news & politics:discussion

[Neil]

1 minute ago, cellar said:

Or do you actually think the BoE sat down in a board room one day and said "What can we do to make sure everyone gets poorer?"?

that's the whole point of higher interest rates.

[steviewevie]

1 minute ago, cellar said:

I don't think you can say that "mostly it has been driven by supply side stuff" - raising interest rates has a direct impact on inflation, so as has been mentioned, we don't know what inflation would have been if rates has been set higher or lower. Changes in the supply side will be one factor, but its multi-faceted. 

I don't think you really disagree with the underlying point though, you're just arguing for the sake of it. Or do you actually think the BoE sat down in a board room one day and said "What can we do to make sure everyone gets poorer?"?

I think the BoE have one main objective, and that is to get inflation down...but they readily admit that inflation is being driven by external factors. They expect inflation to come down because energy prices are coming down, not because what they are doing with rates. I accept they have to act, but I don't accept that the decisions are completely correct because I don't think there is a completely correct decision to be made...a lot of it is a dark art based on assumptions, fear and greed...and people who argue that they against them can't really be written off...there are no simple solutions to any of this....but ultimately energy prices went through the roof, they are coming down now...knock on effects have been massive...but looks like inflation will likely drop down to below 2% in a year or so. 

[steviewevie]

31 minutes ago, steviewevie said:

What can we do to make sure everyone gets poorer?"?

also...yes, that is kind of what they're trying to do...right? stop people spending/borrowing?

[Guest]

For the people that claim Labour have no vision (this will be ignored).

[lost]

Switzerland looks a good case study. No QE during covid though interest rates did go negative. Better at being self sufficient on energy than us with more nukes but only 50% on food so imported food costs should be rising:

whilst inflation has risen across the world their currency has done the same thing up 18% against the Euro

Greater purchasing power seems to protect against the worst of inflation with it peaking at 3.5%

[steviewevie]

22 minutes ago, lost said:

Switzerland looks a good case study. No QE during covid though interest rates did go negative. Better at being self sufficient on energy than us with more nukes but only 50% on food so imported food costs should be rising:

whilst inflation has risen across the world their currency has done the same thing up 18% against the Euro

Greater purchasing power seems to protect against the worst of inflation with it peaking at 3.5%

It's full of rich people and dams.

[zahidf]

Interesting 

 

 

 

 

[steviewevie]

5 minutes ago, zahidf said:

Interesting 

 

 

 

 

I like it.

[steviewevie]

Just now, steviewevie said:

I like it.

although it is just a blueprint at the moment.

[Guest]

6 minutes ago, steviewevie said:

although it is just a blueprint at the moment.

Yet you moan about Labour offering nothing. 

[steviewevie]

41 minutes ago, Ozanne said:

For the people that claim Labour have no vision (this will be ignored).

Only skimmed it so far...but a lot of good stuff in there.

[steviewevie]

Just now, Ozanne said:

Yet you moan about Labour offering nothing. 

Hey. Chill baby. Don't be like that.

[steviewevie]

4 minutes ago, Ozanne said:

Yet you moan about Labour offering nothing. 

And not sure I ever said that. I think I have said starmer is a bit dull, and there is a perceived lack of vision from labour and people didn't know what they were for, just what they are against, but also I think I have argued people need to be patient and wait for the manifesto. And here we are ..almost...and it's ok..might even vote for them.

[steviewevie]

10 minutes ago, cellar said:

It does sound like you're basically agreeing with everything that is being said, but just championing people's right to argue against it. I'm all for a reasoned argument and discussion around possible economic alternatives, but the narrative that BoE is intentionally trying to make things worse is just laughable.

To clarify as well, inflation makes people poorer, at least by the way I (and I imagine most people) would define it - that being their spending power. Inflation impacts poor people more than it does rich people. Raising interest rates, whilst still affecting poor people more, will have a greater impact on rich people than rampant inflation would, as they would more easily weather the higher prices than they would a fixed percentage raise in their borrowing costs.

I'd happily accept that the current economic theory has it wrong, but there isn't a suitable, proven alternative at the moment. In the future we (or future generations) might be able to look back with hindsight and know there was a better solution, but at the moment decision are being made backed by decades worth of evidence and studies. Obviously even the BoE knows its not a perfect solution, hence why they've been cautious.

It kind of feels like arguing with an aanti-vaxxerat times.

Well yeah. Ok. I mean, I failed economics so what do I know. But... it just seems that they are trying to bring down inflation that is mainly driven by supply side issues by killing demand...so double the pain for us plebs...when they are predicting inflation to come down anyway. But I guess they know best. 

Edited May 11, 2023 by steviewevie

[steviewevie]

54 minutes ago, Ozanne said:

For the people that claim Labour have no vision (this will be ignored).

LibDems in a coalition will iron out some of it 

[steviewevie]

Problem with labour is that they have too many policies 

[fraybentos1]

2 hours ago, Ozanne said:

Yet you moan about Labour offering nothing. 

Trouble in paradise 😂😂😂 soon even @steviewevieis gonna lose patience with ozanne

[fraybentos1]

7 hours ago, Ozanne said:

Money Saving Expert doesn’t see the logic either. But let’s agree with the BoE. 

Classic ozanne of trying to find a tweet to back his point up as if that proves he wins an argument. Martin Lewis in the thing you’ve just posted ‘the boe have to do it’. 
 

You’re a half wit. What makes us all poorer is 10 percent inflation you doughnut!

[steviewevie]

Yes!

[steviewevie]

No!

[Neil]

13 minutes ago, steviewevie said:

No!

the big ones are as much about how much it shrank during covid as they are for growth afterwards.

[lost]

Yep strictest lockdown in the western world wasn't it?

 

[steviewevie]

edit..delete crap post

Edited May 12, 2023 by steviewevie

[steviewevie]

1 minute ago, lost said:

Yep strictest lockdown in the western world wasn't it?

 

I think it's more that we haven't been able to recover as well due to lots of factors... 

[Neil]

29 minutes ago, steviewevie said:

I think it's more that we haven't been able to recover as well due to lots of factors... 

one of those things where hindsight is a wonderful thing. cos lockdowns were a new thing they had to make it up as they went along.