With UK government borrowing running into the hundreds of billions, how can we stop any future recovery from being crushed by the sheer weight of debt?
One answer is monetisation.
Rather than central banks printing money and buying government bonds only in a crisis, they would do it all the time to fund ordinary spending. Rather than turning to international money markets to finance deficits, the state could effectively fund them itself.
We are already well on the way: the Bank of England now owns about one third of the UK’s national debt. After so many political failures, the left smells an opportunity.
Long mocked as believers in “magic money trees”, the response to Covid-19 suggests that such arboreal wonders do exist after all. If money can be summoned out of thin air to fight a virus then why, the argument goes, can it not be used to fight other deadly plagues: poverty, unemployment and climate change?
The first objection is economic. You can print infinite money, but there are limits on the goods such money can buy.
We still live in a world of scarcity. Unlimited demand for limited resources eventually generates hyperinflation. The currency would crash and the price of imports would soar.
Yet with so many countries monetising their debt at the same time, perhaps the pound would not fall relative to other currencies. Perhaps serious inflation could be avoided.
Motivational Quote Of The Day
“Your beliefs become your thoughts, your thoughts become your words, your words become your actions, your actions become your habits, your habits become your values, your values become your destiny.”
Mahatma Gandhi
Alternative Quote Of The Day
“A man walked into the doctor’s. The doctor said, ‘ haven’t seen you for a long time.’ The man replied, ‘I know. I’ve been ill.”
Tommy Cooper
Preparing For The Worst
A few years ago, I found myself at a hotel in Florida hosting a huge conference on Hurricane Preparedness, so I know that preparing for the worst can be big business. And that’s the premise behind a California based company. Earthquake Solutions makes it’s money from both consultancy work and the sale of emergency kits to the public.
Now I know that hurricane or earthquake preparedness isn’t a big issue here in the UK, but I do think that most of us (and I include myself here) are woefully unprepared for a natural or manmade disaster.
How would people cope following an unprecedented weather event, huge terrorist attack, total disruption of the transport system, the National Grid going down or fuel supplies drying up? Would they have the food, water, shelter and alternative power supplies they’d need?
Most would not.
I can’t pretend this is the easiest sell… people don’t like buying stuff when there’s no immediate need… but there’s no doubt that they would benefit from having a kit containing all the essentials to hand. If you can figure out a way to market this effectively there’s big money to be made.
Every home in the UK is a potential customer.
If this interests you, do some research on what’s available in the United States where preparing for the worst seems to be a National obsession?
Today’s National Day
NATIONAL RUNNING DAY!
PUBLISHERS NOTICE
Dear Streetwise Customer,
Imagine sitting down this afternoon and tapping out a simple letter. It takes you perhaps a couple of hours to get it right…
And Then Over The Next Few Years It Brings In Over £5 Million.
Pure fantasy?
Not at all. I’ve done it. I’ll even show you the letter. And I’ve written lots of others just like it, although they weren’t all quite as successful as that one.
But Even So, Many Of Them Landed Thousands Of Pounds In My Bank Account Within Days, and Hundreds of Thousands Within Weeks.
Like to learn how to do the same?
Well there has really Never Been A Better Time for three reasons…
1. These letters bring in serious money when times are tough – and they don’t come much tougher than they are right now.
2. These letters are even more powerful when the world is relying on the internet for its requirements, just like it is right now.
3. You probably have some free time available to learn how to do this at the moment.
Allow me to show you, for more details CLICK HERE
This is an exciting and realistic alternative to the gloom which is all around us today – an escape route. It’s an alternative that can quickly see you banking more than enough money to see yourself and your family right through this current crisis and then into uncharted financial success when all this is over.
This comes with a 100% cast iron 90 day money back guarantee. There is absolutely no risk to you to take a look.
Kind Regards
John Harrison
