Double-dip!

[Challenger1978]

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%.

Not a chance in hell of that happening

Exhaust fumes from diesel engines do cause cancer, a panel of experts working for the World Health Organization says.

It concluded that the exhausts were definitely a cause of lung cancer and may also cause tumours in the bladder.

It based the findings on research in high-risk workers such as miners, railway workers and truck drivers.

However, the panel said everyone should try to reduce their exposure to diesel exhaust fumes.

The International Agency for Research on Cancer, a part of the World Health Organization, had previously labelled diesel exhausts as probably carcinogenic to humans.

<a class="postlink" href="http://www.bbc.co.uk/news/health-18415532" onclick="window.open(this.href);return false;">http://www.bbc.co.uk/news/health-18415532</a>

 

[jay_mcfc]

You people in England are very lucky with the 'crisis'. In fact the last time I was back there was no sign of one at all. Manchester was jam packed during the day and night and I don't know of anyone who has lost their job or house. Here in Spain is a real crisis. People are being kicked out of their homes and almost every other house or flat is up for rent or sale. Valencia was a ghost town on Saturday afternoon in the middle of July when it should be at its most busiest time. Unemployment for those between 18-24 is at 50%! The Government has cut everything leading to teachers, hospital staff, police, firemen and civil servants going on strike and business after business are closing down.

My friend left Spain to go to Denmark to get a job two weeks ago. He was three weeks away from being homeless because the bank was going to repossess his house. He can speak three language and is a qualified driving instructor but has been unable to get a job for 2 years. This is just one of many, many stories.

 

[brand blue heavies]

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%.

Not a chance in hell of that happening

Exhaust fumes from diesel engines do cause cancer, a panel of experts working for the World Health Organization says.

It concluded that the exhausts were definitely a cause of lung cancer and may also cause tumours in the bladder.

It based the findings on research in high-risk workers such as miners, railway workers and truck drivers.

However, the panel said everyone should try to reduce their exposure to diesel exhaust fumes.

The International Agency for Research on Cancer, a part of the World Health Organization, had previously labelled diesel exhausts as probably carcinogenic to humans.

<a class="postlink" href="http://www.bbc.co.uk/news/health-18415532" onclick="window.open(this.href);return false;">http://www.bbc.co.uk/news/health-18415532</a>

Ha i know but as 90% of our business transport run on diesel it would represent a much needed saving to SME`s struggling with the fuel costs. Also most cars in the next 10 years will have small,efficent petrol engines (new ford focus has a 1 litre engine) which will mean less petrol used. A report out today says that oil reserves are at there highest levels for years due to lack of demand and this will hopefully lead to a cut in fuel. Smoking is invariably the worst cancer killer but try telling that to those still willing to pay £7.50 a pack!!If they pay that then they would pay £10 a pack. Like wise drinkers. Beer and ciders sold in supermarkets and shops should be price per unit and sold accordingly. Pubs and licensed places should be left alone if sold by the pump. Again the incentive would be to reduce scallies buying cheap beers and cider and encourage people to get out to there local and increase business.

 

[city diehard]

driven by an ideological case for smaller stae.

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

The 'Welfare State' which has served to provide a minimum standard of living for the poor, unemployed, disabled etc. which prides itself on equal opportunity, equitable redistribution of income and post WWII to the thatcher saw the greatest economic advances this country has ever made. The larger state role is a by product of increasing social mobility and social cohesion. The downside which I take you loathe is the unneeded bureaucracy and red tape, however this is a sacrifice I'm willing to pay and previous governments were willing to pay to secure not only an increase in economic welfare for its citizens but a fair and even increase in economic welfare for all its citizens.

 

[brand blue heavies]

driven by an ideological case for smaller stae.

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

The 'Welfare State' which has served to provide a minimum standard of living for the poor, unemployed, disabled etc. which prides itself on equal opportunity, equitable redistribution of income and post WWII to the thatcher saw the greatest economic advances this country has ever made. The larger state role is a by product of increasing social mobility and social cohesion. The downside which I take you loathe is the unneeded bureaucracy and red tape, however this is a sacrifice I'm willing to pay and previous governments were willing to pay to secure not only an increase in economic welfare for its citizens but a fair and even increase in economic welfare for all its citizens.

