As we head for economic desolation, there's yet more news to cheer everyone up...
INSTANT VIEW - GDP shrinks more than expected | Reuters
While a cut in interest rates will be useful. I do think it is akin to trying to turn the tide by blowing at it. Certainly another half a percent will have an impact for the many mortgage owners, however I feel the real pressure on peoples wallets has come from the price of oil, domestic fuel bills and council tax rises.
If this government, or indeed any government, wanted to make a real impact they would be cutting the interest rates, forcing petrol companies to bring the cost of petrol down to reflect the new cost per barrel, they would also be ensuring domestic fuel bills are drastically reduced as again, the prices shot up when oil went up, but have we seen any fall since it fell to half the price it was a few months ago? It's been strangely quiet on that front hasn't it? The same with Council taxes which are now ridiculous levels in many areas and for which a great many people can see no discernible benefit.
It seems rather obvious to me is that if you want people to spend money, you have to stop taking it from them faster than they can earn it. Especially now that even those not averse to using credit, are trying to avoid that as much as possible.
And the obscenity of it all, is that the companies who have caused this petrol, utility companies for example, are all making obscene profits.
Or is this just an overly simplified view of things?
INSTANT VIEW - GDP shrinks more than expected | Reuters
While a cut in interest rates will be useful. I do think it is akin to trying to turn the tide by blowing at it. Certainly another half a percent will have an impact for the many mortgage owners, however I feel the real pressure on peoples wallets has come from the price of oil, domestic fuel bills and council tax rises.
If this government, or indeed any government, wanted to make a real impact they would be cutting the interest rates, forcing petrol companies to bring the cost of petrol down to reflect the new cost per barrel, they would also be ensuring domestic fuel bills are drastically reduced as again, the prices shot up when oil went up, but have we seen any fall since it fell to half the price it was a few months ago? It's been strangely quiet on that front hasn't it? The same with Council taxes which are now ridiculous levels in many areas and for which a great many people can see no discernible benefit.
It seems rather obvious to me is that if you want people to spend money, you have to stop taking it from them faster than they can earn it. Especially now that even those not averse to using credit, are trying to avoid that as much as possible.
And the obscenity of it all, is that the companies who have caused this petrol, utility companies for example, are all making obscene profits.
Or is this just an overly simplified view of things?
