Thursday, Jul 27, 2006

Spiralling debt and spiralling inflation? Bets are off for a rate rise.

BBC News: Debt woe blamed on rising bills

Consumer spending is being choked by rising fuel costs. To a rational observer, this would mean a rate rise is needed. Our esteemed and hard-working MPC no doubt see things differently and (peversely) would see this as supporting the case for a cut!

Posted by paul @ 12:24 PM (596 views)
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1. Thesqueeze said...

"Utility companies should consider freezing price increases for people who are on debt management plans."

absolutely, those poor indebted heart bleeds.....

Thursday, July 27, 2006 01:13PM Report Comment

2. harold said...

More tales of woe for the MPC.

Thursday, July 27, 2006 01:38PM Report Comment

3. kpjcomp said...

Yes MPC will see this as a really good reason to cut interest rates, it will make total sense to them that were encouraged to pay all of our bills, council tax, fuel etc on credit too.
I can see the adverts on telly now, "Gas/Electric bills playing on your mind? Why pay today when you can spread the costs over 300 easy installments." small print-> "your home is at risk if you do not keep up repayments on a mortgage or other loan secured on it".

Thursday, July 27, 2006 02:06PM Report Comment

4. Dnd said...

Stagflation/hyperinflation here we come...

Thursday, July 27, 2006 04:38PM Report Comment

5. Rubberneck said...

So let me get this right.

They're saying that by all means you should go out and rack up countless storecards, credit cards and personal loans to cover luxuries like flash cars, holidays, furniture and electronics as you will then get a sympathetic freeze on the essentials such as utilities.

What about those of us who don't indebt ourselves buying this stuff... do we get a freeze or do we make up the shortfall for the bloke next door with the Lamborghini and the starving children?

Thursday, July 27, 2006 04:43PM Report Comment

6. tyrellcorporation said...

'It said the number of people owing more than 100,000 had nearly doubled in a year'

I'm sorry but what f***wits end up 100,000 in debt - by mistake?!?

I can sort of imagine it if a business fails or something like that but these freaks have probably just spent the last couple of years going to florida on their hols, buying Cayennes and eating out every night!

I say let evolution take it's natural course...

Thursday, July 27, 2006 10:21PM Report Comment

7. denzil said...

>>Debt woe blamed on rising bills

So the rediculously high price of property which means that people have to spend 50%+ plus of take home pay on a mortgage and the highest tax burden since the 1970 have nothing to do with aiding the debt mountain?!?

Friday, July 28, 2006 09:14AM Report Comment

8. Charlieg707 said...

At first I thought this Property Boom would indeed go on forever but this and other leading economic indicators seem to indicate that the party is over, the music is getting quieter the drinks are running out and people are heading home.

This should work out well for me as I can not even look at buying a house for a couple of years yet.

The key problem is not just consumer debt but Government borrowing to pay for an ever increasing army of Civil Servant Jobsworths..

Friday, July 28, 2006 11:00AM Report Comment

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