I take your point but even you must realise the public sector out grew the pace of the economy and jobs like 'out reach workers on 37k and other ridiculour positions were just a result of over bloated councils. Even today the new leader of Salford council has 10 deputies all on 30k+! We as a nation pride on our public services and fact that those willing and able to pay do pay for the not so well off and those in positions of hardship....but to put it bluntly the public sector has been taking the pi$$ for the last 15 yrs and now it needs to wake up and smell the coffee.

 

[Rammy Blue]

You people in England are very lucky with the 'crisis'. In fact the last time I was back there was no sign of one at all. Manchester was jam packed during the day and night and I don't know of anyone who has lost their job or house. Here in Spain is a real crisis. People are being kicked out of their homes and almost every other house or flat is up for rent or sale. Valencia was a ghost town on Saturday afternoon in the middle of July when it should be at its most busiest time. Unemployment for those between 18-24 is at 50%! The Government has cut everything leading to teachers, hospital staff, police, firemen and civil servants going on strike and business after business are closing down.

My friend left Spain to go to Denmark to get a job two weeks ago. He was three weeks away from being homeless because the bank was going to repossess his house. He can speak three language and is a qualified driving instructor but has been unable to get a job for 2 years. This is just one of many, many stories.

I know fella, got a couple of pals over in Spain who were telling me some horror stories the other week along similar lines to yours.

It will happen over here in the UK eventually though, probably a couple of years away for now.

 

[Challenger1978]

Ha i know but as 90% of our business transport run on diesel it would represent a much needed saving to SME`s struggling with the fuel costs. Also most cars in the next 10 years will have small,efficent petrol engines (new ford focus has a 1 litre engine) which will mean less petrol used. A report out today says that oil reserves are at there highest levels for years due to lack of demand and this will hopefully lead to a cut in fuel. Smoking is invariably the worst cancer killer but try telling that to those still willing to pay £7.50 a pack!!If they pay that then they would pay £10 a pack. Like wise drinkers. Beer and ciders sold in supermarkets and shops should be price per unit and sold accordingly. Pubs and licensed places should be left alone if sold by the pump. Again the incentive would be to reduce scallies buying cheap beers and cider and encourage people to get out to there local and increase business.

Considering business transport is vital to the UK economy I don't get why they don't let hauliers use something like red diesel. As for the rest of your post I just don't agree with putting taxes up any more in fact I believe we should be lowering them across the board as a way to stimulate the economy.

 

[BoyBlue_1985]

You people in England are very lucky with the 'crisis'. In fact the last time I was back there was no sign of one at all. Manchester was jam packed during the day and night and I don't know of anyone who has lost their job or house. Here in Spain is a real crisis. People are being kicked out of their homes and almost every other house or flat is up for rent or sale. Valencia was a ghost town on Saturday afternoon in the middle of July when it should be at its most busiest time. Unemployment for those between 18-24 is at 50%! The Government has cut everything leading to teachers, hospital staff, police, firemen and civil servants going on strike and business after business are closing down.

My friend left Spain to go to Denmark to get a job two weeks ago. He was three weeks away from being homeless because the bank was going to repossess his house. He can speak three language and is a qualified driving instructor but has been unable to get a job for 2 years. This is just one of many, many stories.

I know fella, got a couple of pals over in Spain who were telling me some horror stories the other week along similar lines to yours.

It will happen over here in the UK eventually though, probably a couple of years away for now.

It wont, it just really wont. If you truly believe that why not move somewhere else

 

[GStar]

Well, that's reassured me!

 

[intheknow!]

The main reason for the unexpected 0.7% decline in output in the UK (economists were predicting 0.2% drop), is the absolute collapse in the Construction sector.

The construction sector in the UK is now on it's knees, it has never been so bad. This is a direct result of Osborne's policies. He cannot escape this one. Because of his, self imposed, economically insane policy of trying to wipe out a structural deficit, in 5 years during a worldwide financial crisis and economic slowdown. In 2010, Osborne realised he would not be able to cut in real terms (ie spending and the wholesale sacking of public sector workers) so he decided to take, what he thought, was the easy option: cut the infrastructure and investment part of Government spending. This has been absolutely calamitous. Now the UK can borrow at historically low rates, the Government should be ramping up the infrastructure spending, which will create jobs and bring in tax revenue, allowing them to cut the deficit without putting millions out of work. But Osborne does not want to lose face. The UK economy is being sacrificed on the altar of Osborne's vanity. Business's and financial institutions are sitting on record levels of cash but they will not invest because there is a lack of demand. That is the biggest indictment of Osborne.