Mervyn King...... useless?
Discussion
What are your views very clever or completely useless?..... http://www.nytimes.com/2011/02/07/business/07king....
Misguided
IMO he is making the same mistake Greenspan made (which brought us to the current situation) of keeping interest rates too low after the crises. Measured 1/4 point rises in base rates would have sent a strong anti-inflation signal while still not hitting borrowers much (many of whom are borrowing at rates far removed from BOE base rates)
IMO he is making the same mistake Greenspan made (which brought us to the current situation) of keeping interest rates too low after the crises. Measured 1/4 point rises in base rates would have sent a strong anti-inflation signal while still not hitting borrowers much (many of whom are borrowing at rates far removed from BOE base rates)
Fittster said:
Over the last 2 years has the amount of cooper used exploded and the global population increased to explain the rise in food prices? The factor that has changed is the amount of hot money created by central banks.
No, but there has been a number of crop failures in Russia, Australia, Africa etc. So, which demand hasn't increased, supply has been compromised.Frankly, I find the only thing I buy that has increased in price is fuel. Everything else seems no more expensive if you take advantage of sales, reductions, offers etc.
JagLover said:
loafer123 said:
Resource scarcity.
Raising interest rates would be pointless.
Not at all, for one thing it would help savers obtain a more decent return on their money.Raising interest rates would be pointless.
If, as most seem to think, inflation is being driven not by demand but by supply then raising the rates would not have any positive effect.
johnfm said:
No, but there has been a number of crop failures in Russia, Australia, Africa etc. So, which demand hasn't increased, supply has been compromised.
Frankly, I find the only thing I buy that has increased in price is fuel. Everything else seems no more expensive if you take advantage of sales, reductions, offers etc.
Jim O'Neill broke down the numbers in the Telegraph the other week, and reckoned there's $600-800bn worth of consumption being added to global demand by the BRICs annually.Frankly, I find the only thing I buy that has increased in price is fuel. Everything else seems no more expensive if you take advantage of sales, reductions, offers etc.
ZondaMark said:
Jim O'Neill broke down the numbers in the Telegraph the other week, and reckoned there's $600-800bn worth of consumption being added to global demand by the BRICs annually.
That would make sense - especially as these up and comers discover the joys of meat over rice based diets.Gassing Station | News, Politics & Economics | Top of Page | What's New | My Stuff