|
Post a reply ||
Back to International Allstars - Message board
The Economy....
Submitted by Rob on 30/Jun/2008
82.69.33.73
Message:
.....is f*cked!
The number one aim of the Bank and Government is to keep inflation low and steady. If inflation is being pushed up by strong economic growth, then increasing interest rates is the right and proper way to keep a check on things.
However, inflation in this case is being driven by high energy prices (which are only going to increase in the next six months). Economic growth is in fact falling. So in this instance, increasing interest rates only has the effect of damaging the economy further and pushes us into recession, with job losses to follow. All this at a time when prices are increasing so we have less take home pay in our pockets! 
Add into the mix the falling property market and the fact that nobody can borrow any money, and the picture becomes bleaker still....
Of course, if Gordon Brown was as "prudent" as he likes to make out, he would of course have set some money aside during the long period of growth we have experienced in order to be able to reduce the tax burden in harder times. 
Anyway, a nice cheery thought for you on a monday morning : :
Replies to this post
|