Comments on: The Bank of England, inflation and printing money http://johnredwoodsdiary.com/2009/08/27/the-bank-of-england-inflation-and-printing-money/ 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: chris southern http://johnredwoodsdiary.com/2009/08/27/the-bank-of-england-inflation-and-printing-money/#comment-21641 chris southern Sat, 29 Aug 2009 22:34:19 +0000 http://www.johnredwoodsdiary.com/?p=4370#comment-21641 Free trade isn't the problem, it's the taxes that cause the problems. Higher taxes mean less competetive business within the global market, higher (and more) taxes means higher cost of living thus making workers less competetive in the global market due to the increased salaries they need. Cutting beuracracy as well as the amount of taxes whilst finding ways of reducing the goverments debt (unfortunately it's the people who have to pay it!) without increasing any taxes is the key to resolving the problem and pushing the economy forwards in the global enviroment (the world is too small for protectionism to work any more) and that is not going to be an easy task for anybody. Free trade isn’t the problem, it’s the taxes that cause the problems.
Higher taxes mean less competetive business within the global market, higher (and more) taxes means higher cost of living thus making workers less competetive in the global market due to the increased salaries they need.

Cutting beuracracy as well as the amount of taxes whilst finding ways of reducing the goverments debt (unfortunately it’s the people who have to pay it!) without increasing any taxes is the key to resolving the problem and pushing the economy forwards in the global enviroment (the world is too small for protectionism to work any more) and that is not going to be an easy task for anybody.

]]> By: Lola http://johnredwoodsdiary.com/2009/08/27/the-bank-of-england-inflation-and-printing-money/#comment-21640 Lola Fri, 28 Aug 2009 22:01:47 +0000 http://www.johnredwoodsdiary.com/?p=4370#comment-21640 RPI doesn't measure inflation of deflation. What it measures is the trend of the general price level. Inflation is the destruction of the value of money by way of its oversupply and/or reduction in quality. Deflation is the reverse. When you've had a massive inflation, as we have had under G Brown's useless stewardship we need defaltion to sort out the mess. Money in effect has to be destroyed. Letting the banks go bust would've been a good start. What we have now with QE is hyper inflation. Sooner or later this will be reflected in the general price level. RPI doesn’t measure inflation of deflation. What it measures is the trend of the general price level. Inflation is the destruction of the value of money by way of its oversupply and/or reduction in quality. Deflation is the reverse. When you’ve had a massive inflation, as we have had under G Brown’s useless stewardship we need defaltion to sort out the mess. Money in effect has to be destroyed. Letting the banks go bust would’ve been a good start.

What we have now with QE is hyper inflation. Sooner or later this will be reflected in the general price level.

]]> By: Andrew Gately http://johnredwoodsdiary.com/2009/08/27/the-bank-of-england-inflation-and-printing-money/#comment-21639 Andrew Gately Fri, 28 Aug 2009 21:08:52 +0000 http://www.johnredwoodsdiary.com/?p=4370#comment-21639 Quantative easing is not about getting the banks to lend. RBS have stated there target is to get the lending to deposits rate to 100% down from 150%. In other words the extra monies being deposited at banks as a result of quantative easing are being kept by the banks who have no intention of lending them. This isn't a bad thing as the only other option for the banks is calling in existing loans. It's just a shame they can't tell the truth on the matter but I suppose with irresponsible so called experts like Vince Cable ready to twist the truth can you blame them. Quantative easing is not about getting the banks to lend.

RBS have stated there target is to get the lending to deposits rate to 100% down from 150%.

In other words the extra monies being deposited at banks as a result of quantative easing are being kept by the banks who have no intention of lending them.

This isn’t a bad thing as the only other option for the banks is calling in existing loans.

It’s just a shame they can’t tell the truth on the matter but I suppose with irresponsible so called experts like Vince Cable ready to twist the truth can you blame them.

]]> By: Adrian Peirson http://johnredwoodsdiary.com/2009/08/27/the-bank-of-england-inflation-and-printing-money/#comment-21638 Adrian Peirson Fri, 28 Aug 2009 18:20:20 +0000 http://www.johnredwoodsdiary.com/?p=4370#comment-21638 It does seem hypocritical of Westminster, to sign we the British people to all sorts of international health and safefty legislation, hampering our Industries with expensive Quangocracy legistalation then give our Jobs away to foreign sweat shops where no such requirements exist, again call me cynical but..... If I were in the forces, I wouldn't want this Govt watching my back. It does seem hypocritical of Westminster, to sign we the British people to all sorts of international health and safefty legislation, hampering our Industries with expensive Quangocracy legistalation then give our Jobs away to foreign sweat shops where no such requirements exist, again call me cynical but…..
If I were in the forces, I wouldn’t want this Govt watching my back.

