Comments on: More troubles on the markets http://www.johnredwoodsdiary.com/2007/08/16/more-troubles-on-the-markets/ Conservative Party Member of Parliament for Wokingham Sat, 11 Oct 2008 09:27:30 +0000 http://wordpress.org/?v=2.6.2 By: Tony Makara http://www.johnredwoodsdiary.com/2007/08/16/more-troubles-on-the-markets/#comment-4948 Tony Makara Fri, 17 Aug 2007 20:43:58 +0000 http://www.johnredwoodsdiary.com/?p=419#comment-4948 Inflation is going to become a major factor in the UK economy due to Gordon Brown's debt fuelled growth. The massive volumes of debt in the UK are carrying interest, which is a demand for more money than already exists. This creates an inflationary pressure. Currently the strength of the pound is bailing out Gordon Brown. However once sterling takes a sustained dive expect to see inflation take off. The problem with debt driven inflation is that raising interest rates will not bring inflation in check because increasing interest will increase the debt and will create a furthe demand for money that doesn't already exist. Inflation is going to become a major factor in the UK economy due to Gordon Brown’s debt fuelled growth. The massive volumes of debt in the UK are carrying interest, which is a demand for more money than already exists. This creates an inflationary pressure. Currently the strength of the pound is bailing out Gordon Brown. However once sterling takes a sustained dive expect to see inflation take off. The problem with debt driven inflation is that raising interest rates will not bring inflation in check because increasing interest will increase the debt and will create a furthe demand for money that doesn’t already exist.

]]> By: Steven_L http://www.johnredwoodsdiary.com/2007/08/16/more-troubles-on-the-markets/#comment-4923 Steven_L Thu, 16 Aug 2007 21:32:24 +0000 http://www.johnredwoodsdiary.com/?p=419#comment-4923 How far can 'confidence' go towards building unsustainable speculative bubbles? reply: If there is confidence a bubble is not a bubble, it is just high spirits. How far can ‘confidence’ go towards building unsustainable speculative bubbles?

reply: If there is confidence a bubble is not a bubble, it is just high spirits.

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