Inflation returns to Ireland officially

[Radix]

The return of inflation has to be good news. Now the banks can lend again to help fund the increased cost of goods. Those selling the goods will lodge the improving returns back into the banks who can then use this as a legitimate reason to lend more money.... and hey happy days...lets get the old tiger roaring again. Let there be some control though from the great Regulator in the sky.......

[Aindriu]

The return of inflation has to be good news. Now the banks can lend again to help fund the increased cost of goods. Those selling the goods will lodge the improving returns back into the banks who can then use this as a legitimate reason to lend more money.... and hey happy days...lets get the old tiger roaring again. Let there be some control though from the great Regulator in the sky.......

Ye are being sarcastic right? Cos if not you need help urgently

[MPB]

So as usual the Govt/Bank sectors (same thing now really) are the primary drivers of increased costs in the Irish economy.

This has been going on for years (decades!) and nobody wants to face up to it.

Low Stable Prices Good - but that, in Ireland, is considered Heresy.

+1.

I am beginning to believe we would be better off without a Govt altogether.

Utterly useless.

Service provision decreasing yet costs rising.....unbelievable.

[Tony Liar]

This happens when money is printer from nowhere. Only to be expected.

[Squire Allworthy]

I have noticed that the london ftse is around 5450 today. this is around 500 points more than around 3 months ago(i know it dipped below 5000 in last 3 months) So the FTSE is 10% up in last 3 months or so!

I am not sure how relevant this is to this thread but i am too young to start my own thread.But i wonder how these figures compare to the irish exchange!

Visit the Irish stock exchange site Irish Stock Exchange


For inflation keep an eye on futures, money supply and threats to availability of commodities.

[Squire Allworthy]

another double post sorry.

[the_rebubblican]

Driven largely by state and semi-state entities, Constantin Gurdgiev highlighted this last month.

True Economics: Economics 12/8/10: Irish July CPI: Deflation is over, for the State sectors

The case of Shannon airport raising landing charges by 30% sums the attitude up. The sheltered sector of the economy (semi state, local authorities, government services) is going to crucify the economy in an attempt to maintain their way and cost of doing business.

ESB Poolbeg average wage 125k, ESB average wage 90k, CEO 750k. They are taking the p1ss....

[KingKane]

So presumably everybody who called for cuts in wages and social welfare on the grounds of deflation will now seek increases in peoples' income instead?

So you want wages and social welfare to fall to match the reductions that have already happened?

[Radix]

Ye are being sarcastic right? Cos if not you need help urgently

Am rolling a sarcastic tongue around in a truthful mouth Aindriu. Money systems are based around production and consumption.

Where we went wrong in this country and stateside was that we printed 'bubble money' money based on a false promise rather than actual (truthful) things.

This is what led to the collapse and is the inevitable outcome of any human system, since, well, people are human, not perfect.

This collapse heralds deflation, things fall in value. When recovery comes, things rise in value...inflation.

The note of caution I sounded was from the moral hazard perspective; as we gradually find 'value' again in our production/consumption system, will we this time ensure 'value' (values) find their way into the way we govern things, since as pointed out by others, does not financial bankruptcy stem in some way from moral bankruptcy?

Might start a thread on that one!

[Socratus O' Pericles]

Stagflation?