Wildcat Posted June 22, 2011 Share Posted June 22, 2011 Indeed. The idea that you can spend your way out of trouble is about as discredited notion as you can imagine yet some people cling to the mantra as a totem of their self serving ideology. Wildcat, I suggest that you go and look at Vague_Boy's Greek contagion to spread to the UK thread. And when I do look at that thread all I can see is vague boy making a predicton that was false, a lot of fearmongering and some stupidity and personal attacks against me to avoid dealing with the issues. Link to comment Share on other sites More sharing options...
Wildcat Posted June 22, 2011 Share Posted June 22, 2011 And he's not concerned about the increasing inflation that relaxed wage constraints would create... Inflation is a problem, unless you're a debtor, and even the current rate is harming millions of people on fixed incomes or who save. inflation remains at a low, it is the way the west dealt with much larger debts after the second world war it is tried and tested method Link to comment Share on other sites More sharing options...
Cyclone Posted June 22, 2011 Share Posted June 22, 2011 Inflation is at 4.5%, the target is 2%. It's not low at all and you're suggesting that deliberately inducing it to be higher would be a good thing... Link to comment Share on other sites More sharing options...
Wildcat Posted June 22, 2011 Share Posted June 22, 2011 Inflation is at 4.5%, the target is 2%. It's not low at all and you're suggesting that deliberately inducing it to be higher would be a good thing... Not a matter of inducing it, simply letting it do its thing and reducing the debt, I would start worrying about it being out of hand if it was over 10% and there were good reasons for wanting it lower. I remember it being over 20% and the sky didn't fall in on anyone's heads. The desire to obsessively control inflation over considerations of promoting growth and dealing with unemployment is a product of failed monetarist thinking. The evidence is that the best way to control inflation is through growth and dealing with unemployment.... something that involves investment in the right policies and in learning from history. Monetarist 'hawks' have the cart before the horse. http://www.nytimes.com/2011/02/27/business/27view.html?_r=2 Link to comment Share on other sites More sharing options...
E-clips Posted June 22, 2011 Author Share Posted June 22, 2011 This government does not want growth. Every move it takes is causing the economy to shrink. It does not care that people are losing their livelyhoods, pensions, possessions, houses and families etc, etc, etc. It has chosen to deal with the situation in the usual manner. Get people out of work, get them afraid of losing their houses and worldly possessions then get them competing for jobs and reduce pay and conditions drastically. Force people to work for peanuts, then the whole rotten cycle begins again. The rich get richer and the poor get poorer. Different tory government , same tory <removed> .... Nothing changes. Link to comment Share on other sites More sharing options...
Cyclone Posted June 22, 2011 Share Posted June 22, 2011 Not a matter of inducing it, simply letting it do its thing and reducing the debt, I would start worrying about it being out of hand if it was over 10% and there were good reasons for wanting it lower. I remember it being over 20% and the sky didn't fall in on anyone's heads. The desire to obsessively control inflation over considerations of promoting growth and dealing with unemployment is a product of failed monetarist thinking. The evidence is that the best way to control inflation is through growth and dealing with unemployment.... something that involves investment in the right policies and in learning from history. Monetarist 'hawks' have the cart before the horse. http://www.nytimes.com/2011/02/27/business/27view.html?_r=2 You presumably speak as someone with no savings and not on a fixed income (not linked to inflation), and without any empathy for those who do rely on income from savings or other fixed income. Link to comment Share on other sites More sharing options...
Tony Posted June 22, 2011 Share Posted June 22, 2011 I would start worrying about it being out of hand if it [interest rates] was over 10% On what grounds? Can we see your backup for your very precise numbers? Link to comment Share on other sites More sharing options...
Mecky Posted June 22, 2011 Share Posted June 22, 2011 Whatever the interest rate is, it's not apparent to the price of food in the shops. You might want to include the price of petrol in that ... and the price of everything else. Link to comment Share on other sites More sharing options...
E-clips Posted June 22, 2011 Author Share Posted June 22, 2011 Whatever the interest rate is, it's not apparent to the price of food in the shops. You might want to include the price of petrol in that ... and the price of everything else. Fuel prices increase the cost of everything else due to transportation costs etc. The poorest are being hit the hardest as a result. Link to comment Share on other sites More sharing options...
Wildcat Posted June 22, 2011 Share Posted June 22, 2011 On what grounds? Can we see your backup for your very precise numbers? The figure I gave was based on history on inflation being higher, as I explained in my post... I was giving a rounded rough figure along with a qualifier. I believe Paul Krugman when talking aboutt he US economy went as high as inflation of 25%. Link to comment Share on other sites More sharing options...
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