Am I missing something?

[Drew Smith]

We may be facing interest rises in the near future. The government say that this is because inflation is too high after a sudden jump in december.

Okay - now the inflation is due to higher prices of fuel and food. These are essentials and people have to eat and travel to work/deliver goods etc. It's not like we are all going out and buying 42'' plasma TVs (you're not are you?)!

So, how will putting up interest rates help? Surely the effect on anybody with a mortgage is that they'll have less money to spend each month? But we'll still have to buy petrol and food.

Less money overall but still having to spend the same amounts on the very things pushing up inflation means that people will spend less on other 'luxury' items. So if you are selling plasma TV, new cars, digital cameras, houses etc, this is also bad news. The economy begins to stall and we are back in a recession?

Am I missing something?

[silversnapper1]

My thought entirely Drew.

We just seem to be too busy bailing other countries out at the expense of the taxpayers here.

[ABERS]

Originally Posted by Drew Smith

So if you are selling plasma TV, new cars, digital cameras, houses etc, this is also bad news. Am I missing something?

Yes, iPods and magazines.

According to the reknowned economist Maynard Keynes and his brother Milton, no action should be taken to adjust the economy if it impinges on the lifestyle of the rich and famous or overpaid bankers (have I spelled that right?). So expect the looming rise in interest rates to affect only those hanging on by their fingertips to make ends meet and provide their families with adequate food and shelter.

I can't move in my house for 42" TV's that the wife keeps buying on line. I 've regretted buying her that laptop for Xmas already!

[Sue Allen]

The rules of economics are certainly hard for us mere mortals. But I suppose if we maxed out our credit cards with no hope of repaying them in the past few years we did at least have something in common with the last government.
I keep getting signs on my goodness knows how old TV saying it will no longer receive an analogue signal after March...I could do with one of those spare 42" models

[pburness]

This is really interesting actually -

The bankers where rampant in lending each other money that never really existed and eventually it had to fail, but they all got some nice cash along the way.
The bankers are 75% of the donators to the conservative party
The labour government bailed the bankers out using our (general taxpayers) money
The taxpayers didn't like this so they ousted the labour government and put the conservatives in
The conservatives are now taxing us more to pay off the debt we are in and blaming labour for it (even though we all know the root cause was the bankers)
The increase in tax will increase inflation, which in turn will be countered by increasing interest rates
And guess who benefits from increased interest rates - The Bankers!!
And, to top it all off - Poor old Gordon Brown and labour gets the blame! Mr Cameron must be laughing all the way to the bank (to coin a phrase)
Phil

[Sue Allen]

...and Labour had, how many was it...13 years to do something about it....face it...all politicians are the same...at least those who get a whiff of power

[Balenciaga]

" I Smell revolution"..

" I do hope I'm suitably dressed"

We have to face facts that we as a nation are basically bankcrupt both financially and morally and only vaguely surviving by jiggling monies around, borriwing from Peter to pay Paul..Its a mess..I loathe blame culture even more than I loathe politicians and there isnt a mountain high enough from which I can show my contempt of that group of people..

Selfishly I confess, I am just doing what I can to keep going and its not all glamour I assure you..I have pulled up the drawbridge and watched as people I know and work with go bust and lose the lot..

There's no point in moving to another european country either, they are all in the same mess..I honestly can't see the light at the end of the tunnel and as for" green shoots of recovery" well they appear to have shrivelled and died. I dont envy anyone trying to rasie a family (even in the good times) but now it must be horrendous..

Though I opened this post with a quote from Frankie Howard, it isnt so far from the truth and I fear only a matter of timne before the situation gets out of control. Sometimes revoilution is needed and the powers that be removed from their Ivory towers..

When its gloomy the best thing (though not the most practical thing) to do in my considered opinion is to treat yourself to something you hanker after, it doesnt have to be a big thing but just something to make you feel better. Its a brief spell of relief but its better than nothing..A girlfriend of mine, a very successful actress wont watch the news or read the papers..its so gloomy and as she says there is nothing she can do so why get bogged down..I dont entirely share her point of view but she's always cheerful so maybe ignorance really is bliss..

Bal

[donoreo]

The Bank of Canada just this week held interest rates once again at 1%. Things are going along here as normal.

[karenoliver]

Originally Posted by Sue Allen

...and Labour had, how many was it...13 years to do something about it....face it...all politicians are the same...at least those who get a whiff of power

And it will take the Tories less than 3 to cause utter devastation :-)

Starting with :
Education and the NHS :-(


Karen

[ABERS]

I think the most disturbing statistic to come out today is that 20% of the 16-23 year olds in our country are without jobs.

We all complain bitterly about the so called yob culture that exists and figures like these will only exacerbate it with a few 100 thousands of young people with no hope of a decent future, and even those that stay on at school after 16 are to be denied what little help they get at the moment.

Another question that puzzles me, where are the GP's going to find the time to manage a 90 billion pound NHS budget on top of their first job of looking after patients. Or will they employ all the current NHS managers faced with redundancy in the proposed shakeup. Perhaps they will reduce the alloted time to see a patient from 10 minures to 5 to fit it all in.