|
|
Post by oracle75 on Jan 5, 2023 11:44:58 GMT
I think you will find that interest rates and inflation are linked . Tbh I don’t think that you are any more clued up about fiscal matters than I am 😁 Yes you are correct, hence the reason when inflation jumps the BoE step in and raise mortgage interest rates.
However I've never really got the concept of how putting hundreds of pounds on peoples mortgages helps with reducing inflation.
Big factors on surging inflation is obviously energy rises, which common sense would tell those in charge that unless they tackle the cost of energy there is little hope of bringing down inflation.
In a system of supply and demand, if Joe Smith has to pay more for a mortgage, he doesn't have the spend for extras he did so he consumes less. To encourage him to spend more so the shopkeeper can pay HIS increased mortgage, the shopkeeper has to lower his prices and hope to sell more or reduce his overheads...like employees. Eventually this starts to erode the whole balance in the economy especially in times of important inflation, and if the balance isn't held you get stagflation...inflation in a stagnant shrinking economy...a downward spiral. |
|
|
|
Post by Fairsociety on Jan 5, 2023 11:51:39 GMT
Yes you are correct, hence the reason when inflation jumps the BoE step in and raise mortgage interest rates.
However I've never really got the concept of how putting hundreds of pounds on peoples mortgages helps with reducing inflation.
Big factors on surging inflation is obviously energy rises, which common sense would tell those in charge that unless they tackle the cost of energy there is little hope of bringing down inflation.
Indeed and it’s not the Bank of England who is responsible for influencing the external factors that will reduce inflation , it’s the government. So to say ..”Two of them are not in his gift to give...inflation and consequently growth. They are the responsibility of the Bank of England and Putin in Ukraine.” is bollocks really . Well they are hoping that Mr & Mrs Jones will never ask why putting a £100 a month on their mortgage payments is going to bring down inflation and solve the problem.
They are hoping Mr & Mrs Jones will believe what they are told, it is Putin and the war in Ukraine that has put their mortgage up by £100 a month, it does beggar belief that Truss almost broke the economy just by saying she was cutting taxes, if word of mouth can have that sort of impact on our inflation and economy why doesn't Sunak just say he's raising taxes and see if it has the same effect but in reverse.
|
|
|
|
Post by Pacifico on Jan 5, 2023 11:53:54 GMT
Is it the left or the right who are holding the country to ransom with strikes?
Is it the left or the right who comes up and uses all this woke bullshit?
Is it the left or the right that practices all pushes for all this diversity bollocks?
Is it MP's from the left or the right who are supporting the twats on strike at the picket lines?
Is that commie bastard Mick Lynch from the left or right side of politics?
Is it the majority of those from the left or the right who are still smarting over brexit?
Is it the left or the right who would have us back into the fucking EU if they had their wqy?
You only have to look on this forum and see the bullshit like the majority want another referendum or who wuld vote remain.
So you don't agree with Mick Lynch that: Workers should be paid a decent wage? Safety checks on the railways should not be reduced by 50%? People should not be forced to work unsocial hours? Says more about you than Lynch if you do not. What is the point of a Public Transport system that doesnt operate during unsocial hours? |
|
|
|
Post by oracle75 on Jan 5, 2023 11:55:54 GMT
Yes you are correct, hence the reason when inflation jumps the BoE step in and raise mortgage interest rates.
However I've never really got the concept of how putting hundreds of pounds on peoples mortgages helps with reducing inflation.
Big factors on surging inflation is obviously energy rises, which common sense would tell those in charge that unless they tackle the cost of energy there is little hope of bringing down inflation.
