Technology3 mins ago
0% interest rate!
I am scratching my head here, I'm no economist so how are the prices in the shops at an all time high?
How is the bank-lending rate so high, when only savers are suffering?
Do we need a high inflation rate to enjoy the comforts of life?
Confused.commmmmmmmm
Interst rates are the lowest they have been since the 60s!!!
How is the bank-lending rate so high, when only savers are suffering?
Do we need a high inflation rate to enjoy the comforts of life?
Confused.commmmmmmmm
Interst rates are the lowest they have been since the 60s!!!
Answers
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Rather depends what sort of loan you're talking about.
My mortgage is the lowest it's ever been probably less than a quarter of what I took it out at!
The last set of inflation figures showed this up strongly - exchange rates spiking before readusting gave you the UK with about 3% inflation if you didn't have a mortgage but at 0% if you did
Why do you say the bank lending rate is high?
Not one of these overdrafts is over 5% and some are down to 1.1% and even 0%
We need a certain inflation rate. If we get into deflation people don't buy things because prices keep getting cheaper.
But now it's difficult because some people are benefiting and others are suffering
My mortgage is the lowest it's ever been probably less than a quarter of what I took it out at!
The last set of inflation figures showed this up strongly - exchange rates spiking before readusting gave you the UK with about 3% inflation if you didn't have a mortgage but at 0% if you did
Why do you say the bank lending rate is high?
Not one of these overdrafts is over 5% and some are down to 1.1% and even 0%
We need a certain inflation rate. If we get into deflation people don't buy things because prices keep getting cheaper.
But now it's difficult because some people are benefiting and others are suffering
I think we're being conned by statistical contortion and distortion probably orchestrated by the not so noo labour coven and its spinmiester Dark Lord Mandy in particular. Lies, damned lies and statiststics - and Mandelson !
Inflation is still with us and set to rocket sometime in the not too distant future I'd bet - with "Quantative Easing" (just printing money) already kicking in to assist whoever is in Government to help repay the national debt - high inflation amounts to extra stealth taxation by the backdoor - people who have saved and on fairly fixed incomes - largely pensioners - and already hit very hard - will be used and abused some more till the pips squeek !
Inflation is still with us and set to rocket sometime in the not too distant future I'd bet - with "Quantative Easing" (just printing money) already kicking in to assist whoever is in Government to help repay the national debt - high inflation amounts to extra stealth taxation by the backdoor - people who have saved and on fairly fixed incomes - largely pensioners - and already hit very hard - will be used and abused some more till the pips squeek !
Generally most professional economists don't consider cynicism and "I'll bet it'll all go wrong" as one of their main analytical techniques.
In normal circumstances quantitative easment would cause inflation to go up. But with inflation dropping and possibly going into deflation this is a good thing.
Do not confuse this with the reckless printing of money that is going on in Zimbabwe or went on in Germany after the first world war.
This is a careful introduction of a bit more money and watch the effect. A couple of billion here and there.
Look at the numbers
�75 billion is allowed for it sounds a lot but the UK GDP is over �2 trillion
That's just a few percent.
The Americans are being much more aggressive planning $1 trillion on a GDP of $13 Trillion.
Of course you could always vote George Ostrich for chancellor and persue the "lets hope it all goes away" policy
In normal circumstances quantitative easment would cause inflation to go up. But with inflation dropping and possibly going into deflation this is a good thing.
Do not confuse this with the reckless printing of money that is going on in Zimbabwe or went on in Germany after the first world war.
This is a careful introduction of a bit more money and watch the effect. A couple of billion here and there.
Look at the numbers
�75 billion is allowed for it sounds a lot but the UK GDP is over �2 trillion
That's just a few percent.
The Americans are being much more aggressive planning $1 trillion on a GDP of $13 Trillion.
Of course you could always vote George Ostrich for chancellor and persue the "lets hope it all goes away" policy
Jake
I am truly glad you can be optimistic and not cynical about economic experts efforts to extricate this country from the economic mess we're in. They say for every economist theres a different opinion - and whilst it may not be quite that bad theres a lot of disagreement among them over what to do. Even the governer of the Bank of England and our government disagree !
I find all this "expert " disagreement the most frightening thing. All these professional experts - economists, politicians and bankers etc. - yet we're in the biggest economic mess since the great depression or maybe ever.
Economics is an imprecise science which deals with human economic / financial behaviours which are not always that predictable. Arent a load of economic experts blaming the ultimate expert - the economic guru, Alan Greenspan - for his failure to forsee and therefore prevent the very deep USA/global economic crisis arising and developing. Indeed I think I've heard he now blames himself to some extent.
Gordon "prudence" Brown, the ultimate iron chancellor, claimed repeatedly that he had ended boom and bust - enough said.
