Contact Forum Editor

Send an email to our Forum Editor:

PLEASE NOTE: Your name is used only to let the Forum Editor know who sent the message. Both your name and email address will not be used for any other purpose.

Speakers Corner

It's free to register, to post a question or to start / join a discussion

View Forum Rules | Contact Forum Editor

 

Stop Pussyfooting Around PM !

« previous 2

oresome

Likes # 0

Posted August 16, 2012 at 2:11PM

Boris Johnson has been beating his chest following a successful Olympics.

Rather than reining in expenditure, he wants the government to be bold and instigate some large infrastructure projects to kick start the economy.

We haven't really started reducing our over expenditure yet as what cutbacks are being made are matched by falling tax receipts.

So is Boris right? Should we forget the deficit reduction for now and get the economy moving again?

Like this post
Quickbeam

Likes # 0

Posted August 17, 2012 at 10:34AM

What's the great disadvantage of 20% inflation Vs strict austerity? After all, we survived the high inflation of the '70s without as much grief as we're having now.

Like this post
morddwyd

Likes # 0

Posted August 17, 2012 at 8:08PM

"we survived the high inflation of the '70s without as much grief as we're having now."

Speak for yourself.

As someone on a fixed income I was frequently on a financial knife-edge in the 70s.

Because I was the the public sector an RPI "correction factor" was applied to our salary each month, and you never knew until you actually got paid how much you were going to get.

I used to finish work at 5 and then go out and drive a taxi until midnight, and also drove one all day on Saturday and Sunday.

There were members of the armed forces on what were then called supplementary benefits because they weren't getting enough to live on.

We survived, but not without grief.

Like this post
zzzz999

Likes # 0

Posted August 18, 2012 at 6:00AM

We've just come through three bouts of quantitive easing and inflation remains below 5%. The cranking up of inflation only happens if the economy is reinflated with no regard for when the tap has to be turned off and the economy balanced. The alternative Austrian Economic Thinking would have thrown us all to the wolves of the market with the devastation and destruction that causes.

Like this post
oresome

Likes # 0

Posted August 18, 2012 at 2:29PM

Part of the problem with the money supply seems to be that the Government wants the banks to lend more and yet at the same time rules are introduced to force the banks into holding greater reserves to improve their resiliance.

Plus the banks still hold a great deal of bad debt which still has to be written off when they admit to it, so they need to get their own house in order first.

I'm not sure how many businesses actually have the confidence to borrow in order to expand at the moment anyway. Who's got the money to buy their goods or services?

Similarly with houses. Who has the confidence to take out a large mortgage even if they could get one and the confidence property prices will not fall further?

Like this post

« previous 2

Reply to this topic

This thread has been locked.



Check out PC Advisor's other tech forums

Send to a friend

Email this article to a friend or colleague:

PLEASE NOTE: Your name is used only to let the recipient know who sent the story. Both your name and the recipient's name and address will not be used for any other purpose.