Shopping Cart
Your Cart is Empty
Quantity:
Subtotal
Taxes
Shipping
Total
There was an error with PayPalClick here to try again
CelebrateThank you for your business!You should be receiving an order confirmation from Paypal shortly.Exit Shopping Cart

Honest Information, Profitable Trading

Durudarshan - Investment Analysis

My Blog

Blog

How stimulating!

Posted on March 7, 2013 at 4:30 AM
Cup of herbal tea, a little square of chocolate....?  Perhaps a cup of decaf, smooth as milk?
 
Today is Thursday, when the Bank of England and the ECB will issue some statements regarding
the interest rates (which are already at an all-time low) or other measures to stimulate the economies
in Europe.
 
After the recent aggregate £375 Billion pumped into the U.K. economy, Sir Mervyn King has to ponder the question of whether another £50 Billion stimulus would be prudent and necessary.  Are the MPC allowed to open their minds to him? 
 
If I had the privilege of sitting on the MPC (which I would welcome at some point in the future, even gratis), I would suggest looking at it this way:  the recent stimulus of £375 Billion quantifies at around for a population of 66 million, at £5681 per head.  By contrat, the U.S. economy, with a population of 330 million, has had a recent stimulus post-2008 of 3T, quantifying at $9090 per head.  At current exchange rate for cable, that is £6060 per head in U.S., so the U.K. would be justified in doing another £379.60 per head, or....well, simple multiplicaion by 66 million....another £25 Billion or so to bring it to par with the U.S. (who will be probably stimulating further).
 
The British landscape shows a picture of shops which are not too busy, but you can't blame people for not spending what they haven't got.  The average social security payment is between £42 and £92 per week, just about enough to eat some simple food and drinks, so money for buying clothing or beds or curtains and such things is a bit scarce, compared to the bankers bonuses (being awarded from money which the banks are hoarding from the stimulus).  More of the stimulus needs to go to retail customers, either through increase in social net, or through direct lending at sensible rates, so the poor don't become victims of the sharks.
 
An additional stimulus of £25 to £50 Billion would be in order, I believe.  Not only that, to feed in an additional £5 per head may require stimulus of upto £275 Billion in due course, leaving scope for another £225 over the next year or 18 months.  That really would be sufficient to stimulate the economy in England, and make it the green and pleasant land it is, with a landscape of thriving businesses and factories, and restaurants (Chinese, Indian, Italian, Greek, Thai, Lebanese, et al), and proud house-owners and expensive cars being driven at a sedate pace. 
 
Such is how it should be, Sir Mervyn.
 
Kind regards,
Duru-darshan.
 
 
 

Categories: Best in the Industry, China - positive signs, Credit Easing, Diamond Jubilee and Olympics, Diamond Jubilee Year and Paralympics, Divine Guidance, Eike Batista, 10th Richest Man in the World., Euromillion Lottery Winners, Expansion the key, to avoid recession in midst of plenty., Free Money and grants for U.S. citizens., Help save High Street stores in Britain, Housing - Social and Improvements., Investment Analysis and Management, Job creation for youngsters in U.K., Jobs and growth, Micro and macro - chocolate, fruits, money., Money for 18-24 year old Entrepreneurs, Money supply, More libraries, free books., Personal three wishes for 2012, Selective Immigration, The Chancellor's Autumn Statement, The price of Oil, The Queen's speech to Parliament, The US Housing Market, Website traffic streams, Welcome, Worldwide Economic Recovery

Post a Comment

Oops!

Oops, you forgot something.

Oops!

The words you entered did not match the given text. Please try again.

5 Comments

Reply celine bag
11:39 AM on March 22, 2013 
decorate the paperwork along with supplies. Therefore, will be both equally beautiful along with simple functioning females select a couple of crucial aspects of the arrangement.
Reply cheap replica rolex
11:39 AM on March 22, 2013 
This is certainly Celine's edge. Not only beautiful, style style, also, strong along with resilient.
Reply Tido
4:45 AM on December 27, 2018 
Your blog is really a good platform to get informative posts. It is really a helpful platform.
download snipping tool windows 7
Reply Dica
2:16 AM on December 28, 2018 
Glad to read about this blog. The stories you share on this site are worth to read.
bubble shooter game free online
Reply beetalk free download
6:51 AM on January 19, 2019 
I wanted to thank you for this great read!!
0