Governments live in fear of the word. Banks tremble before its dark and awesome majesty. They would have us believe that a deflationary environment is the worst of all things. Of course, the picture isn’t as clear as all that. During a period of deflation, money goes up in value. Each day that passes, the money you have is worth more. So if you have savings, or a good reliable income, or if you are a creditor, you will find deflation rather less than an unhappy situation. If you are a low earner you don’t get all these benefits, but you do still find your lower wage goes a lot further as the cost of living drops. The people who are really hurt by deflation would be anybody who owes a huge amount of money. This is because the debt, with each day of deflation, increases. Now, who do we know who really owes a lot of money. Trillions, say? Oh yes, it’s the government isn’t it? But don’t worry, they can just print fictional money, pay what they owe with that, and force the country back into inflation again. What do we call it when people deliberately play with the economy to make themselves consistently richer? Corruption, isn’t it?
Gordon Brown Wants To Ban 100% Mortgages, Does He?
Well, of course he does. Two thousand-nine is ”invent a stupid initiative year” and he has to junk one out at least every forty seconds or he’ll lose a bet with Jack Straw. Please, somebody tell me, what business is it of government to tell banks how much they can lend? It’s private business, despite their best attempts to make it otherwise with our favourite high-street brands. Government has a job, but this isn’t it. What government should be doing is making sure that banks lend a reasonable amount that people can afford to pay. If thats 100%, or 500% or whatever, fine. The important thing is that the bank does due dilligence to make sure its borrowers are within their means. Banks that deliberately lend more than somebody can afford, or who make no attempt to even check how much their customers can afford, should be directed to the courts – who should have the power to write off the debt due in its entirety. Then, I suspect, we’d see sensible lending come back very quickly indeed.
Pizza & Politics
I’m quite excited about this coming week, and that’s because we’ve reached Pizza&Politics II (The Revenge of Pizza & Politics?) Following the phenomenal success in March last year, FensCF are bringing their flagship event to Wisbech for another run of intelligent debate, friendly congregation and a huge amount of PIZZA to be Scoffed. The event is aimed at anybody from 14 through to 30 years of age. Coming To Wisbech on Friday 27th February 2009, 7.00pm to 9.00pm at the Oasis Centre. Free Pizza, Free Soft Drink, Free Your Mind. Special Guests:- Malcolm Moss MP and Stephen Barclay PPC. Come along, it’ll be a great night!