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
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
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)