It's all in the detail

Obama to spend more

Well to encourage people to spend. Saving now is the utmost concern for some – confidence is so low can anyone reasonably say that people should, in fact purchase like they did last year?

I don’t know the answer to that, but with more details coming out as to how the Obama administration is going to get the US economy back on track, the markets at least are happy.

But will there be any real sacrifices in what Obama said he would do and what he can actually do?

The tax cut for the middle-class is a must – no doubt about that one.

started working on crafting an economic recovery plan. Obama’s team also must figure out how best to allocate the rest of the $700 billion bailout that Congress passed in October.

Obama said Monday that he hopes the new Congress will begin work on an aggressive economic recovery plan when it convenes in January so his administration can “hit the ground running.”

An economic stimulus package is central to Obama’s plan. Obama on Monday declined to speculate how big the stimulus would need to be, saying, “We are going to do what’s required to jolt this economy back into shape.”

Estimates for how much might be spent on a multiple-year stimulus package range as high as $500 billion to $700 billion. At the center of the plan are investments in the nation’s roads, bridges, schools and alternative-energy infrastructure. Obama has said his plan will lead to the creation of 2.5 million jobs.

That is far from what is happening in Britain.

There it is a matter of not allowing inflation to drop below 2% or there about – and telling the banks that they lend or be nationalised – taking into account the amount of tax payers cash they have received recently.

He said the government “may have to intervene directly” to ensure the banks start to increase their lending.

Mr King added that nationalising banks could not be ruled out.

Lower inflation

Turning his attention to inflation, Mr King warned that the risk it could fall below 2% in the medium term has “increased significantly” in recent weeks.

He said this was due to the sharp fall in global oil and commodity prices, and declining consumer demand.

UK inflation fell to 4.5% from 5.2% in October. The government wants inflation to be as close as possible to 2%.

This Bank of England targets the Consumer Price Index, which excludes the effects of mortgage interest payments.

“We will take whatever action is necessary to ensure that inflation is close to target in the medium term,” Mr King said.

UK interest rates are currently at 3% following a 1.5 percentage point cut at the start of this month, and many economists are forecasting a further cut in interest rates in December.

While Mr King would not directly comment on future rate movements, analysts said he did little to cool expectations of a further reduction next month.

Erm, wow!

Add to FacebookAdd to DiggAdd to Del.icio.usAdd to StumbleuponAdd to RedditAdd to BlinklistAdd to Ma.gnoliaAdd to TechnoratiAdd to FurlAdd to Newsvine

Advertisements

About Bolshy

Blogging in the ether to see if that elusive literary agent or publisher wants some new talent.
This entry was posted in Blogroll, Comment, Politics, Socialism, Sociology and tagged , , , . Bookmark the permalink.

0 Responses to It's all in the detail

  1. Yellowbird1 says:

    Stores want people to spend money that they don’t have but I notice that are doing a bait and switch. They just push the price of something up and then say it is a sale at actually the same price it originally was. If they really want people to start spending they have really put the prices w a y down. This is why no one is purchasing. The prices are still too high. Say something is $100. Put it down to $40. Now that is a sale!!! But we will not be fooled.

  2. Yellowbird1 says:

    Stores want people to spend money that they don’t have but I notice that they are doing a bait and switch. They just push the price of something up and then say it is a sale at actually the same price it originally was. If they really want people to start spending they have to really put the prices w a y down. This is why no one is purchasing. The items are still too high. Say something is $100. Put it down to $40. Now that is a sale!!! But we will not be fooled.

By all means, leave your 2 bobs worth

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s