f1_fan

iTrader: (9)

... inflation has now risen from 4% to 4.4%.

What economic recovery there was is now almost certainly dead in the water and with a large proportion of the extra money from the cuts now about to be ploughed into fighting our third war what next for the country?

Looks like a double dip to me and probably a lot worse times economically than we have experienced already.

Thye said it couldn't get worse than under Labour, maybe they were wrong. And I say that as no supporter of either or any political party.

Just a fed up taxpayer and small business owener trying to make ends meet!!!

LEO-RS

BOE base rate has to rise then in response to this. Surely? If so, mortgage costs are away to shoot up for many so how does this help control inflation?

Agree though, the cost of living is horrendous just now. Not sure it's the tories fault, they were left a mountain to climb from the previous government.

alcazar

iTrader: (2)

Can't see why he's involved us in this. We already have TWO, let someone else do this one.
And that's IF ANYONE ought to be deposing a country's legal ruler............

f1_fan

iTrader: (9)

Agreed. It's just not econimically viable and there are other countires who should be doing more this time as you say if ANYONE should be doing it at all.

As for the base rates they must rise now and that will bring more hardship in the short term at least.

I know they have inherited a sh1tstorm, but the Tories aren't exactly helping right now. Too many cuts, too fast, head in the sand over the effect of fuel prices and broken election promises on VAT and fuel stablisers, and now Libya!!!

David Lock

The Gov't or BOE can do nothing about the main causes of inflation which are higher commodity prices (raw material costs) and fall in value of pound.

But I don't have any proper suggestions to help out except emigrate

dl

Lee247

So, we are all skint and all the cuts in services and increases in just about everything else is going to be used on something which is none of our business.
Funny how they can find the money when they want to and seem to have no care about the citizens struggling to live

f1_fan

iTrader: (9)

Frankly they seem to have forgotten we no longer have an empire and seem to think it is more important to be seen as a major player on the world stage than to look after the interests of their own country. Put simply they are career driven politicians and care not a jot about the real issues affecting the citizens of the UK.

f1_fan

iTrader: (9)

The latter is not really true though is it? The rising commodity prices affect every country and hence if the pound is falling against other currencies it has to be down to what the UK is doing to mitigate the effects of those inflationary pressures. Sticking your head in the sand after announcing too many cuts and a VAT rise and then getting involved in Libya is probably not seen as the best handling of an economy by other countries and markets hence the falling pound.

The Zohan

I don't get it re Libya - why isn't it the Arab League of Nations enforcing the no-fly zone. We can supply arms to them to help the cause and as an offshoot to generate revenue through military hardware sold to the ALN. At best we should be advising them, not the front line and our military committed to this.

At the very least let some of the other UN nations not fighting in Iraq and Afghanistan do their bit and play their part!

I want rid of gadaffi but it is not up to us, it is the the ALN who need to do it.

stevebt

iTrader: (8)

The government has also had to borrow an extra few billion to get by

EddScott

Libya doesn't wash with me - I thought we weren't allowed to do regime change. Is that not the excuse given every time someone asks why we don't do anything about the annual African genocide?

They even had a girl on BBC breakfast saying that she thought the no fly zone had gone too far - you could tell they weren't expecting her to say that - they replaced her for someone else the next time they discussed it who was all for it. BBC propaganda at its very best.


I guess with inflation rising there is the demand for wages to rise to compensate (although how cash strapped businesses are expected to find more money for salaries I've no idea) if this is the case, then I guess rates could do with rising a little to attempt to curb inflation assuming it will have an effect on wages demands (although I appreciate the things driving inflation won't be too affected by a rate rise)

Has inflation through commodities been driven up because of QE in the states? QE causes inflation, many things are bought and sold in dollars - is this what is fuelling inflation?

I still think inflation is going to cool off within a 12 - 18 months.

I used to buy lots of RC car parts from the states and it was almost 2 for 1 (dollar to pound) now its more like 1.5 to 1. AUS Dollars used to be more than 2 to 1, now its about 1.6 to 1.

fivetide

iTrader: (1)

No the pound is falling in value because the interest rates are rubbish. No one wants to buy pounds right now.

Sorry but an awful lot of this is just anti-govt diatribe.

The BoE control interest rates which is the main control for inflation. You asked how pushing up mortgage costs = lower inflation well it means less money in your pocket so less demand for goods, potentially less demand for things like petrol as people tighten belts which helps with the commodity issue.

Why are we in Libya? Same reason, the place needs stability asap to help get the oil issues back under control. However, at the moment the 'coalition' seems to be simply offering air support to an armed uprising. Not sure how that covers protecting citizens and from that point of view i can understand why the Arab League are feeling shifty!

