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UK Citizens Being Sold Down the River - Quantitative Easing Plus Inflation and More

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posted on Mar, 29 2012 @ 04:14 PM
Now let me please start by stating that I am by no means a financial expert and I am merely just saying it how I see it so if you spot any inaccuracies then please feel free to point them out.

Now Quantitative Easing, what is it and why do the government say we need it?

Well quantittative easing is effectively where the centeral bank prints money and places it into circulation as a "preventative" measure against economic downturns.

This is what George Osbourne had to say about it in October 2011

The Chancellor insisted instead it was an ‘appropriate tool’ given the gathering economic gloom.

So what does this mean for average Joe?

Well in the UK before Quantitive Easing started taking place in March 2009 the UK had an estimated £1.7 Trillion in currency value this is now (Oct 2011) standing at £1.9 Trillion thanks to Quantitive Easing, thats got to be good for us right? WRONG. The trouble is that the £1.9 Trillion we have now is worth around the same in real terms to the £1.7 Trillion we had in 2009. The reality of what is going on here is that the Government has effectivly raided everybodys savings account and every future £ they earn of around 10.5% of value in the form of re-printed money. The Government then takes this re-printed money and purchases its own Guilts which brings the money back into the market by funding the public sector and other projects.

Isn't this theft I hear you say? well yes it is in every sense apart from it is legal.

Where else have we felt the pinch of the Government?

Well sadly this currency devaluation is not taken into account in the official Government inflation figures, so if you were one of those lucky enough to have had a pay rise in this time period then this would not have been taken into account. Also during this time the country has been on the receiving end of poor inflation figures.

Since April 2008 up until Feb 2012 Inflation has been running at its lowest of 1.1% in Sep 2009 and has peaked at 5.2% in September 2011 with it running at an average rate of 3.461% between April 08 and Feb 12 (this is an annual loss).

And the tripple whammy comes when we take into account tax rises in that period, this is very difficult to quantify so I will just mention the fact that V.A.T, has risen from 15% to 20% in that period, stealth taxes like Insurance Premium tax have risen from 5% to 6%, the upper limit for the 40% tax bracket has lowered considerably. N.I. payments have gone up by 1% payable by the employee and various other taxes like Alcohol, Tobacco and Fuel duty have increased.

So overall what has this meant for the UK Citizen?

Well every penny they owned in 2009 has decreased in value to the tune of 10.5% and everything they earned since has been lower by 10.5%.

Since 2008 there has been 4 periods of inflation at an average of 3.461% per annum equating to a 4 yearly loss of 13.846%

I am now going to use a bit of an estimated guess at saying peoples taxation has increased and eaten (conservitivly) another 5% of their cash.

I know this is a crude way to get to this figure but since 2008 each UK Citizen has lost around 29.346% in real terms value of take home cash.

This means that Average Joe's wage of £26,100 (in Feb 2012) is worth the equivelant rate of £18,440.69 (April 2008), that is a huge , HUGE loss and the sooner the SHEEPLE realise that we are being robbed in broad day light the better.

Wake up people, we need a revolution here in the UK before they have taken us for everything we have.

Below is a list of sources I used to collate some of my information, other information can be cross referenced with a previous post I did about the UK Petrol taxation con which I will link also.
edit on 29-3-2012 by michael1983l because: (no reason given)

posted on Mar, 29 2012 @ 04:23 PM
The current finance systems are based toward a corporate profit and so (they say) to create more jobs etc

In reality the banks and gov aim to make sure the average man is in debt and borrowing for things he wants and not needs to be a "good consumer" its no secret that scams and tax evasion exist because the gov is happy with the model, a few bankers get rich but the average man is still right where they want them.

I blame the boom in the 80s and 90s making people feel far too safe and reliant on everything thats shoved in their face.

You cant fight or afford wars around the world without distracting the common person with shiny toys they cannot actually afford. Think a financial system that does whatever it wants providing the "baby's mobile is spinning" and keeping everyone worried about their own debt than their country's while making up things as they go along for the bigger picture they want to hide.

posted on Mar, 29 2012 @ 04:23 PM
It's a massive scam. Basically banks receive interest free cash, then lend it out with interest. I don't know what the solution is. We seem to be being failed by our elected officials on both sides of the house, who are more concerned with political point scoring and feathering their own nests than they are about the people who voted for them.

posted on Mar, 29 2012 @ 04:32 PM
The trouble is that the government keeps taking our money like we are its piggy bank for a rainy day, peoples living standards a plummeting and it is not their fault. People on modest wages are finding themselves in positions of default on their mortgage due to this. It is not fair and I cannot believe that the Media has not reported the real effect all that has been happening has had on people's incomes.

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