General Chat

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.

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

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

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.

Agree with Brian. Good post.x

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.

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 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.

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**.

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.