Comments on: Two Britains and public sector inflation http://johnredwoodsdiary.com/2008/12/01/the-bank-of-england-interest-rates-and-borrowing/ Incisive and topical campaigns and commentary on today's issues and tomorrow's problems Thu, 09 Feb 2012 20:05:58 +0000 hourly 1 By: Stuart Fairney http://johnredwoodsdiary.com/2008/12/01/the-bank-of-england-interest-rates-and-borrowing/#comment-8735 Stuart Fairney Sat, 16 Oct 2010 23:46:16 +0000 http://www.johnredwoodsdiary.com/?p=2260#comment-8735 Thanks for the response, there are obviously a lot of 'hairdressing maniacs' out there. Thank God for the council or one might find oneself enjoying a nice glass of wine whilst at the barber. Will the terror arrests will follow? (Mr Wolfgang, Iceland, someone who puts their bin out on the wrong day, someone who wants their kid to go to a decent school, Mr Green and now someone in possession of peroxide and scissors ~terrorists all!). Mercifully they didn't offer a mince pie because I reckon they would be in breach of the following regulations: ~ Planning, not authorised for the sale or distribution of food under the use classes order ~ Health & safety, no properly trained staff on hand to serve food with appropriate hygeine certificate ~ Improperly insured, not insured to offer food ~ Health & safety again, inadequate sanitary provisons for the sale of food ~ Improper taxation declarations, Shops selling or otherwise offering food are subject to different rentals levels and therefore business rates, they are thus tax evaders And I daren't even mention government edicts on salt consumption, processed food and transfats, five-a-day fruit and vegetables, obesity etc etc ad nauseum. Truly we need a bonfire of regulations and a culling of the useless state employees Thanks for the response, there are obviously a lot of 'hairdressing maniacs' out there. Thank God for the council or one might find oneself enjoying a nice glass of wine whilst at the barber. Will the terror arrests will follow? (Mr Wolfgang, Iceland, someone who puts their bin out on the wrong day, someone who wants their kid to go to a decent school, Mr Green and now someone in possession of peroxide and scissors ~terrorists all!).

Mercifully they didn't offer a mince pie because I reckon they would be in breach of the following regulations:

~ Planning, not authorised for the sale or distribution of food under the use classes order
~ Health & safety, no properly trained staff on hand to serve food with appropriate hygeine certificate
~ Improperly insured, not insured to offer food
~ Health & safety again, inadequate sanitary provisons for the sale of food
~ Improper taxation declarations, Shops selling or otherwise offering food are subject to different rentals levels and therefore business rates, they are thus tax evaders

And I daren't even mention government edicts on salt consumption, processed food and transfats, five-a-day fruit and vegetables, obesity etc etc ad nauseum.

Truly we need a bonfire of regulations and a culling of the useless state employees

]]> By: figurewizard http://johnredwoodsdiary.com/2008/12/01/the-bank-of-england-interest-rates-and-borrowing/#comment-8739 figurewizard Sat, 16 Oct 2010 23:45:05 +0000 http://www.johnredwoodsdiary.com/?p=2260#comment-8739 Re. 'The huge amounts of liquidity being built up.' - The lack of inflationary pressure from this on the private sector may well be the case in the short term but as the performance of the pound on the international money markets shows, this term will be very short indeed. In addition given the dramatic fall in overseas earnings through the City of London, the appalling state of our balance of payments will be soon take centre stage. This is why George Osborne is going will be shown to have been absolutely correct in pointing out last week that: 'In the end all Labour governments run out of money'. Re. 'The huge amounts of liquidity being built up.' – The lack of inflationary pressure from this on the private sector may well be the case in the short term but as the performance of the pound on the international money markets shows, this term will be very short indeed. In addition given the dramatic fall in overseas earnings through the City of London, the appalling state of our balance of payments will be soon take centre stage. This is why George Osborne is going will be shown to have been absolutely correct in pointing out last week that: 'In the end all Labour governments run out of money'.

]]> By: APL http://johnredwoodsdiary.com/2008/12/01/the-bank-of-england-interest-rates-and-borrowing/#comment-8743 APL Sat, 16 Oct 2010 23:45:05 +0000 http://www.johnredwoodsdiary.com/?p=2260#comment-8743 I see the US National Bureau of Economic Research has revised its position and announced that the United States has been in a recession for a year. This is not news for anyone who does not live in a sort of economic bubble, insulated from all the effects of the real world economy. I guess that would be Politicians. I see the US National Bureau of Economic Research has revised its position and announced that the United States has been in a recession for a year.

