Your financial life support system – unplugged….

Monday 15th August 2016

In this issue of Money Truths….

  • Nightmare at the checkout tills….
  • Dirty money….
  • Your financial life support system – unplugged….
  • If you appreciate cash – pay in cash….

Nightmare at the checkout till….

Picture the following scene….

You’ve just popped to the supermarket for a few bits. You fill your basket and head for the tills….

The checkout girl asks you if you need help packing your bags. You tell her you’ve got that situation under control….

You pack your bags carefully – making sure to put the heavy items at the bottom so that the bread, the salad items and the soft fruit don’t get squashed.

As the years roll-by, you have grown wiser about the finer points of bag-packing. These days you know exactly what to do to avoid an earful off the wife when you get home….

‘That will be £34.65, please….’

You reach into your pocket, take a card from your wallet and swipe it across the machine. The process is supposed to be over in seconds. But there’s a problem….

The machine is taking longer than usual to accept payment. Instead of saying ‘Pin Accepted’, ‘Payment Completed’ or ‘Please Remove Your Card’, the machine is stuck on ‘Processing Payment’.… Click here to read more

A 7-year state of emergency….

Monday, 8th August 2016

In this issue of Money Truths….

  • Captain Carney fires the bazooka….
  • So what does it all mean?
  • A 7-year state of emergency….
  • The direction of travel….

Captain Carney fires the bazooka….

Three weeks ago the Bank of England’s Monetary Policy Committee considered it unnecessary to fiddle with the British economy. It wanted to wait-and-see before making a move.

Twenty-one days later that same committee felt it had waited and seen enough….

The bank’s forecasters had peered into the future and they didn’t like what they saw. They saw growth slowing to a standstill and the UK in recession. They saw 250,000 British workers about to lose their jobs. They saw house prices falling. They saw living standards falling. In short they saw the good ship Great Britain heading for the rocks.

Up on the bridge Captain Mark Carney and his crew made-ready to make the necessary adjustments….

On Thursday they pressed the buttons and pulled the levers that will guide the ship into calmer waters – at least that’s the hope….

Interest rates were cut for the first time in 7 years. The committee lopped off a quarter point. The new rate of 0.25% is the lowest ever.… Click here to read more

Confusion, conflict and contradictions….

Monday 1st August 2016

In this issue of Money Truths….

  • An unanticipated spurt of growth….
  • The unfathomable jigsaw puzzle….
  • The gloomy and the glum….
  • Reasons to be cheerful….
  • Sometimes we expect too much of information….

An unanticipated spurt of growth….

The really big news last week came on Wednesday when the Office for National Statistics reported that Britain’s Gross Domestic Product (GDP) had grown 0.6% during the second quarter of 2016 – the three month period up to June.

GDP is a measure of economic activity and represents the total value of goods and services produced and consumed during the period in question.

Analysts expressed surprise that the economy had grown as much as it had. Prior to last week’s announcement they’d been talking down expectations.

City of London economists – the real top-drawer & top-dollar prognosticators – had predicted Q2 growth of no more than 0.4%, in line with growth in the first quarter of the year.

The fact that these well-funded, well-resourced and well-paid seers into the future fell short with their clairvoyance is neither here nor there. Getting it wrong is what they do at least half of the time.

The important thing is that unanticipated spurt of growth.… Click here to read more