news & politics:discussion

[steviewevie]

 

[steviewevie]

massive protests going on in France over that pension age thing...imagine getting angry about stuff like that?!

[Guest]

2 hours ago, steviewevie said:

But at same time they have forecast inflation to drop rapidly soon...because of energy prices coming down...and this inflation was always mainly driven by supply side...so isn't a rate rise unnecessary..or even more harmful?

(I know f-all about how all this works though)

Yeah that’s it, inflation now is driven by supply chain issues not consumer spending therefore there isn’t a need to put pressure on how much people have available to spend. All they are doing is making it tougher for people when it is already tough.

They should be lowering interest rates to help make sure people have more money available to themselves. 

[Neil]

16 minutes ago, steviewevie said:

massive protests going on in France over that pension age thing...imagine getting angry about stuff like that?!

our lovely govt are keen to sneak in an extra year.

[cellar]

1 hour ago, Ozanne said:

Yeah that’s it, inflation now is driven by supply chain issues not consumer spending therefore there isn’t a need to put pressure on how much people have available to spend. All they are doing is making it tougher for people when it is already tough.

They should be lowering interest rates to help make sure people have more money available to themselves. 

It's just not as black and white as that. If you think the rates shouldn't have risen because you don't want people to struggle, then I get that, but it's ignoring economic principles.

Lowering interest rates encourages spending, and spending encourages inflation. There are multiple factors at play when it comes to inflation, controlling interest rates is just one of I'd say three that can be actually used as a mitigation tool.

Either way, it's not a simple decision.

[Guest]

17 minutes ago, cellar said:

It's just not as black and white as that. If you think the rates shouldn't have risen because you don't want people to struggle, then I get that, but it's ignoring economic principles.

Lowering interest rates encourages spending, and spending encourages inflation. There are multiple factors at play when it comes to inflation, controlling interest rates is just one of I'd say three that can be actually used as a mitigation tool.

Either way, it's not a simple decision.

People don't have the money to spending as it is which is part of the reason the economy isn't growing, so the BoE putting interest rates up will only add to that.

Interest rates should go up when inflation is rising due to consumer confidence/spending; inflation isn't rising at the moment due to that, it's rising because of supply chain pressures. Therefore the normal measures to tackle inflation don't apply here.

[cellar]

13 minutes ago, Ozanne said:

People don't have the money to spending as it is which is part of the reason the economy isn't growing, so the BoE putting interest rates up will only add to that.

Interest rates should go up when inflation is rising due to consumer confidence/spending; inflation isn't rising at the moment due to that, it's rising because of supply chain pressures. Therefore the normal measures to tackle inflation don't apply here.

I think you're misunderstanding inflation, or more specifically the interactions that cause and can allay it. There are multiple competing factors, but they aren't directly linked over the positive and negative scale. That is to say, inflation caused by supply side issues can be reduced without addressing the problem of supply (which is the situation we find ourselves in, as long as the war in Ukraine continues).

It seems redundant to be discussing this though, as the people making these decisions are (we would hope) more qualified to make them than we are. Unless you think there is a conspiracy going on.

[lost]

Worth pointing out only a third of households own a house that is mortgaged. The rest either rent or own outright. Pensioners for example with no mortgage and cash savings will be probably increasing their spending currently due to higher income levels.

 

[Crazyfool01]

think I mentioned this a month or so ago 

 

[Guest]

1 hour ago, cellar said:

I think you're misunderstanding inflation, or more specifically the interactions that cause and can allay it. There are multiple competing factors, but they aren't directly linked over the positive and negative scale. That is to say, inflation caused by supply side issues can be reduced without addressing the problem of supply (which is the situation we find ourselves in, as long as the war in Ukraine continues).

It seems redundant to be discussing this though, as the people making these decisions are (we would hope) more qualified to make them than we are. Unless you think there is a conspiracy going on.

I understand the basics of what's going on, I just disagree with the methods being used to tackle it. I don't think there's a conspiracy but I do feel there is a concerted effort to make borrowing more expensive and in-turn they will make people poorer when they should be doing the opposite.

[steviewevie]

6 minutes ago, Crazyfool01 said:

think I mentioned this a month or so ago 

 

Oh god. We really going to try and rejoin?

[Crazyfool01]

Just now, steviewevie said:

Oh god. We really going to try and rejoin?

dunno but thats the way I feel we are going and Labour could definately do with moderating  its stance 

[steviewevie]

Just now, Ozanne said:

I understand the basics of what's going on, I just disagree with the methods being used to tackle it. I don't think there's a conspiracy but I do feel there is a concerted effort to make borrowing more expensive and in-turn they will make people poorer when they should be doing the opposite.

Bank of England's main concern is getting inflation down. It's up to govt fiscal policies to distribute wealth.

[Guest]

1 minute ago, steviewevie said:

Bank of England's main concern is getting inflation down. It's up to govt fiscal policies to distribute wealth.

They are doing a cracking job with it atm.

[steviewevie]

1 minute ago, Crazyfool01 said:

dunno but thats the way I feel we are going and Labour could definately do with moderating  its stance 

For now I think best bet is a closer relationship..i.e. make brexit work. Maybe that will be rejoin something one day but surely noone wants to reignite the whole remainer vs leaver thing again. Too divisive and corrosive.

[Guest]

The polling in that article isn't really helpful, everyone knows Brexit is a mistake and Labour going around saying that won't really do anything. It'll just get the Tories and their client media to jump on them. The polling in that article doesn't say anything about 'rejoining' either, so in a way the current Labour policy is the correct one as they are highlighting failings with the Tory Brexit policy and will arrange for closer realignment to the EU; which in-time will mean a better chance of rejoining.

[steviewevie]

If we had PR I expect we'd have a rejoin party. 

[Neil]

25 minutes ago, steviewevie said:

Oh god. We really going to try and rejoin?

IT WOULD OPEN UP A NEW FRONT IN THE CULTURE WARS.

[mattiloy]

Yey for Thatcher!

How to win friends and influence people in former mining communities in the red wall and Scotland.

[Guest]

I've just spent my Thursday evening watching Keir's speech from earlier on in full. I thought it was a very good speech which isn't a surprise given it's his home turf of crime. I thought it was also noticeable that he spent a pretty long time answer questions from the media, he never used to answer that many and shows the confidence he's gained to be able to do that.

Some might focus on the 1 line he used but as a whole it was a good speech with some good policies coming from it.

[Neil]

This one is for the French

 

[Justiceforcedave]

6 minutes ago, Ozanne said:

I've just spent my Thursday evening watching Keir's speech from earlier on in full. I thought it was a very good speech which isn't a surprise given that I think everything Keir does is very good.

Fixed for you 😉

[Guest]

32 minutes ago, Justiceforcedave said:

Fixed for you 😉

Fair.

[Neil]

31 minutes ago, Justiceforcedave said:

Fixed for you 😉

even if he was left-ist perfection to make the most die_hard corbynista happy, he couldn't fix all the problems, if he promised a huge housebuilding program, to create jobs and homes he couldn't do it, places are kicking off at the tory housebuilding plans.

[fraybentos1]

13 hours ago, cellar said:

Why? It's a tricky decision for sure, and if inflation figures hadn't risen yesterday there would be a stronger case for staying at 4%, but still coming with its own risks.

Short term pain, but hopefully mitigating longer term pain.

Cause he doesn’t want his mortgage rate to go up when he renews. Nothing to do with helping poor people. 
 

10 percent inflation is brutal for people on low incomes. Ozanne somehow thinks he knows  better than the Fed, Bank of England and ECB etc cause he follows that crackpot Richard Murphy on twitter. He’s not even an economist!