Double-dip!

[BoyBlue_1985]

We are in a depression; because "things are down" not just going down.

-- Wed Jul 25, 2012 11:45 am --


Any relation to Lord Young? What a stupid comment.

-- Wed Jul 25, 2012 11:46 am --



Banks are still hoarding it when the purpose was to lend it out, due to the severe lack of confidence.

I meant it 100%, certainly in the circles I mix in (and we are far from upper class toffs) just normal hardworking lads who probably have a bit more ambition than most if anything. Look at the facts, if you have a mortgage, are not a public sector worker and have employment I almost guarantee (providing your circumstances have not changed-kids etc) others will be in the same boat. Jump in the waters lovely.

I'm sure the 1 million youth unemployed would have something to say. That figure will have serious economic consequences if we don't act sooner, they will suffer from hysteresis and then a lost generation on our hands, if the govt don't rethink their zealous austerity measures.

They wont so stop banging on about it

 

[brooklandsblue2.0]

I meant it 100%, certainly in the circles I mix in (and we are far from upper class toffs) just normal hardworking lads who probably have a bit more ambition than most if anything. Look at the facts, if you have a mortgage, are not a public sector worker and have employment I almost guarantee (providing your circumstances have not changed-kids etc) others will be in the same boat. Jump in the waters lovely.

I'm sure the 1 million youth unemployed would have something to say. That figure will have serious economic consequences if we don't act sooner, they will suffer from hysteresis and then a lost generation on our hands, if the govt don't rethink their zealous austerity measures.

They wont so stop banging on about it

Why let our bloated 'public servants' exempt from continuing to "f" the country up with their lazy arsed 'flexi time' and index linked pensions. A cull was needed, a cull happened to save the country, I wish it went further, still seeing to many of them rolling into 'work' at 10.30am.

 

[city diehard]

Interest rates will only go up if inflation gets out of hand. Its currently down to its lowest level for years so i wouldn`t expect a rate rise til at least 2015.

I do agree that maybe some of the QE money is being held by the banks but is this a really bad move? Some financial institutions are already preparing for certain currencies to bail out of the euro and if we can limit the exposure as much as possible then a program of steady financial flow from banks to business is the wisest thing to do.

The ECB cant afford to bail out all the countries to the extent that they need so something is gonna give. Personally i`d chuck Greece out with a supporting package to aid the transition back to the Drachma. Then i would take control of the spending from Italy,Spain,Portugal etc limiting the amount of money they are throwing down the drain. This would alas mean a painful round of austerity measures which would affect the public sector massively but its the only way.

Interest rates still wont go up as the inflation we had 6 months ago and the inflation we face in the future is cost-push inflation, and is due to the volatility in commodity prices: especially energy prices. This imported inflation means that interest rates wils have no effect on the average price level and therefore the BofE are powerless to prevent this. Demand pull inflation will not occur for a long time if this downturn persists, which then would see an interest rate rise appropriate.

The QE which is suppose to expand the money supply, is not line the banks to prepare for a rainy day but to spur confidence for them to lend to SME's who will in turn employ etc. and a multiplier will take place.

Your interpretation of the Euro Crisis is spot on, Greece were the only country despite right wing sentiments drawing parallels between our economy and theirs, that were profligate and were reckless in terms of their public finances. The E.U and ECB or more precisely Germans have abstained exercising the implementation of QE as they are inflation hawks. Secondly, they refuse to act as a lender of last resort to spain, italy etc. as this would boost market confidence and hence reduce their borrowing costs. To allow Greece to starts again and enabling them to devalue their own currency is one I agree with and in 30 years a possible return on the cards.

 

[city diehard]

I'm sure the 1 million youth unemployed would have something to say. That figure will have serious economic consequences if we don't act sooner, they will suffer from hysteresis and then a lost generation on our hands, if the govt don't rethink their zealous austerity measures.

They wont so stop banging on about it

Why let our bloated 'public servants' exempt from continuing to "f" the country up with their lazy arsed 'flexi time' and index linked pensions. A cull was needed, a cull happened to save the country, I wish it went further, still seeing to many of them rolling into 'work' at 10.30am.

This fixation on the deficit at times of recovery is delusional, and the rhetoric that the Tories and others have been peddling is obviously working. Our recession is due to deficient demand. If you agree with that then you have to agree it is govt's role to provide an economic stimulus in order to bring aggregate demand back to normal levels. The 'structural' supply side issues you have on leviathan govt should not really be a priority at a time of economic strife but interestingly does reveal that the current economic policies being pursued and you appear to be content with is being shaped and driven by an ideological case for smaller stae.

 

[dave55]

Considering the thread title, i am thoroughly disappointed.

were you thinking what i was thinking?

