Comments on: Doves, hawks and dodos http://www.investmentandbusinessnews.co.uk/inflation/doves-hawks-dodos/ Irreverent, punchy and thought-provoking Wed, 02 Mar 2011 18:48:13 +0000 hourly 1 http://wordpress.org/?v=3.1 By: Colin Blackman http://www.investmentandbusinessnews.co.uk/inflation/doves-hawks-dodos/comment-page-1/#comment-559 Colin Blackman Wed, 18 Jun 2008 22:00:44 +0000 http://defaqtoblog.com/iabn/2008/06/18/doves-hawks-dodos/#comment-559 I have no problem with the conclusion but there is a fault in the argument. As has been mentioned several times in previous articles, the Chinese are savers not spenders. The "excessive demand from the far east" is to primarily to make goods for export to the US and Europe. The demand still comes from the UK but now it is indirect so it is less obvious. I have no problem with the conclusion but there is a fault in the argument.

As has been mentioned several times in previous articles, the Chinese are savers not spenders. The “excessive demand from the far east” is to primarily to make goods for export to the US and Europe.

The demand still comes from the UK but now it is indirect so it is less obvious.

]]> By: Andrew Harwood http://www.investmentandbusinessnews.co.uk/inflation/doves-hawks-dodos/comment-page-1/#comment-557 Andrew Harwood Wed, 18 Jun 2008 11:56:31 +0000 http://defaqtoblog.com/iabn/2008/06/18/doves-hawks-dodos/#comment-557 Interest rate rises are unlikely to rectify our very precarious position because the route of the inflationary problem is excessive demand from the far east and not from the UK. Interest rates should be kept low or else we are likely to tip strugglers with debt over the edge and that will cause more economic problems than it will solve. Recession must be left to run its course and the pain cannot be avoided. Weak currencies are caused by the performance of one country relative to others. If we take on too much National debt and experience negative growth then our currency should be allowed to fall especially if we print more sterling. The only solution to this problem is to spend less and gradually those that survive will start to pay off their excessive debt until it becomes once more manageable. Interest rate rises are unlikely to rectify our very precarious position because the route of the inflationary problem is excessive demand from the far east and not from the UK. Interest rates should be kept low or else we are likely to tip strugglers with debt over the edge and that will cause more economic problems than it will solve.

Recession must be left to run its course and the pain cannot be avoided. Weak currencies are caused by the performance of one country relative to others. If we take on too much National debt and experience negative growth then our currency should be allowed to fall especially if we print more sterling.

The only solution to this problem is to spend less and gradually those that survive will start to pay off their excessive debt until it becomes once more manageable.

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