Yesterday's fall in GDP cannot be blamed on mere bad weather and shows the government must do more for small businesses or risk a double-dip recession, business lobby groups have said. Yesterday, the Office for National Statistics said the GDP fell by 0.5 per cent in the fourth quarter of 2010, compared to 0.7 per cent growth in …
one cold month
lets have it right. It would take one cold day in hell before the bloodless nightcrawler will change tack.
like all tories from time immoral, if your skint, you are on your own
...as opposed to Nulabour...
...whereby if you're not skint, they'll tax you until you are, and tattoo a barcoded serial number on your forehead while they're doing it.
...as opposed to ConDem'd Britian....
who will happily see the masses pay the most, whilst those with more cash are allowed to acrue more and more. Hardly very 'social'. And we wonder why there are so many trying to screw the system for what they can get (an example set by the condems).
No wonder the coward remained a coward.
The real problem is that the media denigrate any politician who has the balls to go...oops, things have changed, new policy, new action required... so even when they are clearly wrong (as Thatcher, Major, Blair, Brown and now this lot have been) they feel obliged to pretend they are cleverer than the rest of us and we are so stupid we can't see the only way to fix the increasing mess is to keep s***t**g.
There are only a few actions that will help:
a) Use the two banks we own to cut business bank charges and loan rates by TELLING them what charges and interest rates they are allowed to change
b) Stop using interest rates to try and control inflation. They don't really work. What happens when you put them up is you prevent investment in our future, investment in increased production, you move money from those with debt (about 40% of the population) to those with savings (about 2%) and leave the rest untouched and untroubled. Instead use tax which affects everyone.
c) Throw the rest of us a morsel of meat so we feel better - such as 110% tax on all bank bonus payments this year.
No to 'stabiliser', yes to duty freeze, double yes to duty cut
The idea of a 'fuel stabiliser' concerns me; they proposed this the last time fuel prices were where they are now (mid 2008) and then went very quiet when prices dropped back down again. I can only presume that such a 'stabiliser' would lock us in to £1.30/l diesel if oil prices go down, yet if they go up then of course there will be 'no choice' but to increase prices.
Also, if the government was to 'stabilise' the price by making duty inversely proportional to oil prices or wholesale fuel prices; then I imagine that OilCos might be tempted to massage those prices a little higher, knowing that the government will take the hit as pump prices are locked.
As a small business type with a small fleet of vans (and a lorry for good measure) I think a good start would be to stop putting the bastard duty up; never mind stabilisers. Our particular industry is still very tender after a brief spurt of recovery last year, we really dont need one of our main costs (and our customers' too) being hiked. I know the govt needs the cash at the moment, but I would draw their attention to an old saying about geese and golden eggs.
And the next crucifiction will be carried out by the BofE MPC
Seems that an increasing number of these people are losing their marbles (2 at the latest count).
They appear to think that they can reduce global inflation by further sucking money from the British poor to give to the rich by imposing higher interest rates.
The inflation we see in the UK is based on global oil and food prices rising, clearly we consume so much of both compared to say the Chinese, Indian, American or other European citizens that, according to these people, global demand and inflation is down to just those in the UK with a mortgage or credit card!
So, the answer is clearly to take more money from those with mortgages, credit cards or other debts and give it to the rich ponces that already have more money than they know what to do with (5 million pound bonus anyone?)
Now the other half of the inflation equation - supply - is completely ignored by these two. When demand increases and supply increase price doesn't change. But to increase supply you have to invest in more plant, more machinery, more people to increase business. BUT if you increase interest rates, or even if you just threaten you might, business can no longer afford to invest in increasing production - especially smaller business. So raising interest rates stops investment, stops the increase in supply, inevitably plant, designs, machinery and people wear out and supply will ultimately drop (as it has in England - try buying a British car these days to see how far our supply capability has fallen).... ultimately then raising UK interest rates has the following effects:
a) No appreciable change in global demand, so no slowing down in global inflation in commodotie products
b) An appreciable cut in investment by British industry leading to a slow down in manufacturing, exports, employment and the destruction of yet more of our potential future, reducing supply and boosting inflation.
c) An appreciable captial movement from those who can't afford to live without borrowing to those already rolling in it.
I expect the BofE interest rates to shift up appreciably during the next few months and the recession in the UK to deepen hugely, unemployment to climb from its present (ONS figures) 30%, tax rates to rise to pay for the benefits required for the newly unemployed, further public service cuts, further unemployment, further price rises as the Chinese continue to make use of the fact that our manufacturing is shutting down totally............
In short further disaster.
Of course, even the threat of this is probably enough to start the problem - if you were a business would you borrow now when you think the debt will get far more expensive in the near future?
Pity we can't have some 'leaders' who can think beyond their next expenses fiddle or golf game.