It’s difficult these days to even define what money is. It can be coins in our pockets, notes in purses and wallets or numbers on bank account statements. Money can be just bits in a computer or tokens of any kind.
News from over the pond in the USA this week was that the rich have increased their wealth by around 15% in the past year. That doesn’t surprise me, the rich are getting richer all over the world. Governments print more money and it disappears. Are you getting your share? Or are you even worse off?
I keep getting emails telling me that there is a financial storm brewing. I don’t watch the video, they tend to ramble on and you’re none the wiser afterwards. They are after my money, I can be sure of that. So will the recession in the UK get worse? Or better?
Next Friday there is a Euro-millions draw and although the odds of winning the jackpot are over 100 million to one; we have a better chance in the UK Millionaire raffle. That will be creating 100 new millionaires next week and the odds are better. I think I will buy a ticket for that! I might be lucky! (more…)
If you burn paper money, do you destroy it? The answer is technically, no. The value of money is all about supply and demand and so if you burn a 50 pounds note, a 50 dollar note or a 50 Euro note; you are decreasing demand and making all the rest of the money in circulation more valuable. You may be destroying one note, but you aren’t destroying overall value! The Bank of England is currently doing the opposite, creating rather than destroying money but in doing so they are increasing demand and so making the money already in circulation less valuable. (more…)
All governments print money and come up with new ways to tax people but in the past few years they have been printing even more than usual and calling it quantitative easing. The British government has also introduced new taxes on things like insurance and increased VAT. How can people save for anything when the government keeps devaluing our savings?
The pound in our pockets isn’t the same, the more money they pump into the economies the less we can buy with our money. They create inflation and that forces up commodity prices like oil, gas, housing and food. (more…)
The Bank of England says it saved us from a double dip recession with quantitative easing, so why are things still stagnating? Have they really fixed anything or are they trying to inflate their way out of the problem of massive debts? We still appear to be suffering from higher prices, higher unemployment, higher energy and housing costs, crippling taxation and on top of that we have David Cameron running the country! (more…)