There is a circle about to form.. Here is the problems we 1. Debt high (Something like £1.4trillion in uk debt) 2. The current value of every property in the UK is something like £6+ billion 3. Increase in everything, except our wages 4. Increase in fuel prices 5. Increase in good costs 6. People cannot afford to buy the good, or would rather wait for prices to fall. 7. A massive decrease in consumer confidence.. With the 7points above, this is what will happen. 1. Less money in circulation (Happening now, effects already started) 2. Less people buying goods (Started, but they haven't hit biz hard yet) 3. Stock prices decrease as businesses hit hard (2-3months) 4. People still don't buy goods (2months - 1yr) 5. Prices will either fall or increase or stay the same. (sometime in the near future) If they fall, 1. Businesses will lose out on profit, some will go bust, but consumer purchases will increase slightly If they increase, 1. Even less people will buy, making it worse. If they stay the same, 1. The problem will only get worst. 6. House prices will start falling too (Already started slowing down, decreases will be seen by January at this rate) 7. If the prices go below the national debt level, thousands to file for bankruptcy. (Some peoples debt is nearly as high as the value of their house, if the value decreases, then it would be cheaper to file bankrupt than pay back more than the value of their house, causing bad mortgages and borrowing. This won't happen overnight. I am talking about 2-3 years here, perhaps even 10 years. One thing is for sure, in June 2009 we will be debt free forever.... i just hope it doesn't happen before this. Rob
The dollar is under problems, while the UK currency is currently under no problems. The UK is stronger than most countrys, but it is not fool-proof. Problems will start to arise soon, just watch. Rob