Just cant get my head round whats being said and whats going on!
Today they are warning that utility bills will be going up by 40% thats on top of food prices fuel etc. The Bank of England warns it will be puting up ontrest rates to "curb inflation ". Now hold on a mo here ----------- intrest rates up , means people wont be spending more as morgages and loans go up. less cash in the market place means people out of work and even less cash going into the economy, and the economy is what they want to grow ????????
HM Gove sits on its hands and says "not our problem it a world thingy". The UK fishing fleet anounced this week that they would have to stop fishing as their fuel costs have gone up 100% in 0ne year, and they are fishing at a loss. they asked for emergancy aid as the fleets of France and spain have received HM Gov said no !!!
Me and my family are lucky Mum has enough in the bank not to worry to much about the price of gas etc. I have paid our mortgage off and get a good screw if i feel like working---------------------------- but what about thise millions of old folks who aint got the wedge and the familys who are just keeping the heads above th high tide mark ? big big big problem and i dont hav 1 % belief this Goverment have clue what to do-- heads are firmly in the sand and hoping it will all go away.
It must have an affect on crowds next season,mainly away support i would think.
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If you really think the government have nothing to do with interest rates then I'm stunned....
GH. The point of putting rates up is to dampen spending and rein in the economy. They want it to grow but at a steady pace. Unfortunately this mornings retail spending data has made an interest rate rise almost certain within the next month or two. The problem they have is that rate rises will only dampen domestic spending, i.e. retail, but will do nothing to curb the huge impact of the cost of oil, gas etc.
Invading them makes the price go up. They are actually trying diplomacy at the moment and finding they are not very good at it.
Dip, diplo, Diplomacy? Sorry Brunello no idea what you are talking about.
Anyone who also looks at shares i suggest you take a gander at copper,steel,iron ore and aluminuim. They will rocket in price for abour 5 years as China is out there seting up huge mega deals for this stuff. Just when the UK needs steel and aluminim for the Olympic mega sites "o f**k its all gone east" they of course will get it at a hugely inflated price and the costs to you and me for the Olympics will be higher and higher and higer.
Not just stadiums in East London either : - (
Two Sheds.
He also said house prices would fall.
Dont we all look stupid now.
I am no expert but the increase in inflation is not consumption based its lack of supply and increased demand from the developing world. A weaker pound will boost our manufacturing sales abroad. Can't really see that raising interest rates is gonna help.
It is not the people who had 100% mortgages or more, its normal people who are gonna take huge hits in the coming months when their house has depreciated and they can't finance a remortgage when they come off fixed rates.
I cant believe I'm talking seriously to Father Christmas................
I don't think that it's consumption that's so high but the amount of personal credit that individuals have. Access to cheap credit has fueled a decade of growth, with home prices tripling over the past decade but also the avialbilit of cheap credit cards has enabled people to overspend on consumer credit. British consumers owe £1.35 trillion on credit cards, mortgages, and other consumer loans.
Inflation had been low until quite recently so does the argument that growth fuelled by consumer debt is causing the problem stack up, growth has been quite steady its not through the roof? I wonder therefore if raising rates its going to help, its more likely just going to push us closer to a recession. In my view the reason for inflation is mainly the soaring costs of energy which are passed on to consumers. I am not too sure what the government can really do about this.
The credit crunch is hurting people due to the booming housing market which has forced people to stretch themselves. The boom has been fuelled by too much/too cheap credit and lack of supply in certain areas. Bringing in better credit controls on lenders might have been the answer to the housing boom/bust reducing demand/risk was ignored, and building more houses to increase supply which has been attempted
As for year on year growth I think this has been maintained partly by a huge increase in government spending which unfortunately has been accompanied by huge government borrowing and has not been that wisely spent, this sort of growth will be hard to sustain. We need growth in products be they hard or soft that can be sold here and abroad.
I'm pleased you see things this way as well. The price of oil has shot up some 400% since MR Bush decided to invade Iraq
(BTW I've heard it said that if Iraq was producing to full capacity the price of oil would be nearer to 90 cents per barrel).
This has got to have a huge impact on everything that needs to be transported.
Rather than the B of E or the bank of Australia raising interest rates, they should instead be looking to revise their inflation targets in view of this huge rise in the price of oil.
Yes, credit has been far too easy, and hopefully many lessons have been learnt in this respect. However raising rates will mean that many will default on these loans, houses will be repossessed, workers will be laid off and companies will go out of business. Quite what purpose this will serve, I have no idea.
Interest rates here are much higher, my mortgage is 8.7%, and they are talking about yet another rise in interest rates in August. This against a backdrop of a very strong Aussie dollar and a booming economy.
The Bank of Australia seems intent on taking the economy into a recession however, just in order to keep inflation within the target range.
Great discussion, would be interested in your thoughts
Oz with a commodity based economy and all that gas being transported to China should be suffering less than the UK