 

[BoyBlue_1985]

They wont so stop banging on about it

Why let our bloated 'public servants' exempt from continuing to "f" the country up with their lazy arsed 'flexi time' and index linked pensions. A cull was needed, a cull happened to save the country, I wish it went further, still seeing to many of them rolling into 'work' at 10.30am.

This fixation on the deficit at times of recovery is delusional, and the rhetoric that the Tories and others have been peddling is obviously working. Our recession is due to deficient demand. If you agree with that then you have to agree it is he govt role to provide an economic stimulus in order to bring aggregate demand back to normal levels. The 'structural' issues you have on leviathan govt are not a priority and really reveals that the current economic policies are about an ideological case for smaller stae.

Are you a politician?

 

[city diehard]

Why let our bloated 'public servants' exempt from continuing to "f" the country up with their lazy arsed 'flexi time' and index linked pensions. A cull was needed, a cull happened to save the country, I wish it went further, still seeing to many of them rolling into 'work' at 10.30am.

This fixation on the deficit at times of recovery is delusional, and the rhetoric that the Tories and others have been peddling is obviously working. Our recession is due to deficient demand. If you agree with that then you have to agree it is he govt role to provide an economic stimulus in order to bring aggregate demand back to normal levels. The 'structural' issues you have on leviathan govt are not a priority and really reveals that the current economic policies are about an ideological case for smaller stae.

Are you a politician?

No rebuttal to the economics that you so clearly disagree with, back your argument with sound economic thought.

 

[BoyBlue_1985]

This fixation on the deficit at times of recovery is delusional, and the rhetoric that the Tories and others have been peddling is obviously working. Our recession is due to deficient demand. If you agree with that then you have to agree it is he govt role to provide an economic stimulus in order to bring aggregate demand back to normal levels. The 'structural' issues you have on leviathan govt are not a priority and really reveals that the current economic policies are about an ideological case for smaller stae.

Are you a politician?

No rebuttal to the economics that you so clearly disagree with, back your argument with sound economic thought.

Are you mistaking me for someone else

 

[brand blue heavies]

Interest rates will only go up if inflation gets out of hand. Its currently down to its lowest level for years so i wouldn`t expect a rate rise til at least 2015.

I do agree that maybe some of the QE money is being held by the banks but is this a really bad move? Some financial institutions are already preparing for certain currencies to bail out of the euro and if we can limit the exposure as much as possible then a program of steady financial flow from banks to business is the wisest thing to do.

The ECB cant afford to bail out all the countries to the extent that they need so something is gonna give. Personally i`d chuck Greece out with a supporting package to aid the transition back to the Drachma. Then i would take control of the spending from Italy,Spain,Portugal etc limiting the amount of money they are throwing down the drain. This would alas mean a painful round of austerity measures which would affect the public sector massively but its the only way.

Interest rates still wont go up as the inflation we had 6 months ago and the inflation we face in the future is cost-push inflation, and is due to the volatility in commodity prices: especially energy prices. This imported inflation means that interest rates wils have no effect on the average price level and therefore the BofE are powerless to prevent this. Demand pull inflation will not occur for a long time if this downturn persists, which then would see an interest rate rise appropriate.

The QE which is suppose to expand the money supply, is not line the banks to prepare for a rainy day but to spur confidence for them to lend to SME's who will in turn employ etc. and a multiplier will take place.

Your interpretation of the Euro Crisis is spot on, Greece were the only country despite right wing sentiments drawing parallels between our economy and theirs, that were profligate and were reckless in terms of their public finances. The E.U and ECB or more precisely Germans have abstained exercising the implementation of QE as they are inflation hawks. Secondly, they refuse to act as a lender of last resort to spain, italy etc. as this would boost market confidence and hence reduce their borrowing costs. To allow Greece to starts again and enabling them to devalue their own currency is one I agree with and in 30 years a possible return on the cards.

QE has not been filtering down to where its supposed to be used though is it. Some firms are finding funding easy and others not so. I believe that this is because the liquidity of some of the banks is in question and ,although only a guess i wouldn`t put it past some banks to be holding reserves for when the enevitable happens.

Your spot on with the Germans. The Euro was more about building the German economy than anything else. I think they have run out of excuses though and are frantically behind the scenes working out how to deal with the exit strategies of those countries who will bail.

This government has the right idea on austerity but the wrong idea on stimulus. The Bof E is doing its best but a package of grass root measures are needed to boost the economy including a cut in VAT,a raise in the lower earnings tax threshold and quicker investment in our transport infrastructure and housing. Id also hike tax on fags and bring in a two tiered tax on fuel with diesel reduced by 15% and petrol hiked by 5%.

 

[gordondaviesmoustache]

driven by an ideological case for smaller stae.

Whereas the previous government's policies were driven by an ideological case for a larger (and unaffordable) state.