IMF says Britain must relax austerity if eurozone crisis escalates

N1AK

RenovationMan wrote: »

What people who parrot this incessantly seem to ignore is that if you borrow £50,000 and re-mortgage you can invest wisely for a couple of years and end up with a profit on the borrowing.

And if you strap a rocket to the back of a pig you might just see one fly!

The austerity measures in Greece (and elsewhere) haven't been about cutting 'wise' investment. It has been about cutting spending on services consumed and welfare provided. It's that kind of spending that Labour in the UK want to avoid cutting and it does very little, if anything, to promote long term growth.

grizzly1911

oldvicar wrote: »

For local accountability.

But more to the point why do they cost so much. Have you seen your council tax bill and how much goes to the police? That's just the half of it - literally, due to central grants.

To paraphrase the slogan from the recent police federation conference :

20% cuts to police budgets? It would be criminal not to !

Banks consolidated regions that controlled branches. They also removed routine paperwork from those branches and regions into bunkers. We still have bank branches for basic requirements and advisors available from the ether if required and specialised service centres. Purchasing strategy and premises maintenance, HR were mandated centrally .

Didn't happen over night but it was a phased transition, suck it ans see what works what doesn't. Certainly reduced the Chiefs.

Don't see why that couldn't be applied to the police perhaps bringing them down to 15 regions as a start.

Same could go for local councils too.

grizzly1911

N1AK wrote: »

The austerity measures in Greece (and elsewhere) haven't been about cutting 'wise' investment. It has been about cutting spending on services consumed and welfare provided. .

It is also the one that is difficult to avoid and forms one of the largest elements of Government spending. There will always be a pool that will need to be catered for.

The-Joker

The only reason the UK and USA are not bust is because of all the currency added to the supply out of thin air. It will continue until you need a wheelbarrow full of currency to buy a loaf of bread.

The-Joker

grizzly1911 wrote: »

IMO a rate cut form 0.5% is pointless, it is zero to all intents and purposes and apart from big business irrelevant.

Banks will still price according to the market and risk reward. Fixed savings rates at 4% for 2years + aren't exactly low only instant access passbook accounts are pants.

If it ain't happening at current levels shaving an extra 0.25%, or such, off isn't going to be the answer.

Yeah if they do cut base rate to 0.25% or something it just looks desperate and tells everyone this crisis is more serious than the news is letting on.

It would also make the difference between the base rate and what the banks are charging for loans mortgages even wider.

When the base rate does go back up to normal, rates the banks charge are going to go up a hell of a lot.

Thrugelmir

The-Joker wrote: »

It would also make the difference between the base rate and what the banks are charging for loans mortgages even wider.

Explain how?