‘These people should be first up against the wall’

Tim Price has never really trusted economists. But there is a particular breed of economist that really sets him on edge – the central banker. In this three-minute rant, Tim explains how these people are destroying the value of “your cash, your investments and your life savings”.

How much of your savings are under threat? Well Tim thinks there are “Three ticking timebombs” that could seriously damage the wealth of the average investor this year. To find out more about how to protect yourself, you should watch this video.

14 Responses

  1. 29/08/2012, La La Land wrote

    Tim, I so agree and I am sure most people do agree with you except perhaps the ruling classes/ 1%. So tell me why is nobody listening or doing anything about it?

    Worse than that as if we weren’t in enough trouble it seems increasingly lightly that this Government will gets us involved courtesy of America and Israel in action against the Syrian regime.

    On both counts let the situation sort itself out without interference from our Government – on whose behalf?? Readers please write to your M.P’s stating that.

  2. 30/08/2012, Mark wrote

    Good video, but the flash player isn’t very good, try putting it in full screen on a 4:3 monitor and the picture goes horribly distorted. What was wrong with Youtube?

  3. 30/08/2012, Albert wrote

    If the banks were allowed to go broke it would cause social unrest of monumental proportions. All money in the banks would be lost in excess of £85,000. Surely cutting taxes for people so as they have money to spend and same for companies to encourage investment in business. I wish you would run through an example of how you see such a scenario play out, the pain the gain. Did everyone lose their savings in the bank or were they safe guarded?

  4. 30/08/2012, John Nic wrote

    Tim & James Ferguson are two of the most realistic people in the finance industry i know of 9i don’t know of many!). If anything i believe they understate the case. If things are as bad as they, and a few other enlightened souls believe, surely we need a plan: e.g. As soon as matters begin to deteriorate, move everything into cash (which currency?), then when everything has crashed, use the cash to buy assets, including precious metals (which ones?). THere view on a structured strategy in case of crisis would be welcome.

  5. 30/08/2012, Paul Gill wrote

    Everyone knows you are right, but it would be political suicide to do nothing and let the recession play out with widespread bankruptcies.
    Your correct proposal of letting market forces play out, forgets that there would be a drop in Tax receipts and an increase in Unemployment Benefit payments. I think Prime Minister Jim Callaghan, had a similar situation, he said “Oh well, it will be alright in the end. In the end we will all be dead!”

  6. 30/08/2012, Colin Selig-Smith wrote

    Tim. Excellent video. I like the format.

    Should go on the moneyweek channel along with the other Tim’s similarly excellent videos:
    http://www.youtube.com/user/MoneyWeekVideos

    I also happen to agree wholeheartedly with your view on bankers. If you’re going to allow fractional reserve banking you have to kill the banks when they inevitably fail. The problem otherwise simply grows and grows and grows.

  7. 31/08/2012, Peter Kellow wrote

    This is the classic neo-classical economist libertarian response to a problem caused by neo-classical economist libertarianism

    Not that QE is any good either. We need a complete new approach to economics that ditches the old defunct models – all of them

    Tim should start by reflecting on the following. All existing economic theories work with time standing still. But time, as Kierkegaard reminded us, goes forward.

    Real investors and business people know this which is why they never refer to Rothbard and his like in any of their decisions

  8. 31/08/2012, TRR wrote

    You don’t put enough blame at the hands of weak governments. CBs have bought (some) time for govts to clean house, but they can’t because the mess is too bad and politicians do not have enough character to make the case and let it happen. Two quotes that sum it up:
    “In a democracy you get the politicians you deserve.”
    “It has been said that democracy is the worst form of government except all the others that have been tried.

  9. 31/08/2012, Colin Selig-Smith wrote

    Peter,

    You think government/central bank created credit bubbles are libertarian in philosophy? They are certainly monetarist and in that way could be considered neo classical but definitely not libertarian.

    Ron Paul (one of the most prominent libertarians) in 2001… A decade ago…
    http://www.youtube.com/watch?v=KONpt9a6HrI

    Predicting the bursting of the US housing bubble 5 years before it happened. Before it had really even started blowing up.

    “All existing economic theories work with time standing still.”

    Um, nope.

    You may want to read up on your Austrian economics. It’s I think the one school which works from the premise that economics is psychology not physics.

    http://mises.org/daily/4390

    All of this… Predictable, but only the Austrians saw it in advance. Menger is to economics what Copernicus was to astronomy. All the rest, the Neo Classical school, the Chicago school, the Keynesians. Astrology… hand waving and tea leaves.

  10. 31/08/2012, JohnB wrote

    You are, of course, absolutely spot on.
    The reason that QE and all the other inflationary practices continue is because the people you mention as having first access to the money printed out of thin air are getting the vast benefits of fraud on a gigantic scale.
    They are counterfeiters And they are in effective control.

  11. 17/09/2012, Chester wrote

    Glad to hear someone as passionate about wiping out CBs as I am. Making a very vocal case in national media is a must to expose these unelected, unaccountable people. Worse still, Govt continues to protect them as the biggest beneficiary of a fractional reserve banking system that insiders sustain to their mutual advantage

    QE, along with other misguided inflationary policy goes directly against the core purpose of the BOE. It’s high time CBs became extinct, and that those running or advising them faced criminal charges for fraud, counterfieting & profiteering in a Govt protected racket

  12. 22/09/2012, TomJefs wrote

    Poor old Tim. He’s an emotionally, garbled man. He’s got a few armchair assertions which makes for good comedy but little else of value. Not a single fact or piece of evidence to show from another Money Week storyteller.

    If severe austerity in the form of a pie-in-sky “short, sharp shock” therapy so seductive to some had been avoided prior to 1930s and as a consequence of the Treaty of Versailles The Great Depression and Hitler’s rise to power would have been avoided.

    Learn from history. Economies must be disciplined, earn their keep and minimise severe, unintentional shocks.

  13. 23/09/2012, Grahame wrote

    There is the simple matter of justice. That is why those who are incompetent, fraudulent and insolvent should be allowed to go bust. Ordinary depositors (the innocent) should be 100% tax payer backed. Banks nationalised (as privately they are socially useless).
    Q.E. has nothing to do with silly politicians or bankers attempting to fix anything. It is about the useless and the greedy (politicians and bankers) inflating their debts away at the public expense. I agree with Tim, long may he live!

  14. 04/10/2012, Cilurnum wrote

    “Economies must be disciplined, earn their keep and minimise severe, unintentional shocks.”

    That’s exactly what automated systems on high frequency trading systems try and do. However, their very interference crashes the market because they all do the same things at the same time. Go figure…………

    Leave the price discovery mechanism alone.

Commenting on this article closed

MoneyWeek magazine

Latest issue:

Magazine cover
Heading higher?

Or are house prices set to fall?

The UK's best-selling financial magazine. Take a FREE trial today.
Claim 4 FREE Issues

'Would you rather upset God, or have Him just ignore you?'

In the first of three interviews with Merryn Somerset Webb, Hugh Hendry, manager of the Eclectica Fund, talks about what it takes to be a good hedge fund manager – and how he learned to stop worrying and love central banks.


Which investment platform?

When it comes to buying shares and funds, there are several investment platforms and brokers to choose from. They all offer various fee structures to suit individual investing habits.
Find out which one is best for you.


21 November 1969: The first permanent Arpanet link

A milestone in the formation of the internet, the first permanent Arpanet link was established on this day in 1969 between researchers in the United States.