Thursday, March 05, 2009

Take the Money and Run

Interest rates at 1/2 per cent. If that’s not the light at the end of the tunnel then it’s a train coming in our direction, carrying with it, a wagon-load of quantitative easing!

I need to go looking for one of those old photographs from the 1930’s of someone with a wheelbarrow full of cash on the way to the shops to buy a loaf of bread.

Everyone, I'm sure, irrespective of political allegiance will hope this move by the Bank of England, will breathe some life back into a fast failing economy. I’m reminded of a comment made by the instructor on the paramedic course I attended some years ago. “Death”, he said, “is the worst possible form of ill-health” and the same could be said of the major organs of the British economy, finance, manufacturing and even Emmerdale!

Strangely enough, I discovered a ray of sunlight here in Thanet yesterday, a local software development company, with a phenomenal idea and a proven working application and platform to support it. To say I was bowled-over by the possibilities wouldn’t do it justice; our Thanet North MP, Roger Gale, had asked me to take a look. I won’t say who it is and what it does just yet but I rather wonder if its idea might impact many of us in the future.

Wouldn’t it be wonderful if a small national technology success story came out of Thanet? We’ll have to wait and see, because it’s still in its infancy and faces the same challenges of every other small start-up business in the country in the present economic climate.


ascu75 aka Don said...

No need fopr a 1930's picture just look at Zimbabwe I used to have a picture of a billion dollar note on the church website I now think they do a 10 billion dollars when it was pinted it was worth 300ish US dollars but at there rate of infation its now only worth 30 cents US

Michael Child said...

I think that one aspect of such a low rate of interest means that people will be considering turning their money into material items that won’t depreciate, I am already seeing an increased interest in collectable and antiquarian books for investment and am beginning to wonder if we are already on the slippery slope leading to a run on the banks. This current recession is much more like the one in 30s America than the last one and it is looking like the only solution will be to try and ride it out and retain ones assets.

Anonymous said...

anon again!

I believe we are always cheered to learn of something positive coming from Thanet, espcially as it may become a national and even an international success.

I've written to Mr Mugabe in an effort to discover how to make a few 'bob' during inflationary recession, in case I need some help in the fast aproaching era.

Tony Beachcomber said...

Before the German economy started to implode in the 1920's one measure taken was to print more money. To hide this fact money was printed with different dates and made to look old , I assume hoping people wouldn't notice.

Michael Child said...

Tony I know a chap who was a legal advisor to the banking industry before he retired and still has a lot of contacts there, he tells me that printing more money is exactly what we are doing.

Tony Beachcomber said...

Michael, There are some facts about the dollar that may be of interest that I have picked off the internet over the years. Firstly, if ever dollar incirculation in the world outside America was returned to the America, their economy would "overheat" cuasing all sorts of economic problems. Every dollar circulating outside America at one point in its life cycle would have been used in a drug deal.
America has over 8000 tonnes of Gold Bullion to back the dollar even though they are not on a gold standard.