Thursday, 5 March 2009

Money talks. It says 'Stop spending me!'

The tiny coffin contains the remains of the British economy.

(Picture first sighted with interest here)


Last time I checked my ISA it was paying 1.5%. With the official inflation rate at about 3% (I think) and the real inflation rate higher and set to spiral out of control since the Gorgon's only answer is to cut the rate to almost nothing and print more paper money, this means the money I leave in the bank is devaluing only slightly slower than the cash in my wallet.

Two tobacco packs ago, 25g was £5. It had been that price for some time. The one before last was £5.07 and the last one was £5.24. Okay, I tend to spin out a pack of tobacco until I'm smoking the last dried shreds but even so, 25g doesn't last a week. That rate of increase is a lot faster than 3% a year. It's not at Zimbabwe levels yet but the first signs are already there. Save those dog-ends, folks, you'll need them soon.

The Gorgon and the Bank of England have put small businesses like mine in the position where saved and earned money is worth less every day, but we can't put our prices up because there's a recession. If it was his intention to stop those who want to keep the economy moving from doing so, he has succeeded.

Savers, likewise, are now getting such paltry returns on their money that they will have to reign in spending. 'Heat or eat' will soon apply to far more than the pensioners. Another year of this government and it might apply to everyone except those who work directly for the wasters from Labour, better known as the Sackcloth and Ashes party. I bags first go at the roadkill, before anyone else claims it.

Now they are printing money with nothing to back it up. Weimar Republic, here we come. And we all know what happened next.

Nice work, Labour. I'd like to cut each one of you off at the knees and stand you in a bucket of salt. Then hand you over to Old Holborn, who is at least keeping the piano-wire industry in business.

17 comments:

Richard said...

With 70s style inflation but no 70s style exchange controls, people may start using more stable currencies - like the Argentinian Peso. Watch out for a new law allowing MPs expenses to be paid in the currency of their choice.

Alternatively, sovereigns could make a comeback on the high street as we all revert to the most stable currency of all.

Anonymous said...

I seem to remember that an economy was judged on it's balance of payments, and I can also remember that not too many years ago we had trade surplus's on a regular basis, When did we change this to basing the health of the economy on how much we spend on imported junk on the high street? And the susequent £6bn+ per month deficit which seems to be normal.

Anyone?

Anonymous said...

Worse! there is a very big anomaly in the market, in fact the financial law says that when the investment is less safe you get more interests, instead now we got fucked as savers risking all the capital because we don't know if the banks will survive the crisis.
But a law is a law so very soon or the banks will return safe or the interest will go up...
Welcome in the third millennium nightmare...

Funambulist said...

I know some commenters here have suggested buying gold - anybody got an informed opinion about putting spare cash into property? The 'experts' say "wait and see because house prices will drop a lot more..." That may well be true short term but in my experience property prices in the UK will stall and dip from time to time, but always recover and rise again after a pause.

The fact is Britain (especially England) is now one of the most densely populated countries on earth, and getting more so by the minute, and every sardine is clamouring for a can of its own. Putting money into affordable property seems a more attractive proposition than sticking it in a bank to melt away like ice-cubes in the sun...

(OH, don't mean to turn your blog into the 'Investors' Chonicle', just interested in what some real people think about possible solutions.)

bofl said...

Funambulist....i think walking on a rope between the twin towers might be a safer option!

give phillipe petit a call.

my mum and dad have a nice place in essex..4 bed detached.yours for £325,000.......you can rent it out to the hordes....
get in touch on my page

it's either banned or compulsory said...

It's all part of Gordons cunning plan. Having reduced interest rates to next to nothing the kulak money hoarders will be forced to release their " savings " in order to eke out a living.
Whatever they have left in their dotage they'll have to spend on care home charges; by thus releasing all that hoarded wealth I will be seen to save the world.

Gareth said...

"I'd like to cut each one of you off at the knees and stand you in a bucket of salt."

I think someone's already done that to Hazel Blears.

I've been keeping vague tabs on gold bullion sovereign prices at the Royal Mint. A few months ago they were £160. Now they are £225.

TheFatBigot said...

In answer to Mr Anonymous, the balance of payments became irrelevant when we joined the happy-clappy Church of the EU.

We can't count trade with the other worshippers because we are one fellowship bound by deep ties of mutual bankruptcy and corruption.

We can't count trade with non-EU countries because it is not our trade, it is the EU's trade.

We have no balance of trade these days, we just have a tambourine and a recorder.

Anonymous said...

Funambulist. The best evaluation I ever read for gold was where someone quoted that a Roman soldier could buy a suit of clothes for an ounce of gold, you could do the same during the 1930's depression and you can do the same now and will very likely be able to in another 1000 years. What do you reckon you'll get for £700 of Brown's devalued pounds in even 5 years?

Anonymous said...

It is often said to put just 10% of your money into gold because of its fluctuations, I wonder if its the same now under snot gobbler. I bought Krugerrands some months ago and they have gone up in price substantially.

Anonymous said...

"I'd like to cut each one of you off at the knees and stand you in a bucket of salt."

Personally, I'd go for about 18 inches higher & add some caustic soda to the salt.

I watched Pravda & Sky this morning & saw the announcement about Lloyds TSB. What the merry fuck has gone so badly wrong with our country that a half crazed (only half?) idiot like Clown Brown and his corrup mis-Government can bankrupt a complete country so quickly I wondered? Then I saw that the next interviewee was Peter Mandelson & realised exactly how it had happened. Fucking crooks, spivs, perverts, whoremasters & troughing pigs the lot of them. Thanks, I feel better for that, but next time I'll be more blunt & honest & won't hold back so much on my opinions.

The Headmistress said...

"rein in" - not "reign in"

To give you time to change it before Dennis comes by....

Anonymous said...

Get onto Sky news now and watch Lord Fondlebum having green muck thrown in his face. Enjoy.

Anonymous said...

Anon 07:54 Damn, I just missed it! It would have made my day too.

Over at LabourLost that twat Campbell is asking for things to go in the Labour Manifesto - can't think why he bothers as anyone with half a brain knows that if Labour got in again they'd ditch all the bits they didn't like anyway - look what happened (or, rather what didn't happen) to the EU Referendum & the pensions link. Incidentally, Campbell's other half - can't remember her name has written a book on how to successfully hold down a job, manage a home & raise kids. My other half was watching & turned it off when she realised who the woman was, saying 'I don't need to listen to some thick rich bitch being patronising & telling me how, with a Nanny, a housekeeper, a couple of cleaners & a gardener I will have time to arrange the flowers for a dinner party. All she has to do is sleep with that cunt'. Obviously another Campbell fan!

Pissed off Saver said...

Its nearly time for ISA interest to be added.In years gone by I have used the interest to pay for holidays.
This year I will be lucky to be able to afford a tank full of Diesel.Thanks to Gordon and his Scottish Gay mafia ruining this country savers have been punished
to the point that you must say why not put it under your bed away from HMRCs gaze.

curly15 said...

It's like, they are getting ready for Red Nose Day, but the joke is on us.
Printing money has never been the answer!

Funambulist said...

Many thanks to all who shared their invaluable investment knowledge!

After careful consideration, I think the best course of action is probably to build myself a house out of gold bricks and change my name to Auric Goldfinger. At least the Big Bad Woolas won't be able to blow my house down.

@bofl

Strangely enuf, my grandad really was a tightrope/slackwire artist in circus and music-hall. Think the Twin Towers might have given him pause for thought though.

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