The economy and uncertainty?

Question

With the economy in freefall and a government without answers, now must be the time for the people of the country to make a stand.

The government blame these hard times of a credit crunch and the increase of oil prices, apparently the big banks of the world have loaned money to people without the ability to repay, it is a government that oversees and regulates financial institutions this is yet another government failure, or is it sinister to think the governments of the world have engineered this recession, we all know that as the population grows and the influx of immigrants continue without check flood in to the UK and other more prosperous countries, resources and commodities are stretched with a wealth that this creates and social needs i.e.housing, schools and medical establishments are pressed to their limits, and while this is all going on the superrich who own the government, invest in the less prosperous countries receiving large grants and more willing workforce for less

Answer 1

All you say has the ring of everyday reality.  There are two aspects of political-financial life that are often forgotten but I think lie at the bottom of all these troubles.

1.  When the prices of goods and services rise, government income rises through the taxation system.  Government has no financial incentive to control price inflation.  This is true especially of oil and other essential commodities, and most goods in the shops.

2.  Democratic governments have forgotten how they came to be there.  They are there to serve the electorate but they behave and enact legislation whereby we have to serve them.  This is the major failing of the democratic principle in the modern world and may eventually bring about the collapse of democracy.

Because of these two features, parliamentarians will not listen to the electorate between elections and will make unrealistic and cynical promises at election time.  It seems to be the same in all western democracies, in India and in the emerging "democracies" of Eastern and Southern Europe.

Answer 2

Mmmmm! Cake!!

Answer 3

All the extra people coming in certainly stretch resources, but they also provide jobs as more houses, teachers, doctors etc. are needed to meet their needs.  And when these people start work, they will be contributing to the common good of all.

The governments could do more if leading by example  -  curtailing their excessive salary increases etc.  It is not very satisfactory that we all have to cut back our expenses while theirs continue to skyrocket.   Or that their expenses are not subject to scrutiny.  Receipts should be provided, the same as we need to keep ours for proof if we claim work expenses against our taxes.  

Too many of government's decisions are made by civil servants, and not by the people we employ to govern.  Now, how many civil servants are also running the banks so we can blame them for the current mess??

Answer 4

Our living standardis definately in decline and the forcast is worst to come.  Everything you say makes perfect sense!!!!!

Answer 5

I think that a house divided against itself can not stand. And I think that globalism is being actively worked towards for a long time. Only what kind of one world agenda it will be may not be to our liking. I know that the situations in like Darfur are being worked at to solve by going for a UN that oversees the whole world, and polices it all. It's fine to care about everyone else, and to be concerned everyone has food etc. But people like Ted Turner also want to cull the herds (of people.) What's being planned really has no room for religions. And it's not worked yet in those countries that have tried it that way, but still those ideals abound. The powers that be blame religion for all the worlds ills. Feminists do too. And it's working. Faiths are going down by the boatloads in England and the US. They just haven't make inroads on Islam yet. Which the Islamics are highly aware of. But the truth is Atheists are just as cruel as any religious persecutions have ever been. Scapegoating is not the way. But no one has noticed it yet. I do not at all doubt the current economic situations could have been engineered. Every real serious investor knows that crisis is opportunity time. Which is why I personally think it was the Chinese who took down the Twin Towers. What better place for Osama to hide than under their wings somewhere? Crisis is actually the very best time for serious long term investing. Without banks financing the "have nots" a whole lot of contenders are right out of the running. The really weathy do not need to go through financing.

Answer 6

Economies are cyclic - for every recession there is a boom.  Ride out the hard times, and the economy always upturns again.

Answer 7

I  dont think you're cynical, just telling it as it is!

Answer 8

Hi OK.

I could not agree more with every word you say. The Government allowed uncontrolled loans being given to people for one reason only - to increase cash-flow and achieve the 'targets' that Blair had set knowing full well it would do longer term damage.

I can remember in the olden days there were 33% deposits required, pay freezes etc.

Just recently - 110% mortgages ???

If Government officials were held personally responsibly for blatant bad governing and mad to pay a contribution to the losses that have been incurred, then I think we might have seen a different result. Instead, there are rewarded with fat pensions, big payoffs, knighthoods etc.