Inflation to worsen ...

[sasguru]

http://news.bbc.co.uk/1/hi/business/7400074.stm

So there we are. If the BofE is to try to keep a lid on inflation, interest rates will have to RISE in a recession. Clearly a recipe for changing recession into depression
So which will it be: Depression or huge inflation?

[HairyArsedBloke]

Could always cut public spending? That would do the same thing.

[sasguru]

Could always cut public spending? That would do the same thing.

Unfortunately not. Government spending during a recession is a good thing as a fiscal stimulus- as the Americans started doing under Roosevelt in the 30s.
What should happen is the Government should build a pot in good times to use in bad times for infrastructure projects. The private sector should drive things in a boom.
Sadly this bunch of twunts did the opposite.

[HairyArsedBloke]

Government spending during a recession is a good thing as a fiscal stimulus.

Ah, good old Keynesian counter cyclical spending.

He was a big consumer of pot-noodles.

[DodgyAgent]

Time to up the margins

[pisces]

I would love to know what the REAL current rate of inflation is because it sure as hell isn't 2 fecking %.

[oracleslave]

I would love to know what the REAL current rate of inflation is because it sure as hell isn't 2 fliping %.

3%

[HairyArsedBloke]

I would love to know what the REAL current rate of inflation is because it sure as hell isn't 2 fliping %.

The problem is that everyone’s experience of inflation is different as they have a unique basket of goods/services with which to measure it by. As always, the biggest sufferers are the sick, unemployed and pensioners who have a greater sensitivity to non-core items that are showing the greatest price rises but have their incomes indexed at a lower rate so have had a real terms cut in their living standard of a very large amount.

[Bagpuss]

http://news.bbc.co.uk/1/hi/business/7400074.stm

So there we are. If the BofE is to try to keep a lid on inflation, interest rates will have to RISE in a recession. Clearly a recipe for changing recession into depression
So which will it be: Depression or huge inflation?

Housing debt is the problem. The Government should have acted sooner to control rising house prices and hence dodgy borrowing at low rates and stupid multiples. Now many people are coming off the fixed deals and being faced with rising utility and food costs. The only way to make ends meet is to ask for pay rises and therefore cause more inflation. I expect a summer of pay disputes and unrest and further poll misery. The Govenment only has itself to blame for fueling the fire rather than using monetary policy in more constructive way.

[oracleslave]

Housing debt is the problem. The Government should have acted sooner to control rising house prices and hence dodgy borrowing at low rates and stupid multiples. Now many people are coming off the fixed deals and being faced with rising utility and food costs. The only way to make ends meet is to ask for pay rises and therefore cause more inflation. I expect a summer of pay disputes and unrest and further poll misery. The Govenment only has itself to blame for fueling the fire rather than using monetary policy in more constructive way.

You don't half sound like AtW.