From all I've heard and seen its far more logical to be cynical and pessimistic than optimistic - that includes anything that's being done to control inflation/deflation including Quantative Easing. Inspite of the theory of how QE will work to save us - based on the "expert" proficiency over the last years - unlike youself, I wouldnt bet on it. I sense from what I see and hear inflation is still with us and likely to rise to well above 2% target - although I feel hyperinflation is extremely unlikely - touch wood !
I do very much hope Im wrong and everything shapes up as smoothly as you appear to suggest - but i am absolutely sure there is no certainty about when and if we will get back to economic "normality"
I am truly glad you can be optimistic and not cynical about economic experts efforts to extricate this country from the economic mess we're in. They say for every economist theres a different opinion - and whilst it may not be quite that bad theres a lot of disagreement among them over what to do. Even the governer of the Bank of England and our government disagree !
I find all this "expert " disagreement the most frightening thing. All these professional experts - economists, politicians and bankers etc. - yet we're in the biggest economic mess since the great depression or maybe ever.
Economics is an imprecise science which deals with human economic / financial behaviours which are not always that predictable. Arent a load of economic experts blaming the ultimate expert - the economic guru, Alan Greenspan - for his failure to forsee and therefore prevent the very deep USA/global economic crisis arising and developing. Indeed I think I've heard he now blames himself to some extent.
Gordon "prudence" Brown, the ultimate iron chancellor, claimed repeatedly that he had ended boom and bust - enough said.
From all I've heard and seen its far more logical to be cynical and pessimistic than optimistic - that includes anything that's being done to control inflation/deflation including Quantative Easing. Inspite of the theory of how QE will work to save us - based on the "expert" proficiency over the last years - unlike youself, I wouldnt bet on it. I sense from what I see and hear inflation is still with us and likely to rise to well above 2% target - although I feel hyperinflation is extremely unlikely - touch wood !
I do very much hope Im wrong and everything shapes up as smoothly as you appear to suggest - but i am absolutely sure there is no certainty about when and if we will get back to economic "normality"
Jake
I am truly glad you can be optimistic and not cynical about economic experts efforts to extricate this country from the economic mess we're in. They say for every economist theres a different opinion - and whilst it may not be quite that bad theres a lot of disagreement among them over what to do. Even the governer of the Bank of England and our government disagree !
I find all this "expert " disagreement the most frightening thing. All these professional experts - economists, politicians and bankers etc. - yet we're in the biggest economic mess since the great depression or maybe ever.
Economics is an imprecise science which deals with human economic / financial behaviours which are not always that predictable. Arent a load of economic experts blaming the ultimate expert - the economic guru, Alan Greenspan - for his failure to forsee and therefore prevent the very deep USA/global economic crisis arising and developing. Indeed I think I've heard he now blames himself.
Gordon "prudence" Brown, the ultimate iron chancellor, claimed repeatedly that he had ended boom and bust - enough said.
From all I've heard and seen its far more logical to be cynical and pessimistic than optimistic - that includes anything that's being done to control inflation/deflation including Quantative Easing. Inspite of the theory of how QE will work to save us - based on the "expert" proficiency over the last years - unlike youself, I wouldnt bet on it. I sense from what I see and hear inflation is still with us and likely to rise to well above 2% target - although I feel hyperinflation is extremely unlikely - touch wood !
I do very much hope Im wrong and everything shapes up as smoothly as you appear to suggest - but i am absolutely sure there is no certainty about when and if we will get back to economic "normality"
I am truly glad you can be optimistic and not cynical about economic experts efforts to extricate this country from the economic mess we're in. They say for every economist theres a different opinion - and whilst it may not be quite that bad theres a lot of disagreement among them over what to do. Even the governer of the Bank of England and our government disagree !
I find all this "expert " disagreement the most frightening thing. All these professional experts - economists, politicians and bankers etc. - yet we're in the biggest economic mess since the great depression or maybe ever.
Economics is an imprecise science which deals with human economic / financial behaviours which are not always that predictable. Arent a load of economic experts blaming the ultimate expert - the economic guru, Alan Greenspan - for his failure to forsee and therefore prevent the very deep USA/global economic crisis arising and developing. Indeed I think I've heard he now blames himself.
Gordon "prudence" Brown, the ultimate iron chancellor, claimed repeatedly that he had ended boom and bust - enough said.
From all I've heard and seen its far more logical to be cynical and pessimistic than optimistic - that includes anything that's being done to control inflation/deflation including Quantative Easing. Inspite of the theory of how QE will work to save us - based on the "expert" proficiency over the last years - unlike youself, I wouldnt bet on it. I sense from what I see and hear inflation is still with us and likely to rise to well above 2% target - although I feel hyperinflation is extremely unlikely - touch wood !
I do very much hope Im wrong and everything shapes up as smoothly as you appear to suggest - but i am absolutely sure there is no certainty about when and if we will get back to economic "normality"
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