Indeed and it’s not the Bank of England who is responsible for influencing the external factors that will reduce inflation , it’s the government. So to say ..”Two of them are not in his gift to give...inflation and consequently growth. They are the responsibility of the Bank of England and Putin in Ukraine.” is bollocks really . Interest rates are just one of a few very powerful tools which direct , for most of us, how much we consume after paying what we have to. Tax thresholds is another one. The government has certain levers it can pull but interest rates are both a response to the money supply and a regulator of it. The economy of any country depends on how much money the population has to spend. Government can affect part of it but the BoE controls how much that is for the average person and for decisions on where to invest. Investment is supported by banks and interest rates. Too high and business will invest somewhere else. That means more unemployment or lower wages and less demand. |
|
|
|
Post by Bentley on Jan 5, 2023 11:57:56 GMT
Indeed and it’s not the Bank of England who is responsible for influencing the external factors that will reduce inflation , it’s the government. So to say ..”Two of them are not in his gift to give...inflation and consequently growth. They are the responsibility of the Bank of England and Putin in Ukraine.” is bollocks really . Interest rates are just one of a few very powerful tools which direct , for most of us, how much we consume after paying what we have to. Tax thresholds is another one. The government has certain levers it can pull but interest rates are both a response to the money supply and a regulator of it. The economy of any country depends on how much money the population has to spend. Government can affect part of it but the BoE controls how much that is for the average person and for decisions on where to invest. Investment is supported by banks and interest rates. Too high and business will invest somewhere else. That means more unemployment or lower wages and less demand. As I said Tbh I don’t think that you are any more clued up about fiscal matters than I am 😁 |
|
|
|
Post by Fairsociety on Jan 5, 2023 12:05:58 GMT
Indeed and it’s not the Bank of England who is responsible for influencing the external factors that will reduce inflation , it’s the government. So to say ..”Two of them are not in his gift to give...inflation and consequently growth. They are the responsibility of the Bank of England and Putin in Ukraine.” is bollocks really . Interest rates are just one of a few very powerful tools which direct , for most of us, how much we consume after paying what we have to. Tax thresholds is another one. The government has certain levers it can pull but interest rates are both a response to the money supply and a regulator of it. The economy of any country depends on how much money the population has to spend. Government can affect part of it but the BoE controls how much that is for the average person and for decisions on where to invest. Investment is supported by banks and interest rates. Too high and business will invest somewhere else. That means more unemployment or lower wages and less demand. But putting up Mr & Mrs Jones mortgage by £100 each month will give them less disposable income.
In other words they wont be contributing towards the economy, say eating out helping the hospitality industry.
Buying clothes that help the retail industry.
Buying electrical goods and so on and so on, so by taking a extra £1200 a year of Mr & Mrs Jones in mortgage rises, its taking away £1200 they might otherwise spend, and there are millions of Mr & Mrs Jones who are stuck in that situation, so no idea how the BoE think it's helping by raising interest rates nearly every month, they are in fact helping destroy any chance of a boom in the economy and bringing down inflation.
|
|
|
|
Post by andrewbrown on Jan 5, 2023 12:21:00 GMT
Correct. Plus it reduces vat take for the government.
|
|
|
|
Post by jonksy on Jan 5, 2023 14:03:19 GMT
You're right, I didn't watch it. I was at work. If I've missed something, please feel free to contribute to the debate. What debate? All you do is spout BS and then ignore a question and start another of your misguided little rants. |
|
|
|
Post by om15 on Jan 5, 2023 14:17:38 GMT
Starmer appears to think that increasing devolution and "taking powers from Westminster" would be a good idea. This insanity was started by Bliar and has resulted in Wales becoming a barren wasteland with its ambitions running to a 4 day week for those few that choose to work and everyone else gets paid anyway, Scotland has set its sights on becoming another Venezuela, run by a mad women it is intent on imploding. Starmer also pledges to overturn all legislation curbing strikes.
So there we have it, more Drakeford, more Sturgeon and more strikes. I am not a Sunak fan, but as Red says, there just is no alternative. A lot can happen in two years, nothing much would surprise me, except perhaps Labour coming up with anything that makes sense that is.
|
|
|
|
Post by Red Rackham on Jan 5, 2023 14:41:27 GMT
Sunak's speech was a bit strange. He appears to have forgotten that all the things he promised to put right, he put in place, or jointly put in place. He was Chancellor for three years, and before that Chief Secretary to the Treasury, so he has been at the very heart of government policy making for the past three or four years. He now says we should trust him. Personally, I don't. On the other hand...
