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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Snowshoe who wrote (24443)	10/22/2002 6:50:41 AM
From: maceng2	Read Replies (1) \| Respond to of 74559

without the shock of sudden currency devaluation. Yes, I can see your point there. The POG would be stuck at some rate. As the British pound was in 1992 housingoutlook.co.uk ebean390.tripod.com and the Argentine Peso (that was tied to the USD) recently. news.bbc.co.uk In both cases there was an undesirable discontinuity in financial situations (I was going to say "affairs" but confusion may result where John Major is concerned -g-) My general point is, in the UK and elsewhere, money is generated and fed into the system with wanton abandon. Not "fiscal control". What happens is price inflation. Now, I am talking about a real persons POV, not some lofty financial concept. Here the "price inflation" has been the property market. FACT is people have much less to spend on general living expenses. People are cornered into taking out loans. (Except for the fortunate few, and I'm lucky enough to be one of them, who have held property for some years during the bubble). Whether deflation or inflation results, borrowers are screwed in an environment where wages are held down by "fiscal responsibility", yet the real cost of living goes up. Government can jigger the numbers all they like, but that is what is happening in reality. People don't go on 40% wage strikes just because they feel like it. Their real wages have already gone down by that amount, just by looking at the bills that has to be paid. fireservice.co.uk