This is not news for anyone who does not live in a sort of economic bubble, insulated from all the effects of the real world economy. I guess that would be Politicians.

]]> By: D BC Reed http://johnredwoodsdiary.com/2008/12/01/the-bank-of-england-interest-rates-and-borrowing/#comment-8744 D BC Reed Sat, 16 Oct 2010 23:45:05 +0000 http://www.johnredwoodsdiary.com/?p=2260#comment-8744 Agreed.But nobody ever concedes there is bureaucracy in large private sector concerns. Agreed.But nobody ever concedes there is bureaucracy in large private sector concerns.

]]> By: Brian Tomkinson http://johnredwoodsdiary.com/2008/12/01/the-bank-of-england-interest-rates-and-borrowing/#comment-8732 Brian Tomkinson Sat, 16 Oct 2010 23:45:04 +0000 http://www.johnredwoodsdiary.com/?p=2260#comment-8732 JR: "In the longer term the danger is that the government will want to use the printing presses to sort out its huge debt, which will be inflationary when the banks are working again." This dreadful government will use the printing presses and inflation will go through the roof ruining everyone on fixed incomes. Can we be assured that a Conservative government would not adopt that approach to relieving the public debt? JR: "In the longer term the danger is that the government will want to use the printing presses to sort out its huge debt, which will be inflationary when the banks are working again."

This dreadful government will use the printing presses and inflation will go through the roof ruining everyone on fixed incomes. Can we be assured that a Conservative government would not adopt that approach to relieving the public debt?

]]> By: Tapestry http://johnredwoodsdiary.com/2008/12/01/the-bank-of-england-interest-rates-and-borrowing/#comment-8733 Tapestry Sat, 16 Oct 2010 23:45:04 +0000 http://www.johnredwoodsdiary.com/?p=2260#comment-8733 This year the bulge in borrowing? My take is otherwise. Business in the UK started to sink in September 2008. Until then demand had held up to a reasonable extent. Only then did unemployment really start rising. That means that government recession expenditure and falling revenues have only just started two months ago, and have, some estimate another 12 months to run, at least. Brown's deficit therefore has a long way to go before he can start hoping for it to start reducing again. In the 1981 recession, government fiscal deteriorated by 8% of GDP. If this one is as mild as that one, Brown still has negative GBP 120 billion to go before he hits rock bottom. That is assuming he doesn't need to rescue any other banks or institutions. If he slides by under GBP 250 billion deficit, he'll be doing well. reply: Yes, of course recession effects will get worse next year, but I am assuming he will not be spending so much on bank shares - then again, you can;t be sure even about that. This year the bulge in borrowing?

My take is otherwise. Business in the UK started to sink in September 2008. Until then demand had held up to a reasonable extent. Only then did unemployment really start rising.

That means that government recession expenditure and falling revenues have only just started two months ago, and have, some estimate another 12 months to run, at least.

Brown's deficit therefore has a long way to go before he can start hoping for it to start reducing again.

In the 1981 recession, government fiscal deteriorated by 8% of GDP. If this one is as mild as that one, Brown still has negative GBP 120 billion to go before he hits rock bottom. That is assuming he doesn't need to rescue any other banks or institutions. If he slides by under GBP 250 billion deficit, he'll be doing well.

reply: Yes, of course recession effects will get worse next year, but I am assuming he will not be spending so much on bank shares – then again, you can;t be sure even about that.

