economics

6 Feb

london 3.6C cloudy tuesday 2018 12.12pm

still 3.6C even though it is noon allready. i was out just now and it was not really that cold, no strong wind that is why. as long as you protect your head and hands, and get a scarf round the neck, it is comfortable. i am now long since consider anything above 0C as not cold at all. lots of warnings of snow up north and forecast of more to come, but here in  london, we dont get any of it. they say this feb will be cold all month long, and even stretch into march, but i dont think it will really go below zero C for long, and so i dont think it will be cold. this i can confidently predict for london. 

Digital StillCamera

this is what it was at about 10am when i set out.

stock market has gone down all over the world, started when america sneezed, now the rest of the world got a cold. haha. i suppose a correction is due since the stock market shot up like crazy recently.

it is one of those funny things, where fear of increased inflation and subsequent interest rate rise cause this panic. yet increased interest rate is good for savers, which have been shafted for a long time now. but nowadays govt can print money, so they dont rely on savers to fund their borrowing. so borrowing has gone through the roof…

The EU have been printing money , huge amounts of it, for ages, yet it does not seem to cause any panic. and yet when america hints that inflation may come and it may  have to increase interest rate, and their investors start selling , you get all this panic.

something has been keeping prices down even though the govts like america, uk, EU have been printing money like mad, what is it i wonder, but whatever it is, it is now unable to maintain it. the received wisdom is that if u print money, inflation will automatically rise… (you just have to see germany doing that before the world wars, massive inflation they got.)

in recent years that does not seem to apply, but now that wisdom seem to be still valid, we are seeing all that quantitative easing coming to roost. does any one have any explanation to why inflation has been so low for so long, even though the world have been printing money like crazy… if u can explain why, you might be able to predict what will happen in future. 

6 Responses to “economics”

  1. juliehcares Tuesday February 6, 2018 at 12:45 pm #

    A retired banker I drive predicted this last year in America. 😀

    • alifesgayventure Tuesday February 6, 2018 at 1:17 pm #

      maybe you can ask him why inflation have been so low, even though the world have been borrowing like crazy and printing money likewise.

      • juliehcares Tuesday February 6, 2018 at 1:45 pm #

        I see him tonight and will ask 😀

      • Garfield Hug Tuesday February 6, 2018 at 2:19 pm #

        Interested to find out the answer😊

      • juliehcares Tuesday February 6, 2018 at 11:45 pm #

        The Obama administration wanted to keep it low for political reasons. Yellon (not sure if that’s spelled correctly) was in charge of the Feds and kept it low for Obama. Now that she will be out next month, people think interest rates will go up with the new person.

  2. alifesgayventure Wednesday February 7, 2018 at 12:37 pm #

    sounds like he is basing it on politics. usually the strength or weakness of the $ determines politics. so it is in the interest of politicians to keep it steady, so they try to keep interest rates down, good for business too. i would think the new boy setting interest rates will want to keep it steady and not rock the boat. but if inflation goes up then they will be forced to increase it. so far there is no sign of inflation going up. wages have risen according to the latest statistics and so they think it will cause inflation, hence the sell off. but it does not follow automatically that inflation will rise. it would appear this stock market drop is a correction.
    something else is keeping inflation down. oil prices going up can cause inflation, but oil price is held down by fracking, so that might be why there is no inflation. they say it is china that has kept inflation down with its cheap goods flooding the us market and in fact flooding the world’s markets…so that might be another reason why inflation have been kept down. people are saying it must come to an end surely… if there is a coming crisis i think it will be if china catches a cold. haha.

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