]]> By: no one http://johnredwoodsdiary.com/2009/08/27/the-bank-of-england-inflation-and-printing-money/#comment-21637 no one Fri, 28 Aug 2009 14:45:30 +0000 http://www.johnredwoodsdiary.com/?p=4370#comment-21637 free trade is OK within certain bounds one bound being countries obey some basic human rights, employment rights, health and safety, anti pollution and other similar goalposts are set, if not then free trade needs to be controlled for the benefit of all of these things there is a difference between trading things and allowing massive uncontrolled influx of Indian nationals on high tech projects into this country on inter company transfer visas, the UK/Eurpropean workforce cannot compete with such people for a whole bunch of reasons free trade is OK within certain bounds

one bound being countries obey some basic human rights, employment rights, health and safety, anti pollution and other similar goalposts are set, if not then free trade needs to be controlled for the benefit of all of these things

there is a difference between trading things and allowing massive uncontrolled influx of Indian nationals on high tech projects into this country on inter company transfer visas, the UK/Eurpropean workforce cannot compete with such people for a whole bunch of reasons

]]> By: james harries http://johnredwoodsdiary.com/2009/08/27/the-bank-of-england-inflation-and-printing-money/#comment-21636 james harries Fri, 28 Aug 2009 14:36:31 +0000 http://www.johnredwoodsdiary.com/?p=4370#comment-21636 I quote from JR's blog of 22/8/09: "There is no row, debate or discussion going on amongst Tory MPs on the issue of health reform." What are we to conclude from this statement? I quote from JR’s blog of 22/8/09:
“There is no row, debate or discussion going on amongst Tory MPs on the issue of health reform.”
What are we to conclude from this statement?

]]> By: no one http://johnredwoodsdiary.com/2009/08/27/the-bank-of-england-inflation-and-printing-money/#comment-21635 no one Fri, 28 Aug 2009 13:55:03 +0000 http://www.johnredwoodsdiary.com/?p=4370#comment-21635 john re "The conservatives (see JR recent blog) have no policy and no debate on the future of the third biggest employer in the world" he meant the NHS, althought there is a rumour Walmart is bigger, so what with Indian railways and the other one (i forget?) makes the NHS 4th biggest employer in the world? anyways thats what he meant Hope that helps Reply: yes, understood. They do have a policy on the Health Service - more money allied to reform, end to top down targets, more patient choice, patient control of records etc john

re “The conservatives (see JR recent blog) have no policy and no debate on the future of the third biggest employer in the world” he meant the NHS, althought there is a rumour Walmart is bigger, so what with Indian railways and the other one (i forget?) makes the NHS 4th biggest employer in the world?

anyways thats what he meant

Hope that helps

Reply: yes, understood. They do have a policy on the Health Service – more money allied to reform, end to top down targets, more patient choice, patient control of records etc

]]> By: Mark Parker http://johnredwoodsdiary.com/2009/08/27/the-bank-of-england-inflation-and-printing-money/#comment-21634 Mark Parker Fri, 28 Aug 2009 12:26:32 +0000 http://www.johnredwoodsdiary.com/?p=4370#comment-21634 This is an interesting dilemma of our times. Trade agreements can stop 3rd world farmers competing with our farmers, 3rd world manufacturers competing with our industry, but nothing at the moment stops software from flying around the world untouched by regulation - and software development is a big deal these days. I imagine John Redword is a "free trader" to the core, but personally I think free trade between disparate nations is a bad idea. It causes a general lowering of quality standards and incomes equalise between the nations to the disadvantage of the richer - which is usually us. Free trade with Western Europe or North America is fine by me, but not with India or China. Why should we give away our standard of living for their benefit? This is an interesting dilemma of our times. Trade agreements can stop 3rd world farmers competing with our farmers, 3rd world manufacturers competing with our industry, but nothing at the moment stops software from flying around the world untouched by regulation – and software development is a big deal these days.

I imagine John Redword is a “free trader” to the core, but personally I think free trade between disparate nations is a bad idea. It causes a general lowering of quality standards and incomes equalise between the nations to the disadvantage of the richer – which is usually us. Free trade with Western Europe or North America is fine by me, but not with India or China. Why should we give away our standard of living for their benefit?

]]> By: Robert http://johnredwoodsdiary.com/2009/08/27/the-bank-of-england-inflation-and-printing-money/#comment-21633 Robert Fri, 28 Aug 2009 11:16:19 +0000 http://www.johnredwoodsdiary.com/?p=4370#comment-21633 Correct being the most complicated key component, with Siemens being by far the number 1 in this field. Correct being the most complicated key component, with Siemens being by far the number 1 in this field.

]]> By: StevenL http://johnredwoodsdiary.com/2009/08/27/the-bank-of-england-inflation-and-printing-money/#comment-21632 StevenL Fri, 28 Aug 2009 00:35:56 +0000 http://www.johnredwoodsdiary.com/?p=4370#comment-21632 I think we need less prevaricating and 'consultation' and more leadership and direction. I would much rather see any increased borrowing spent on energy infrastructure like the Severn Barrage, new motorways and roughshot ridden over the bird-lovers etc that oppose progress. I think we need less prevaricating and ‘consultation’ and more leadership and direction. I would much rather see any increased borrowing spent on energy infrastructure like the Severn Barrage, new motorways and roughshot ridden over the bird-lovers etc that oppose progress.

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