SAGA says......

Really2

Graham_Devon wrote: »

My question to you was a serious one. One which you won't answer.

I believe your theory, based on your above question, was to let inflation control inflation. I.e. let it rise, and disposable income falls, therefore controlling inflation.

Well thats one new economic theory I guess.

It is not a new theory graham, you can't keep paying more for stuff if you don't get more money so prices will fall back to a level where they are supported.

If you had £10 disposable and now don't, what can you spend that £10 you had on if you no longer have it?

Can you now pay more for goods? What happens to items if they don't sell.
You seem to accept the theory on house prices but think it is impossible for it to happen outside house prices.

Supply and demand will take it's toll on inflation eventually.

So that's me explained, why should they go up now that disposable income and standard of living is falling growth is week etc.

I have been polite and answered.

mbga9pgf

chucky wrote: »

people are so emotionally desperately attached to needing rates to go up that they really do believe that BOE interest rates are the only exclusive tool to try and deal with inflation. fiscal policy isn't just about BOE interest rates...

No, you are right. Its also press releases from the BOE that end as headlines in the express and the mail like "Interest rates to hit 1000000% by next year".

Fear of god = less consumption = lower inflation. Its all smoke and mirrors. If the gov. can lower inflation with a press release instead of interest rate rises, that is what he will do.

Look what people do, not what they say they would do.

That tracker I got looks a pretty good bargain from where I am standing!

wotsthat

Graham_Devon wrote: »

Especially for julie, who's usually actually got an argument, rather than picking up on "what are they going to do with more milk", seemingly unable to let a simple example go, because theres something, just a tiny something you may just be able to have a go at!

Check it out, all the debt junkies disagreeing with any rate rise for any reason. Bizzare.

Well you did try and complicate things by converting a simple concept (£ per week) into pints of milk. Why not start a Wurthers Original index instead - that should make things even more obscure.

Where are these debt junkies that disagree with a rate rise for any reason? From what I can see the argument is not that rates should never rise ever again but whether or not a rate rise now is a correct response to the current inflation rate given the state of the economy.

Really2

Graham_Devon wrote: »

Check it out, all the debt junkies disagreeing with any rate rise for any reason. Bizzare.

oh dear, name calling instead of actually thinking they may be arguing about a wider picture than just inflation.

Not one argument to why rates should go up in the current climate and how it will make it all better though? Wonder why.;)

Ps I have stated on many threads if we see wages following inflation we should act.

Graham_Devon

wotsthat wrote: »

Well you did try and complicate things by converting a simple concept (£ per week) into pints of milk.

Complicate!?

PMSL...you serious?! Thats complecated!?

Well that says it all really doesn't it. LOL. That actually made me laugh.

Carry on looking at percentages then. Call that context and analysis, while ignoring what those percentages actually mean to the pensioner.

PSML. "How many more sweets can you get with your extra pound" is year 3 maths for pittys sake, and you are whinging it's too complicated.

Enjoy guys. If that was too complicated for y'all, I'll leave you all to it.

chucky

Graham_Devon wrote: »

PSML.

Enjoy guys. If that was too complicated for y'all, I'll leave you all to it.

yet another e-breakdown... Mr Muddle strikes again.

Graham_Devon wrote: »

Well if thats the only argument you got against what I said, I'm pretty happy with that.

Will get the usuals excited, thinking it's some kind of put down, so better thank it, but really, pretty pointless post, wasn't it. Especially for julie, who's usually actually got an argument, rather than picking up on "what are they going to do with more milk", seemingly unable to let a simple example go, because theres something, just a tiny something you may just be able to have a go at!

Check it out, all the debt junkies disagreeing with any rate rise for any reason. Bizzare.

instead of all your usual twisting and squirming making a fool of yourself why don't you try and explain how cost push inflation is a long term problem and how the UK can exclusively avoid it if it's a global issue...

let's not try and deflect the thread in your usual style because you've been shown to not have understood yet again...

julieq

The argument, Graham, is the same as it's always been. But you continue to try to consider one part of the equation in isolation.

You don't generate wealth by sitting on a pile of money. The money has to be used to generate wealth, which is done essentially by lending it to other people to do something with. People expecting risk free returns on their money above inflation are essentially financial parasites, because they are devolving risk to other people who are actually doing the work. It's particularly dense to expect above interest returns at a time when the "prudent" are also demanding that banks hold more capital and lend less.

This is nothing to do with the idea of "debt junkies", which is a terminally dumb term anyway. The reason for wanting sustained low interest rates is to reduce the cost of money used for investment and to create wealth, so more of it is geared towards generating wealth and less to giving parasites an easy life. It's not to reduce our credit card bills (which it hasn't anyway).

That is good for everyone, including paradoxically the miserly parasites who think that by saving some money risk free they have a right to risk free returns. Because the more investment there is the more returns there will be and the more there will be to share out.

ILW

I do not get this parasite argument. Surely the money sitting on deposit is then lent to others (businesses etc) at a margin, so is being invested in the economy.

wotsthat

Graham_Devon wrote: »

Enjoy guys. If that was too complicated for y'all, I'll leave you all to it.

You're not going are you? You haven't explained yet why interest rates should be going up at the next MPC meeting.

chucky

wotsthat wrote: »

You haven't explained yet why interest rates should be going up at the next MPC meeting.

poor graham. he thinks that raising interest rates will reduce cost push inflation and the VAT induced price rises.

i'd love him to explain how increasing base rates will reduce inflation.