Tuesday, 4 October 2011

David Cameron: Spend or Not to Spend? That is the question.

David Cameron recommends that we pay credit card debts to help the economy. Did I hear correctly? Is this the same guy that talks about boosting consumer confidence? If you repay your debts faster, you are going to have less money to spend in the markets buying new products.
Let me give another you another example. One day they accuse the banks of not lending enough money and the day after they accuse the banks of lending irresponsibly. At the end of the day, the money you use to repay debts and to buy new products comes from the same pocket.
This kind of reasoning is not merely a Conservative kind of thing. Do you remember Labour in 1997? They told us that there was a deficit of 30,000 new homes per year. So, this is why they allowed in more than 2.5 million people since 1997 and on top of that they built less new homes than ever before.
Speculation supported by political parties wanting to have 'the feel good factor' led us into the mess we are in today. A 90,000 British Pound home of 1997 is worth today about 450,000 British Pound. Why? 'You have lot of equity in your home', they said. 'Have a vacation! Buy a new car!' 'Under Labour, you are rich.'
Speculators made money during the so called Golden Years that never were and speculators are making loads of money today gambling in the shares markets. On Monday, 'shares markets collapse'. On Tuesday, 'shares markets recover'. On Wednesday, 'shares markets collapse'. It goes on and on. While we struggle to pay bills, the very same speculators that created the crisis are making money out of the crisis.
What do politicians do? They continue printing money and borrowing money to lend it to countries that cannot afford to pay it back. What do ordinary people do? They pay and pay and pay. How do we call this state of perpetual debt? I call it slavery.
David Cameron also forgets that hundreds of thousands of families only manage to get to the end of the month buying food with credit cards and many families have been found paying mortgage instalments with credit cards.
By the way, some salary rises create inflation and other salary rises do not create inflation and are just a response to keep salary rises above the rate of inflation. So, please, don't complain when utility bills go up when oil prices go down. Don't complain either when railway fares go up by about three points above the rate of inflation. Aren't this the kind of messages you and I hear on a daily basis?
The logic of the so called mainstream political parties is mind boggling but... guess what... most people keep voting for them. 

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