]]> By: mikestallard http://johnredwoodsdiary.com/2008/12/01/the-bank-of-england-interest-rates-and-borrowing/#comment-8736 mikestallard Sat, 16 Oct 2010 23:45:04 +0000 http://www.johnredwoodsdiary.com/?p=2260#comment-8736 By taking control of the Bank of England with the FSA and the MPC, this government have, as usual, taken away all the checks and balances which they got from Ken Clarke. They have used their power to give what used to be called "jobs for the boys" and they continue to do this, as you show so clearly above, even now. I had not realised that this would lead to inflation, I must admit, but of course it will - even if only because the productive people will be squeezed out, governmental income through taxes will fall and more and more money will have to be borrowed. At the moment, melt down is, (while still very possible if Labour gets re elected or cannot resist nationalising more and more banks), seeming to recede, while a deep Japanese type depression seems much more likely. By taking control of the Bank of England with the FSA and the MPC, this government have, as usual, taken away all the checks and balances which they got from Ken Clarke. They have used their power to give what used to be called "jobs for the boys" and they continue to do this, as you show so clearly above, even now.
I had not realised that this would lead to inflation, I must admit, but of course it will – even if only because the productive people will be squeezed out, governmental income through taxes will fall and more and more money will have to be borrowed.
At the moment, melt down is, (while still very possible if Labour gets re elected or cannot resist nationalising more and more banks), seeming to recede, while a deep Japanese type depression seems much more likely.

]]> By: A. Sedgwick http://johnredwoodsdiary.com/2008/12/01/the-bank-of-england-interest-rates-and-borrowing/#comment-8738 A. Sedgwick Sat, 16 Oct 2010 23:45:04 +0000 http://www.johnredwoodsdiary.com/?p=2260#comment-8738 Excellent critique, it is about time you started writing David Cameron's speeches. In common with others I have been "blogging" for several years about the true extent of the economic disaster that is Gordon Brown.The worst is yet to come and there is a real chance that he will go down in history as the man who bankrupted the country. No doubt he will blame the American war of independence for our demise. Excellent critique, it is about time you started writing David Cameron's speeches. In common with others I have been "blogging" for several years about the true extent of the economic disaster that is Gordon Brown.The worst is yet to come and there is a real chance that he will go down in history as the man who bankrupted the country. No doubt he will blame the American war of independence for our demise.

]]> By: Derek http://johnredwoodsdiary.com/2008/12/01/the-bank-of-england-interest-rates-and-borrowing/#comment-8740 Derek Sat, 16 Oct 2010 23:45:04 +0000 http://www.johnredwoodsdiary.com/?p=2260#comment-8740 I think it likely that central government will hang local governments out to dry when their cash inevitably runs out. The US federal govt did the same with New York and it took it a decade to dig itself out (and, in fairness, was eventually better for it). The crime has been by central govt allowing them to empire build in return for general election votes. It's the vulnerable who genuinely require frontline council services who'll ultimately pay the price. I think it likely that central government will hang local governments out to dry when their cash inevitably runs out. The US federal govt did the same with New York and it took it a decade to dig itself out (and, in fairness, was eventually better for it). The crime has been by central govt allowing them to empire build in return for general election votes. It's the vulnerable who genuinely require frontline council services who'll ultimately pay the price.

]]> By: rugfish http://johnredwoodsdiary.com/2008/12/01/the-bank-of-england-interest-rates-and-borrowing/#comment-8741 rugfish Sat, 16 Oct 2010 23:45:04 +0000 http://www.johnredwoodsdiary.com/?p=2260#comment-8741 Err....two areas concern me here. One: Public sector over-manning at management and admin levels, PR specialists, contract 'advisers' and 'educationalists', trainers and the like - including but not limited to "Common Purpose". Two: Public sector pensions which are a ) Gold Plated, b ) Unfair, c ) Unaffordable, d ) Not worthy of paying, and e ) Not all spent within our own economy especially given the 'early retirements' of many of these people who appear to either be leaving these shores or returning to their own country and no doubt finding further work whilst being propped up by the British taxpayers. There are indeed a few other concerns but those are the main one's I think about as I wouldn't like to lose focus by writing too big a list here of Labour's crass stupidity. Err….two areas concern me here.

One: Public sector over-manning at management and admin levels, PR specialists, contract 'advisers' and 'educationalists', trainers and the like – including but not limited to "Common Purpose".

Two: Public sector pensions which are a ) Gold Plated, b ) Unfair, c ) Unaffordable, d ) Not worthy of paying, and e ) Not all spent within our own economy especially given the 'early retirements' of many of these people who appear to either be leaving these shores or returning to their own country and no doubt finding further work whilst being propped up by the British taxpayers.

There are indeed a few other concerns but those are the main one's I think about as I wouldn't like to lose focus by writing too big a list here of Labour's crass stupidity.

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