David Lock

It's not going to be fun over the next few years, that's for sure. China is a huge factor and and I can't see them slowing down especially their increasing influence in places like Africa and S. America - an insatiable desire for raw materials. Just a neater version of what UK did when we built the British Empire. But if the Chinese government ever loosened their vice like grip on their economy and control of its people then who knows.

And UK internal pressures are a pain for HMG. Inflation means more pressure on wage increases which means more inflation although I don't think many will want to strike for fear of losing their jobs (unless they work for BA of course). A spiral of pain!!

BoE could do more to strengthen the exchange rate so I read which would help on commodity prices. But UK needs to hang on to the skills and trades where it can still help the country. These include banking, medical research and innovative thinking in scientific research. Oh and get out of Europe

dl

tony de wonderful

Yes we need more bankers.

f1_fan

iTrader: (9)

Unemployment up another 44,000 today.

The coalition is going to have to walk a tightrope to sort this out.

David Lock

Bankers are a necessary evil and contribute huge amounts to the British economy (and themselves )

dl

tony de wonderful

At the risk of repeating myself, banking contributes zero wealth to the economy and Bankers are just an overhead on me and you.

Wurzel

iTrader: (1)

Ok can some one explain why we need or even have inflation in laymans terms.

Prices rise and fall all the time depending on how greedy the seller wants to be, if the price rises then naturally you get less for your money but the money is still the same value? Isn't it just pot luck ?

I don't understand why prices of things have to rise just because the country is in a recession (sp) also how will the BOE raising interest rates lower inflation.?

If I buy something from x for 100p and sell it to y for 110p then everyone is happy, if however I can't sell it to y for 110p what is the use in putting the price up as still no one is going to buy it. If I lower the price to 90p and y buys it then I am out of pocket by 10p and no matter how much the interest rate rises I am still out of pocket.

The cost of raw materials is however much the person who has them wants to sell them for and no amount of government figure fiddling is going to change that.

Sorry for being thick but it seems to me that we don't need inflation and we don't need interest rates, they are just means for one person to screw over another.

If you don't like the price someone is selling stuff at then go elsewhere until you do.

David Lock

I thought they paid tax (a lot) - doesn't that help or have I missed something?

Even the huge amounts they earn are mostly recycled back into the economy, aside from the Porsches that is

dl

tony de wonderful

Can you eat paper money?

Leslie

And all because of the utter incompetence of your heroes when they were in power. I don't know how you can live with yourself Pete.

Les

Terminator X

iTrader: (7)

The cheapest price will not be zero (or close to it) though + you won't have visibility of all the prices all of the time ... you can avoid being extravagent (sp?) but still need to purchase essentials which probably incl fuel for most people. The cost of everything is rising yet people are mostly on stagnating wages or indeed being made redundant.

TX.