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Income Tax & The national Debit.

Community Veteran
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Registered: 02-08-2007

Income Tax & The national Debit.

No sure if anyone saw the program on TV last night regarding the National Debit.
The last part of this 90 minute program was very interesting in that a number of financial experts claimed that Large reductions in all Taxes would be the best way out of the present situation with those people on a low income paying nothing at all.
The thinking is that if people have more money to spend (instead of the government spending it on their behalf) this would help the economy.
As an example Hong Kong have very low taxes, yet the economy is booming along with services in education, health etc far superior to ours.
The figure also seem to indicate that the more the Government controls rather than the Private sector then the worse the situation is.
I Guess there must be some flaws in the above as it seems too simple ?
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Community Veteran
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Registered: 01-08-2007

Re: Income Tax & The national Debit.

IT won't happen here for at least another 2 Governments.
Ministers here are too stuck behind the times to accept that they could ever be wrong and us people could ever be right. We're all low life scum and we don't know anything about their complicated jobs where they work very hard and get underpaid.
I need a new signature... i'm bored of the old one!
Community Veteran
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Re: Income Tax & The national Debit.

There is a problem with that argument.
It will work in a closed or semi closed environment but when most of the surplus money is spent on imports then it kills the balance of payments, the pound sinks like a stone and inflation rockets up which leaves us all in a mess.
Community Veteran
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Re: Income Tax & The national Debit.

@gleneagles, missed it sounded interesting.
Hong Kong is a bit of an anomolie, the Banks (Standard Chartered and HSBC) actually print the Honk Kong Bank Notes.
I understand (I could be wrong) there is some form of regulation in place not allowing the Banks to print more money than they have reserves.
@Oldjim good point, but won't QE ultimatly lower the value of the £ and
Quote from: Oldjim
inflation rockets up which leaves us all in a mess.


Community Veteran
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Re: Income Tax & The national Debit.

What is QE
If it does reduce the value of the £ then same result although compared to Ireland we are in good shape.
I was walking out of Sainsburys yesterday and notice a headline in the Irish Times - emigration 100,000 - I wonder where they are going
Community Veteran
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Re: Income Tax & The national Debit.

Community Veteran
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Registered: 15-06-2007

Re: Income Tax & The national Debit.

Agh!!
I wondered what a boat had to do with it  Embarrassed
smiffyb36
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Registered: 11-05-2010

Re: Income Tax & The national Debit.

Quote from: journeys
@gleneagles, missed it sounded interesting.
Hong Kong is a bit of an anomolie, the Banks (Standard Chartered and HSBC) actually print the Honk Kong Bank Notes.
I understand (I could be wrong) there is some form of regulation in place not allowing the Banks to print more money than they have reserves.

Not actually true as they use fractional reserve banking systems. This means essentially that any reserve they have can create money out of thin air, conservative mathematics put this in the region of 9 billion created for every 1 billion in reserve, devaluing the currency already in circulation as there is no basis for this money or value to be derived from elsewhere. Then add to this the interest applied to the original loan (the reserve) then the interest applied to the money released into the economy and it makes for a scary thought - that none of these systems work as debt is build in and people default as part of the system so we're doomed to continually repeat the same processes again and again - there isn't enough money in the system to cover the original debt so once everything is paid there is no money left!!
jim:green quote tags added for clarity mod:end
smiffyb36
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Registered: 11-05-2010

Re: Income Tax & The national Debit.

If you have time and interest it's worth watching the first 30mins of this video explaining money mechanics in modern banking systems, sounds boring but it is very eye opening! Some of it can be a bit far out if you watch the whole thing but the money mechanics part is very very interesting, it links to sources and cites the money mechanics paper produced by the fed reserve in the USA with examples to show where the info has come from.
http://vimeo.com/13770061
smiffyb36
Grafter
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Registered: 11-05-2010

Re: Income Tax & The national Debit.

Sorry for multiple posts
I may have to eat my words, struggling to find info on the type of banking system used in HK, tho the previous posts stand for US, UK and the likes.
Community Veteran
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Re: Income Tax & The national Debit.

@smiffy, thanks for the clarity, knew it to be different but didn't know how.
On a recommendations on this board I watched "Money as Debt" I & II, quite enlightening.