athenasius
Well-Known Member
as the pound drops it's value.
This article points out it comes at a very bad time for the US dollar and other currencies struggling with the problems of handing out "free" money which simply came by printing more of it, which devalued the currencies, and stole from the populations.
https://www.newyorker.com/news/our-columnists/a-fine-economic-mess-in-the-united-kingdom
"Stocks in the U.S. fell again on Monday, dragging the Dow Jones Industrial Average into bear-market territory—since hitting a peak early this year, it has now fallen more than twenty per cent. The Federal Reserve’s determination to stamp out inflation by raising interest rates is spooking investors, and so is the precipitous decline of the British pound in foreign-exchange markets. On Monday, a senior Federal Reserve official, Raphael Bostic, took the rare step of criticizing a foreign ally, saying the British government’s new package of tax cuts, which sparked the sell-off in the pound, “has really increased uncertainty.”
While this looks a little like Reaganomics--which work beautifully, dropping taxes and allowing the economy to grow even more, which has a net result of increasing revenue, this relies on govt borrowing to continue to spend, while dropping taxes. The difference was that Reagan cut spending along with taxes. Reagan allowed breathing room for the economy to rebound and grow even faster. So tax revenues went up.
This is a bit different. It's hoping to stimulate the economy thru tax cuts (so far so good, Reagan proved that method works). But in this case the govt is borrowing to meet the shortfall, without the necessary cuts.
I might be dead wrong, I'm not a financial type, and others with more experience in the field should comment in on this to say.
What it looks like to me, is another evidence of the growing financial crash coming up ahead. How fast, when it breaks God knows. I've been watching weird stuff happen for a while now-- since 2008 and before. The only explanation I have is that God is restraining this economic bomb from bursting. It's not obeying the natural laws of economics.
This article points out it comes at a very bad time for the US dollar and other currencies struggling with the problems of handing out "free" money which simply came by printing more of it, which devalued the currencies, and stole from the populations.
https://www.newyorker.com/news/our-columnists/a-fine-economic-mess-in-the-united-kingdom
"Stocks in the U.S. fell again on Monday, dragging the Dow Jones Industrial Average into bear-market territory—since hitting a peak early this year, it has now fallen more than twenty per cent. The Federal Reserve’s determination to stamp out inflation by raising interest rates is spooking investors, and so is the precipitous decline of the British pound in foreign-exchange markets. On Monday, a senior Federal Reserve official, Raphael Bostic, took the rare step of criticizing a foreign ally, saying the British government’s new package of tax cuts, which sparked the sell-off in the pound, “has really increased uncertainty.”
While this looks a little like Reaganomics--which work beautifully, dropping taxes and allowing the economy to grow even more, which has a net result of increasing revenue, this relies on govt borrowing to continue to spend, while dropping taxes. The difference was that Reagan cut spending along with taxes. Reagan allowed breathing room for the economy to rebound and grow even faster. So tax revenues went up.
This is a bit different. It's hoping to stimulate the economy thru tax cuts (so far so good, Reagan proved that method works). But in this case the govt is borrowing to meet the shortfall, without the necessary cuts.
I might be dead wrong, I'm not a financial type, and others with more experience in the field should comment in on this to say.
What it looks like to me, is another evidence of the growing financial crash coming up ahead. How fast, when it breaks God knows. I've been watching weird stuff happen for a while now-- since 2008 and before. The only explanation I have is that God is restraining this economic bomb from bursting. It's not obeying the natural laws of economics.
Rumor has it he actually left and moved to the other side of the country. Lol
