true I would have to spend 100k to have achieved the same thing. So why if I am buying a foreign car in a devalued currency (and one that is considerably weaker against the Euro than it was in 2000) but getting more for my money instead of less?

Cars are not commodities. Compare income with the cost of fuel, food, gas and water.

[GB9]

If you take out the massive boom and the following bust, then we have had very gentle growth this decade. You can hardly blame Osbourne for the point at which he started. Labour got us to an unsustainable peak, and although they wiped a lot off in one quarter (near 7%) there was still a bit to go.

[bobspud]

This shows that smoke and mirrors have fooled you into thing you earn more. Your 600 Groats are not the same value as five years ago. The Bank of England has ‘printed’ money thus devaluing it. There has also been global devaluation (first time in history). There has also been Global inflation due to banks buying into commodities and hedge funds. Your 600 Groats are worth about 400 in real terms, maybe even 300 or less.

Works both ways though. I am in the process of buying an SL mercedes. (2nd one I will have owned but first one from new) the first one was an SL320 it cost its first owner over £80k in 2000 I bought it in 2004 for 22k My new one will be an SL350 and will cost me £77k and in four years will be worth 22k ... If the way you are thinking was true I would have to spend 100k to have achieved the same thing. So why if I am buying a foreign car in a devalued currency (and one that is considerably weaker against the Euro than it was in 2000) but getting more for my money instead of less?

[BrilloPad]

I avoided double dipping once by teble dipping. Or was that just a dream?

[DimPrawn]

Everyone is talking about how much their house is worth again, so the magic seems to work.

In Britain as long as your house is going up, the economy is mended. Simples.

[Paddy]

The bit you all seem to miss is that Economics is an exact replacement for voodoo. The followers of voodoo magic knew that you had to believe in it before the powers could work on you. Same for economics. We are all going to hell in a handbasket (by economic standards and yet watch a premier league match on TV or the Ashes or any large sporting / entertainment venue and you will see the seats are full. The pubs on a saturday night in the town centres are still full of the drinking classes and the other week I went shopping in Bath and struggled to find a parking space.

My rate at the start of the year was a solemn 450 a day by april it was back to 525 and now I am getting sniffs and agents starting to take 600 + as a goer. So if they are indeed lying then the lies are working and sooner or later they will inflate the issue into irrelevance. But some twat that looks at figures backwards as a way to tell me what will happen tomorrow is a modern day catweazle throwing dust at imaginary dragons...

This shows that smoke and mirrors have fooled you into thing you earn more. Your 600 Groats are not the same value as five years ago. The Bank of England has ‘printed’ money thus devaluing it. There has also been global devaluation (first time in history). There has also been Global inflation due to banks buying into commodities and hedge funds. Your 600 Groats are worth about 400 in real terms, maybe even 300 or less.

[SimonMac]

Does anyone else imagine a giant chutney spoon hovering over the midlands when they read this title?

Only me then?

[bobspud]

He and CMD are The New Neros.

Fiddling whilst Britain burns.

The bit you all seem to miss is that Economics is an exact replacement for voodoo. The followers of voodoo magic knew that you had to believe in it before the powers could work on you. Same for economics. We are all going to hell in a handbasket (by economic standards and yet watch a premier league match on TV or the Ashes or any large sporting / entertainment venue and you will see the seats are full. The pubs on a saturday night in the town centres are still full of the drinking classes and the other week I went shopping in Bath and struggled to find a parking space.

My rate at the start of the year was a solemn 450 a day by april it was back to 525 and now I am getting sniffs and agents starting to take 600 + as a goer. So if they are indeed lying then the lies are working and sooner or later they will inflate the issue into irrelevance. But some twat that looks at figures backwards as a way to tell me what will happen tomorrow is a modern day catweazle throwing dust at imaginary dragons...

[BrilloPad]

"That’s not a double dip. It is a depression." - well a depression is a drop of 10% in growth which has not happened.

But the economy is 4% beneath its peak and will probably flatline for years. Economy is supposed to grow at 2% a year to stay still - so thats another 10% we are missing too.

[AtW]

Well done George Osbourne.

Look, it's like this - he was elected to fix the economy and bring it back to growth. Upon closer examination it was revealed that real work to do so would require 50 years terms in Parliament and Osborne and his buddies in marginals don't want to risk their political careers, so they just faked it.