General Chat

Merlin - if we continue to send money abroad as you say, maybe we should do so using the counterfeit pound coins the police keep finding.

As you can guess, I'm not a financial expert! It's just the heat getting to me.

One thing would help, that is to stop sending lots of money we have,nt got (We Borrow it) to other Countries, then try to restructure our Manufacturing Industries,Most jobs being created are in the Service Industries i/e Shops, Burger Bars things like that,really none productive.and as for Greece, Well they,ve just Lost Their Marbles.**M**.

The criteria are: Is there a need? Is the material available? Is the manpower available? If the answer is Yes, then the money CAN be made available by a central Govt controlled bank.

Huia.

Back in the early 1800s Guernsey Island had a problem. Well, actually, several. The sea wall was collapsing, the roof of the market place leaked badly when it rained, and the island's roads were deep muddy ruts in winter. They did not have enough money to carry out the necessary repairs, so a delegation went to England to speak to the governor of the Bank of England about a loan. The chief honcho of the bank rubbed his hands in glee. Certainly he could lend them the money, how much did they want?

They told him, but when they heard how much they would be paying each year, in interest alone, they were shocked. It was almost as much as the Island's entire annual income. They went home with their tails between their legs.

One member of the delegation got thinking about the problem, and he said to the others, we have the materials we need, we have the manpower to do the job in winter when people cant fish or farm, it is only money we are short of. Why dont we set up our own bank to produce the necessary money to do the work, and when the work is done the money will be cancelled out. The others thought about it and agreed that it was a good idea. Of course the B.of E. jumped up and down and yelled loud and long 'You cant do that there 'ere' but they did. The jobs were done, everybody got paid for materials supplied, or work done, there was no inflation as the money created for the jobs was cancelled out of existence. The island prospered.

Now dont tell me it cant be done by England - and Greece, and other countries.

Huia.

The big problem is the financial system, whereby governments borrow from private banks at high rates of interest. Here in NZ, there is a large group wanting the govt and local bodies to be able to borrow from the reserve bank (which is owned by NZ) for important works for low or no interest, a small charge to cover the cost of managing the debt would be sufficient.This would be far less inflationary than borrowing from private banks at high interest rates. Where do the private banks get the money? NO they do not lend their deposits. They create it out of nothing, which is what our Reserve Bank can do just as well.

Agree with Brian. Good post.x

The Public Sector expanded enormously over the last decade and a lot of the jobs were non-productive such as rights co-ordinators, five a day advisors, red tape enforcers and so on. About 800,000 "back room" jobs were created and they are largely still there.

The proportion of the national income (GDP) spent by central and local government spiralled out of control, financed by stealth taxes and increased local rates.

Government borrowing went through the roof and reserves raided. The Bank of England and the Civil Service let politics over-rule economics and interest rates were kept too low leading to an over-expansion of credit.

So when the recession started, as is inevitable because economics always goes in cycles: you cannot abolish "boom and bust" competely, the downturn was multiplied as there was nothing left in the kitty to tide us through.

Unless Government makes real cuts, of whole areas of activity not just a few percent cheese-paring, and gets the proportion of our money that it spends back below forty percent of the national income (currently approaching fifty percent), we will be stuck in a spiral of decline.

3, main problems with your threary

1, people are already in debt

2, what about the people who are out of work

3, people cannot get a job when their are no jobs

Roy

Dear Rambling Rose

Hello

Hope you are okay.


I don't know how this country got into such a mess in the first place.

Everything escalated and now, ordinary people are suffering.


This may seem like a daft idea but it would probably work.

Instead of paying wages monthly or calendar monthly, I would like all workers paid every two weeks.

It is easier to manage money and pay the bills.

Therefore, you are less likely to need to borrow on credit.

I would cut all performance related bonuses.

The National Lottery would be run on a not for profit basis as Richard Branson wanted to when he put in an application for this.

All the money could go to charities and projects in the poorest areas and not spent on things like the Royal Opera House, which still wanted more money, even when given a huge grant.


Take gentle care of yourself, Rambles
With very best wishes
EOS
xx

And it is of course not always entirely the fault of the govt' of the day... world events are often the catalyst, and that can't necessarily be predicted.

what we really need Rose is jobs to get this country on its feet
instead of importing things
we need to open factories that make things we need

IE VASELINE toilet rolls sanitary wear condoms and tablets for the NHS sheets duvets
and many more things

Rose, you can also hark back to the days of Wilson, Heath and Callaghan they all got it wrong

but we are where we are as i said earlier MP's from all the parties are supposed to represent their constituents and instead of slagging each other off they should be working together to help resolve the situation insead of point scoring,


Roy

Joy, I think there are individual politicians who really do have commitment, passion and honesty, it's just that so often they are the thorn in the side of their own party lol...it would be a bit like trying to get a concensus on policy amongst GR members....there might be a majority who would compromise
( left or right) and a few individuals who won't give way on a subject where they know they 'are right' ;-)

i think the party that lies the best get in to be honest ;-) ;-)

Irrespective of whose fault it WAS ( and I could hark back to Thatcher's recession ;) ) that doesn't really help solve the problem...that is what both parties do when they get in, blame the outgoing party ..if they stopped doing that it would give much more confidence in believing they are thinking about the country and the people, rather than point scoring and making themselves comfortable in the 5 years they have in power.

The recovery is also not helped with dodgy greedy employers who used the recession as an excuse to get employees to work harder and longer hours whilst cutting wages,

Then on the next set of accounts these companies show a sharp increase in profits

If you pay your employees less that means they have less to spend on items produced including services and commodities produced by these same companies thus making it a self defeating exercise and they are now having to lay people off because demand is down,

And these so called business men wonder why?

I do no of several large companies that have done this

Roy

;-)

ok jacky :-D :-D

Don't get me started on that one. Let's just agree to disagree :-D

Jacky its the other party that got us in this mess
how much longer could this counrty of got by on credit

you can only borrow till the pots empty :-D