Keir Starmer

[Chris in London]

This is a classic misconception often spouted in hard left circles.

Technically you can print money to pay of your debts but the reality is that in doing so you devalue you currency by the same amount. This ultimately leads to a self fullfilling cycle known as hyperinflation and a total collapse of a currency.

Zimbabwe is the best example of this:

Hyperinflation in Zimbabwe - Wikipedia

en.wikipedia.org

The reason why that argument doesn’t work in current circumstances is that everyone is in the same boat. Normally if Zimbabwe prints off money all the world economies think ‘fuck that’ and you end up with equilibrium - the amount of new money they create is exactly equal to the hyperinflation it creates.

Nobody gives a shit about that now because we’re all doing the same thing.

Quantitative easing works - but you would be completely right to say only works - when everyone is at it. If the U.K. prints another trillion pounds it won’t hurt our economy provided the US and the EU countries all do the same thing.

The concern will be if other economies emerge from the crisis before we do, and are in a position to stop printing money. If we still need to at that point, that’s where we hit the buffers.

Which is reason 3265 why Brexit is a fucking stupid idea, but that’s another story.

 

[Gareth Barry Conlon]

The reason why that argument doesn’t work in current circumstances is that everyone is in the same boat. Normally if Zimbabwe prints off money all the world economies think ‘fuck that’ and you end up with equilibrium - the amount of new money they create is exactly equal to the hyperinflation it creates.

Nobody gives a shit about that now because we’re all doing the same thing.

Quantitative easing works - but you would be completely right to say only works - when everyone is at it. If the U.K. prints another trillion pounds it won’t hurt our economy provided the US and the EU countries all do the same thing.

The concern will be if other economies emerge from the crisis before we do, and are in a position to stop printing money. If we still need to at that point, that’s where we hit the buffers.

Which is reason 3265 why Brexit is a fucking stupid idea, but that’s another story.

Not quite right. That applies to exchange rates but not the underlying value. If every major currency doubled the amount in circulation overnight then the value of commodities would also double. A barrel of oil at 1$ would become $2. It takes time for the market to adapt but you can not tinker without there being a reaction. If you give everyone a million pounds it would not mean we would all get to go out and buy a £1m mansion -as there is a limit to the number of mansions - the value of homes would rocket as everyone becomes a buyer. There is a short term effect and if you keep chasing that effect eventualy the curency is almost worthless.

 

[Chris in London]

Not quite right. That applies to exchange rates but not the underlying value. If every major currency doubled the amount in circulation overnight then the value of commodities would also double. A barrel of oil at 1$ would become $2. It takes time for the market to adapt but you can not tinker without there being a reaction. If you give everyone a million pounds it would not mean we would all get to go out and buy a £1m mansion -as there is a limit to the number of mansions - the value of homes would rocket as everyone becomes a buyer. There is a short term effect and if you keep chasing that effect eventualy the curency is almost worthless.

It is obviously a gross simplification of a complex problem for the purposes of a thread on a football forum, but hyperinflation in Zimbabwe is largely caused by exchange rates, not underlying values. If you are importing grain (say) and you double the amount of money circulating in your economy without doubling the value of your underlying assets, the value of your currency has halved from the perspective of anyone outside your economy. So grain costs twice as much. Inflation.

If all the major economies of the world double the amount of money in circulation, the value of their underlying assets is halved but there is no inflation.

What quantitative easing does is increase circulation. It is a device that avoids economies from stagnating through lack of cash flow. Of course it has long term consequences, but hyper inflation, if done in concert with other major economies, should not be one of them.

 

[ganganvince]

 

[blueinsa]

That's cleared that up then.

 

[ganganvince]

That's cleared that up then.

Yep no fence sitting there.

 

[blueinsa]

Yep no fence sitting there.

It's not his fault. Politicians don't have any answers to the virus. It's an exercise in desperately trying to sound like you do.

 

[Mazzarelli's Swiss Cheese]

All he is doing is trying to manoeuvre himself into a position to gain maximum possible personal political advantage from covid. Every bit as crap as govt incompetence.

 

[ganganvince]

It's not his fault. Politicians don't have any answers to the virus. It's an exercise in desperately trying to sound like you do.

Think he will think long and hard before taking a position again done it twice this week and neither went well

 

[Ancient Citizen]

Nobody knows what Labour policies are, or what their Covid position is, just constant criticism without alternatives, or solutions. The only thing he’s done is attempted to purge his own party.
Then again, when you’re that far behind, it can’t be easy.

 

[mat]

Considéring one of the writers of spitting image is a card carrying full worshiping blarite. Their spoof of him leading the party with children in the main cabinet positions has nailed him.

 

[Fame Monster]

Some strong words about Keith from Diane Abbott, basically accusing him of backing remain to oust Corbyn from the party.

 

[Rascal]

Diane has a point

 

[bluethrunthru]

Some strong words about Keith from Diane Abbott, basically accusing him of backing remain to oust Corbyn from the party.

and the stupid in-fighting goes on. Politician acted politically to further his career in politics is hardly news.

 

[blueinsa]

Diane has a point

Yeah I don't think she has told us anything we didn't know there.

He is a politician.

 

[Churchlawtonblue]

Crazy from Abbott, whether she has a point or not, politician has ambition isnt really news is it? The disappointing thing is that Starmer hasn't exactly capitalised that much on the mess the Tories have made of covid. That said I think he will still walk the next GE if BJ is still in charge. He also had to ditch remain to stand a chance of winning the next GE. The best we can hope for is a clean break from the EU under this Government and then when Labour comes to power in four years time a resetting of the clocks back to the middle ground with a clean slate to work with. And an important part of that clean slate is the freedom to support our core industries such as steel, shipbuilding etc where needed. If this covid crisis has taught us anything its that we shouldn't become too reliant on cheap imports and cant afford to lose entire sectors of our economy.

 

[Rascal]

Crazy from Abbott, whether she has a point or not, politician has ambition isnt really news is it? The disappointing thing is that Starmer hasn't exactly capitalised that much on the mess the Tories have made of covid. That said I think he will still walk the next GE if BJ is still in charge. He also had to ditch remain to stand a chance of winning the next GE. The best we can hope for is a clean break from the EU under this Government and then when Labour comes to power in four years time a resetting of the clocks back to the middle ground with a clean slate to work with. And an important part of that clean slate is the freedom to support our core industries such as steel, shipbuilding etc where needed. If this covid crisis has taught us anything its that we shouldn't become too reliant on cheap imports and cant afford to lose entire sectors of our economy.

Your hopes for Starmer are way above mine.

Diane's point as I see it is that Starmer cost the Labour party the chance of being in power now because his ambition overrode that of the party.

The ****,

 

[Churchlawtonblue]

Your hopes for Starmer are way above mine.

Diane's point as I see it is that Starmer cost the Labour party the chance of being in power now because his ambition overrode that of the party.

The ****,

sorry Rascal but imo Corbyn cost labour the chance of being in power as his policies were just too far fetched for the british public to accept. That and his foolish brexit policy. I know staunch labour voters who thought just that. Im just not sure what Starmers policy is at the moment, is he just sitting back and watching while the Gov lurches from one mess and cock up to another. Ie just biding his time.

 

[PannickAtTheDisco]

how anyone can side with Diane Abbott over anything, lol.

 

[blueinsa]

Your hopes for Starmer are way above mine.

Diane's point as I see it is that Starmer cost the Labour party the chance of being in power now because his ambition overrode that of the party.

The ****,

I will assume you mean his remain stance here?

She was every little bit as remain im afraid.