5t.

hodgy0_2

the arms we sell them are not for external use, but for putting down home grown rebellions, they don't want to waste them, why would they when they know we will do it for them

f1_fan

iTrader: (9)

Exactly, which all comes down to how the economy is being handled as I clearly said.

Sorry, but that is crap. I don't care what government is in power, but I do want them to do something positive for the country and that does not include the points I have already listed. You like others seem happy to say it's all the fault of the last government, I agree to an extent although many of you seem to have forgotten the world recession, but I want us to look forwards not backwards. The Tories are in power and hence I will criticise them if I think they are doing the worng thing whch I do just as I criticised Labour when they got it wrong. What would you rather we do, sit there and say never mind it's no one's fault, let's all go bankrupt and wallow in our own self pity?

No I didn't. Why can't you read other people's posts properly before you start spouting. While you're about it would you like to teach my granny to suck eggs too?

I think you missed Paul's point. Why are WE (as in the UK) in Libya. There are plenty of countries in 'the West' who are not already fighting two unwinnable illegal wars so why don't they get involved if it is such a moral issue?

f1_fan

iTrader: (9)

Said as much on here a few weeks ago when it was first mooted and got told I was talking crap. Well I stand by it. Cameron will use Libya as a smokescreen for his party's mishandling of the economy.

Wurzel

iTrader: (1)

I think it is great that the value of the pound is falling! Long may it continue.

stilover

I just hope interest rate start to rise.

fivetide

iTrader: (1)

Rates decided by BoE not the government. As I and others clearly said so you can't say it is down to warmongering can you?

Where did i say it is the fault of the previous lot? I simply said you are blaming the wrong people and using emotive language like 'warmongering' to do it. See point one

You didn't apologies there, that was poster no2. However, since you haven't read my posts properly and added in a load of assumptions about blaming previous governments I suggest you take your own advice.

Currently sending planes etc:

USA
GB
France
Spain
Italy
Canada
Denmark
Belgium
Qatar

I guess you could add on a few more Scandinavian countries but not too many. Remember you need to be able to get there too. Germany is the big one that is missing for me but it is a UN operation and we aren't there on our own are we?

I didn't miss the point, I think we are there because of oil as I explained.

5t.

f1_fan

iTrader: (9)

LOL so now the Tories are in power the failing economy is down to the BoE whereas when Labour were in power it was down to the government. Double standards as is usual in NSR.

BTW I said while he is warmongering (which he is) rather than blaming it all on warmongering although that is part of it. As I said read my posts!!!

f1_fan

iTrader: (9)

Cool, so we wouldn't be missed. Oh except Cameron wants to use this to cover up his economic f**k up!!!

tony de wonderful

On the subject of legality you are aware this is a LEGAL action?

/How is Gadaffi a legal ruler anyway? He was never elected.

The Zohan

Where is the contribution from the Arab League - just Qatar??? Let the ALN get stuck in!

alcazar

iTrader: (2)

I know it's a legal action, but I VERY MUCH DOUBT that the UN resoloution tells us to remove Gaaffi from power, now does it?

And as for his election, or lack of, if we were bothered about THAT, why didn't we do something before?

Sorry, it doesn't wash.

fivetide

iTrader: (1)

Please show where I blamed Labia. That's the second time you've claimed it. Set you right once!

5t.

f1_fan

iTrader: (9)

Set you right twice yoursefl so now we're all sqaure.

I was referring more to the general perception in NSR in the last years of the Labour government that everything economy wise (including it would seem a global recession) was down to Labour whereas now it seems to be the BoE's fault. It is interesting to note that your post has generated not one contradictory post whereas we both know a year ago it would have been full of the anti Labour brigade telling us it was all their fault. Personally I don't think either party has what it takes to sort the econimy out and the BoE is too focused on a small number of factors to really grasp the bigger picture, but then that's just me.

Bonehead

So as someone looking at buying my first home should i get a frikkin move on or wait and see what happens?

tony de wonderful

Sorry but that wasn't my question. I asked why you said he was 'legally' the leader.

MJW

Think of all the money BAE systems will make replacing Libya's SAM capabilities though, it's not all doom and gloom

f1_fan

iTrader: (9)

In all seriousness mate I don't know. If the rates rise and I think they have to mortgages will dry up even more and prices should fall, but there comes a time when they can't fall any more as people have too much money tied up in property and the market utterly stagnates.

If you can afford to pay your mortgae with rates 4-5 % higher then you may well be OK, but who knows? There are people more qualified than me on here to give opinion and hopefully one of them will be along soon. best of luck whatever you decide