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Gordon Brown slip today

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    Gordon Brown slip today

    On the news earlier saw a interview where he was talking of keeping interest rates down and thereby inflation

    Now hang on, raising interest rates controls inflation not lowering them, is he a total economic muppet ?

    OR

    is he admiting that the largest component of family spending is mortgage repayments and therby mortgage funding is a large determinate of inflation
    despite not being counted in inflation figures!
    Last edited by Bagpuss; 15 April 2008, 20:33.
    The court heard Darren Upton had written a letter to Judge Sally Cahill QC saying he wasn’t “a typical inmate of prison”.

    But the judge said: “That simply demonstrates your arrogance continues. You are typical. Inmates of prison are people who are dishonest. You are a thoroughly dishonestly man motivated by your own selfish greed.”

    #2
    Don't worry, he has already told us that he has removed the boom and bust cycle so this won't be a problem.

    In fact, apart from the fact we have had the dot com boom/bust, house price boom and now bust he has clearly demonstrated how effective he has been in this endevour.

    Comment


      #3
      Never really understand economics but when so many price rises are outside UK control, energy and food mainly, I can't see how raising interest rates can reduce inflation. Not really necessary to control wage demands either when the fear of a recession acheves the same effect.
      bloggoth

      If everything isn't black and white, I say, 'Why the hell not?'
      John Wayne (My guru, not to be confused with my beloved prophet Jeremy Clarkson)

      Comment


        #4
        Originally posted by Bagpuss View Post
        On the news earlier saw a interview where he was talking of keeping interest rates down and thereby inflation

        Now hang on, raising interest rates controls inflation not lowering them, is he a total economic muppet ?

        OR

        is he admiting that the largest component of family spending is mortgage repayments and therby mortgage funding is a large determinate of inflation
        despite not being counted in inflation figures!



        It can be argued that high mortgage rates and Gordon's never-ending tax increases reduce disposable income and thus employees may be going to employers for higher wage rises, which will push up inflation. Also, high interest rates put up the cost of borrowing for businesses which again put up production costs and therefore inflation.
        Raising interest rates would therefore be nonsensical in the current economic climate. Lowering taxes would be a pretty normal strategy but of course our 'prudent' Gordon has left no room for manouvre, so we can forget that idea.

        Comment


          #5
          Originally posted by Bagpuss View Post
          On the news earlier saw a interview where he was talking of keeping interest rates down and thereby inflation
          Bank interest rates are set by the "independent" bank of england...so nowt to do with him...(apart from the fact that he made them independent)

          Originally posted by Bagpuss View Post
          Now hang on, raising interest rates controls inflation not lowering them, is he a total economic muppet ?
          Probably he's not a muppet...however he believes you(joe public) are.

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