Consumer morale near 2-year low in November

Really2

Just a thought did our cost of borrowing not fall when the cuts were announced?
Is it higher now than late 2009?

Sir_Humphrey

Really2 wrote: »

Sorry, why am I a frother? because I think most countries have been forced to cut because of their debt. (at the mercy of ratings agencies)

Your problem is you are more than aware you could be out of a Job soon. A job you cant justify, remember your fireworks post.

Now anyone could easily point out you could use an Archimedes screw to get water up hill. (so up hill irrigation has been around for hundreds of years)
What a poorly worked out put down.
But thanks for the likeness to Pol Pot more than relevant?

Sorry, not aimed at you.

Pol Pot infamously redesigned Cambodia's irrigation system without studying the topography of the countryside. He carried on regardless.

My area of work will still exist after the cuts BTW.

Really2

tomterm8 wrote: »

Before the spending cuts, Ireland was in a better situation to us.

I think the actual point of that is before the cuts europe was in a better situation than us.
Part of Ireland's problem is because of the euro.
Europe was not a focus then, we were.

I would not say Irelands situation was better, it just looked like that from the outside it just unwound later.

Really2

Sir_Humphrey wrote: »

Sorry, not aimed at you.

Pol Pot infamously redesigned Cambodia's irrigation system without studying the topography of the countryside. He carried on regardless.

My area of work will still exist after the cuts BTW.

Ok sorry for the rant (bit of a low blow on the job sorry):o, but their is no one else on here arguing that cut's were necessary.:)
I did not know that about Pol Pot, on the basis of what he did that would be one of the better things.

tomterm8

Really2 wrote: »

Just a thought did our cost of borrowing not fall when the cuts were announced?
Is it higher now than late 2009?

Guilt yields have just come to a six months high and are slightly above where they were when the cuts were announced in the emergency budget. Very few cuts have actually been made yet. Mostly, so far the conservatives have been keeping to Labour spending plans, because the budget happened when it was too late to really change most of them for the last fiscal year.

To a large extent, we are still in the quiet before the storm phase, I thought the Torys would go much quicker than this, but announcements of spending cuts are pretty irrelevant.

The actually spending cuts will start after christmas, and will accelerate over the next three years.

Really2 wrote: »

that cut's were necessary.:)
.

Fiscal consolidation is necessary, no doubt about it, but if done in the wrong way or too fast, it can really booger up an economy.

There are other things that are necessary: we need to increase savings, and increase exports, because increasing exports is the only way you can square the circle.

Put simply, if you cut government spending without increasing exports, we will have another recession.

Really2

tomterm8 wrote: »

Guilt yields have just come to a six months high and are slightly above where they were when the cuts were announced in the emergency budget.

Where they come down to an 8 month low.;)
So would that not be an indication that our borrowing rate would be higher had we not looked to cut.

Sir_Humphrey

Really2 wrote: »

I did not know that about Pol Pot, on the basis of what he did that would be one of the better things.

Not really, IIRC it led to a famine.

tomterm8

Really2 wrote: »

Where they come down to an 8 month low.;)
So would that not be an indication that our borrowing rate would be higher had we not looked to cut.

No, not at all, as I said we have made no significant cuts since the Torys came in compared to what the Labour party would have done.

They have announced a lot of cuts, but basically done nothing except cut 6 billion of shadow spending the Labour government set up so it could announce cuts after the election.

Next year is when the cuts will actually happen.

Really2

tomterm8 wrote: »

No, not at all, as I said we have made no significant cuts since the Torys came in compared to what the Labour party would have done.

They have announced a lot of cuts, but basically done nothing except cut 6 billion of shadow spending the Labour government set up so it could announce cuts after the election.

Next year is when the cuts will actually happen.

Sorry don't get you, if outlining the cuts lowered our rate of borrowing to an 8 month low how could it not be higher if we had done nothing?
We have just had 6 months borrowing below our previous costs?

tomterm8

Really2 wrote: »

Sorry don't get you, if outlining the cuts lowered our rate of borrowing to an 8 month low how could it not be higher if we had done nothing?
We have just had 6 months borrowing below our previous costs?

A little bit cheaper, certainly, but surely if the market wanted immediate cuts, the market would be telling us that? And, now that the real cuts are actually starting to take place (very marginally), the cost of funding seems to be going up.