Tuesday, Nov 13, 2007
Evan Davies - The Economy is at a Turning Point
BBC News: Why Inflation Matters
Evan Points out the blindingly obvious, 'falling house prices and declining consumer spending do become a real problem if they leave the economy with too little spending to keep everybody employed.'
Posted by enuii @ 03:58 PM (1502 views) Add Comment
16 Comments
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1. enuii said...
I love contradictions and this article is full of them:-
e.g. cut interest rates and people won't borrow more money if they have already had enough and 'There are still grounds for debate on whether inflation is really a problem at all at the moment. Remove energy, and our rate is on target.'
Add in Ewans Vagueisms such as:-
I certainly don't believe in excluding the fastest rising prices when assessing underlying inflationary pressure at home. 2.1 is 2.1 in my book.
'it is that flexibility around the symmetry of an inflation target might be helpful.'
'the Fed may be acting far too cautiously in cutting rates, fighting a non-existent battle against price rises.'
Priceless!
2. doomwatch said...
For all his babble, Evan is a bear at heart. It was mentioned on 5 livew that he allegedly kept telling Andy Verity that rising house
prices should not be broadcast as a good thing. Think this possibly lead to that "Truth about property" programme
that rans a few weeks ago on BBC2.
3. techieman said...
Anyone noticed the price of gold - from $850 down to approx $800, in a few days. Nothing to worry imho - this is normal reaction, my feeling is we have a bounce to test the $850 then go lower (another buying opp), but i spose you long term bulls now might be a time to accumulate?!??!? Or this could be the quick fall (it dont worry me none its a quick fall - but does look scary just the same).
4. alan said...
Ok, I admit it. I've eaten too many strawberries and bacon!
Seriously, If you want to please struggling homeowners, cut rates. If you want to meet inflation targets when inflation is rising, increase the targets. It can only be a short time before Darling chooses the slippery path to keeping people happy and voting Labour.
My forecast is a rate cut, with increased inflation targets. Oh, and blame the "Axis of Evil" or the Chinese.
It's economic madness, but who cares, people will vote for it...!
5. dohousescrashinthewoods said...
If our economy wasn't DOA with HPI and debt as the only life support, everyone would be cheering falling prices - families could move up, kids could move out and everyone could afford something modest - a basic standard of living, rather than these hen-coop excuses for houses.
Unfortunately, with the Beeb yanking the nation's property plank, (for what, let me guess, "safety and security" no doubt) we have mortgaged our future and are about to get slaughtered.
(apologies if anyone was eating whilst reading that, it's an unpleasantly fitting image)
6. alan said...
C'mon lets not get morbid. The nation isn't finished yet. We still have lots of boxed sets of Blackadder DVDs to sell to the Chinese....
Oh, and all those nice missiles and planes. Thank goodness for Dubya, where is he going to invade next?
7. uncle tom said...
I don't see how the BOE can seriously contemplate a rate cut at the moment while staying within their remit. The last time factory gate inflation was at this level, the bank rate was over 6% and we didn't have a backdrop of soaring commodity prices. They are caught between a rock and a hard place - if the markets lose confidence in sterling, the effect on inflation will be massive.
8. autopilotengage said...
Are Davis and Applegarth related?
9. enuii said...
I can just about remember the last time Labour screwed up big style in the 1970's (if this is the right perception), we will need rising unemployment to make everyone sit up and pay attention in the UK. Unfortunately NeuLiebor has discovered a great wheeze to cover such statistics up called further education. Travelling home from work today I had to turn the Radio off when their latest wheeze of making university qualifications 'affordable' for everyone! They now intend to keep the figures down by ensuring everyone stays in in further education at their own (or their parents) expense until they are at least 21 by getting dumbed down degrees for non-existent jobs!
By the way is it me or is the government solely responsible for funding local radio via its propaganda advertising as there seems an awful lot of the patronising stuff.
10. planning4acrash said...
It only makes sense to train unemployed rather than to have them on benefits enuii. My only annoyance is that you don't get good subsidies to do MSc's in this country. What should end is too many BSc's in non-subjects (universities should have to carry out a needs test before bringing on-line certain categories of courses to obtain government support) That would get them to focus more on what the country actually needs, and vocational subjects, apprenciships and support for start-up businesses (Princes Trust style) should have as much emphasis.
Tho I'm totally against raising school age to 18 because college will be full of dispondents and why not do a gap year at that age?! But otherwise it makes total sense. Once again, would you rather your tax money went on education or dole?!
11. Jonb said...
Enuii
He said a "non-existent battle against price rises", not a "battle against non-existent price rises". There is a subtle difference which is probably lost on most of the BBC readers.
12. Ticktock said...
Planning4acrash,
..and who decides what is, and what is not, a ' non-subject' ????
If you go down this (American) route you eliminate much that is valuable in education.
There will be no 'education' that does not promise to raise GDP, or enhance personal 'career' aspirations in some way
Bang goes history, philosophy, cultural studies etc.
Before you know it you'll have a Nation of economics/ business studies graduates who know nothing of the REAL world, but are actually in charge of Nation States.
They'll presume that invading Nations and 'rebuilding' them again in their own image is a good idea if there is a 'business case' for doing so etc. etc.
Lets not replicate the failure of our retarded cousins by embracing their short sighted and foolish educational system.
13. justwatching said...
planning, enuii
interesting posts
university for all is very wrong, this is not what any economy needs.
scrap grammar schools, why? because they work. Lets bring all down to the lowest common denominator, call it comprehensive education and then all is well?
what we actually need is the abolition of the concept of equivalency in education. Teach the academics, and have technical colleges, and vocational colleges and be done with the one size fits all policy.
14. George Monsoon said...
What a snobbish comment.
I have noticed an alarming increase in class distinctive posts.
STOP IT NOW .
15. Noodlebike said...
Here here p4c, my sentiments for years..!!
16. justwatching said...
george, which one is snobbish?