Friday, 4 April 2014

House price rise is result of QE?

The cumulative rise in house prices is the direct result of the Quantitative Easing the government has been implementing , It is the amount of excess liquidity that the big investment  houses and banks have in their accounts  and it has the effect of devaluing the currency and as a result the house prices are rising , There is no real increase in value but an uneven distribution in the way the QE money has been distributed, This will no doubt be followed, if interest rates rise, in a dramatic fall in living standards as the value of money in their pocket will fall dramatically.

This will surely be a second collapse in our currency  since 2008,  and will force yet more instability. We must learn lessons quickly and halt this false economy of boom and bust that the governments around the world have said they would do, but events are showing us again that they are failing to see the signals fast enough and then react also quickly enough.

QE has to be stopped quickly and the banks should be restricted in making new money by issuing loans without any reserves.

Economic growth should be produced by sound investments in people and homes, with interest rates that are stable and sustainable, without the need of speculation and gambling .Investments in business and infrastructure should be based on long term feasibility and real return on investment , not only in terms of money but also to the side benefits to society and environment.

Moral ,social, and ethical issues should come first over the materialistic and greed of individuals and corporations, however there must also be flexible enough to allow new ideas to flourish and bear fruit.

R&D should be maintained at a higher level with all education establishments taking an active role in this, so that all the people feel they have an active interest in the way society is being developed and not just an elitist minority calling all the shots.

Universities in particular have a new role to play, in doing real research into real problems in all fields especially at the PhD level, where so often time and resources are wasted in repeating work that is already done or not of any long term use. Real projects for real situation and real problems.

My children are in a quandary of what to do, how sustainable is the present housing situation and if it is sustainable will they be able to feed themselves?  Should they move to cheaper areas or countries , like my older son who is in Canada with house prices nearly half of the UK  or go to Holland  where my wife comes from, and there, there are so many houses for sale its so cheap to live. maybe even the same in other parts of Europe. But our children the same as most I suppose have a poor grasp of language, thanks to our schools and media lack of interest in Europe. Then there is the uncertainty of job security that place more fear behind everyone.

How can anyone live with this fear held above them all the time,I can fully understand that individuals start fighting for their survival , by doing anything . almost , legal, dicey or illegal to be able to live.

Why cant we just live in Britain. work hard , live in a warm uncongested house and feel free from fear of being just incapable and fear of losing everything?

Live the dream . How can we when the goal post keep moving  higher prices  and an uncertain future!

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