Starmer's speech was as expected, predictable and boring. It was an hour I'll never get back that's for sure. But my ears did prick up when he said a future Labour government must be greener and the climate emergency must be at the heart of government. Which of course means future energy bills will soar and energy security will become a thing of the past as the Labour government embrace net-zero to show the world how virtuous they are.
Labours banner should read: Vote Labour, vote for energy poverty.
|
|
|
|
Post by piglet on Jan 5, 2023 14:48:20 GMT
I see no problem with a temporary period of a dictatorship. We need to leave every current rule, and put it up for negotiation, if you havent noticed democracy doesnt always work. Certainly not for Britain. To bat for Britain means a clean slate on everything. We are free, we can do what we want. When Blair came to power someone said to him, this is from Blair, that he had power, use it.
Did he? You bet, he changed the face of Britain from a smile to a face crying.
We have no overlord, we are free, do you get it?
The proof is in the pudding, since Sunak has been in charge nowt has changed, nothing. Is it going too?, NO. Who is going too?, no one. Brexit is a sham, we need a far sighted revolutionary, putting a fire to all that has gone before.
We are still a shire of Europe, we need an anti cancer drug. The analogy is correct.
|
|
Deleted
Deleted Member
Posts: 0
|
Post by Deleted on Jan 5, 2023 15:22:14 GMT
So you don't agree with Mick Lynch that: Workers should be paid a decent wage? Safety checks on the railways should not be reduced by 50%? People should not be forced to work unsocial hours? Says more about you than Lynch if you do not. A ‘decent wage ‘is subjective . Im not sure how many times there should be safety checks and in what context he has claimed this. I doubt that you know either. Somebody has got to work the ‘ unsocial ‘ hours . Wages have been falling for over a decade, that is not subjective. A wage that takes into account inflation would be a start. The rail companies want to reduce safety checks by 50%, check it out. So we 'force' people to work unsocial hours? Nobody should be forced to work shifts they have not agreed to. |
|
Deleted
Deleted Member
Posts: 0
|
Post by Deleted on Jan 5, 2023 15:25:53 GMT
So you don't agree with Mick Lynch that: Workers should be paid a decent wage? Safety checks on the railways should not be reduced by 50%? People should not be forced to work unsocial hours? Says more about you than Lynch if you do not. What is the point of a Public Transport system that doesnt operate during unsocial hours? Why would it not operate during unsocial hours? Oh, its another troll question. 😔 |
|
|
|
Post by jonksy on Jan 5, 2023 15:28:06 GMT
Is it the left or the right who are holding the country to ransom with strikes?
Is it the left or the right who comes up and uses all this woke bullshit?
Is it the left or the right that practices all pushes for all this diversity bollocks?
Is it MP's from the left or the right who are supporting the twats on strike at the picket lines?
Is that commie bastard Mick Lynch from the left or right side of politics?
Is it the majority of those from the left or the right who are still smarting over brexit?
Is it the left or the right who would have us back into the fucking EU if they had their wqy?
You only have to look on this forum and see the bullshit like the majority want another referendum or who wuld vote remain.
Workers should be paid a decent wage?Safety checks on the railways should not be reduced by 50%? People should not be forced to work unsocial hours? Says more about you than Lynch if you do not. They are paid a decent wage. And as for mick lynch there isn't a bigger C@NT that wore 2 shoes the commie bastard. I hope that helps. |
|
|
|
Post by jonksy on Jan 5, 2023 15:29:57 GMT
You're right, I didn't watch it. I was at work. If I've missed something, please feel free to contribute to the debate. FFS the origiinator of this thread Morgan stated what had been said. Am I allowed to mention rocket science? |
|
