Amidst fear or rampant deflation the world's bankers are cutting interest rates to zilch and killing my income in the process.

After Brown cut the UK VAT rate by 2.5% I wrote to the UK Office for Statistics

Office for National Statistics | Swyddfa Ystadegau Gwladol

Government Buildings | Adeiladau'r Llywodraeth

Cardiff Road | Heol Caerdydd

Newport/Casnewydd

NP10 8XG

asking how this would affect the inflation figures

"I am wondering how the drop in VAT by 2.5% will show up in the inflation figures for December. Will it result in a corresponding 2.5% drop in prices, or will a fiddle factor be applies to remove the effect of the VAT reduction?"

Well here is the reply.

"Yes, the temporary reduction in VAT to 15% will have an effect on next week's publication of the CPI/RPI. However, please note that a VAT reduction of 2.5% does not mean that the price of an item itself drops by 2.5% - the overall effect is around 2.1%.

Rather than apply a wholesale 'fix' to our collected prices for December, we have instead taken measures to check whether retailers were actually passing on the VAT reduction and, if they were, whether they were displaying the adjusted price or whether the VAT reduction was applied at the till. This work has ensured that next week's figures will be as accurate as possible."

IMO this confirms what I thought, the whole idea of economic policies based on some conjured up and unrealistic inflation rate figure manipulated to justify the politicians' decisions is all a dam_n joke. Who took house prices out of the inflation rate to keep interest rates and inflation related increases down? Brown. Who has now created a price deflation of a significant amount? Brown.

It is now increasingly obvious that the UK economic policies are a joke based on a joke. Time to join the Euro. Not the UK, but me personally... The Germans will keep things afloat there, even at the cost of a few falling by the wayside due to the profligate populations.

Not so great in USA either

Today stats for foreclosures just announced on NBC

1 in 54 homes are in foreclosure now.

That is up 81% from 2007

Also up 225% from 2006

Seems the bailout is not bailing out real folks.

They are just given bandaids for gaping wounds

Not so great in USA either

Today stats for foreclosures just announced on NBC

1 in 54 homes are in foreclosure now.

That is up 81% from 2007

Also up 225% from 2006

Seems the bailout is not bailing out real folks.

They are just given bandaids for gaping wounds

So far all the billions of bail out cash has been sucked into the black hole otherwise known as the banking industry. I am amazed at how this is playing out, the governments chuck more money than they can afford to prop up the banks, the banks turn around and ask for more, and please take away all these nasty toxic assets we have too. Basically sterilising themselves and handing over the infectious waste.

At this point the governments should call a stop, and just nationalise the dam_n lot. At least some decent assets would end up with the governments and not just all the <deleted>.

Not so great in USA either

Today stats for foreclosures just announced on NBC

1 in 54 homes are in foreclosure now.

That is up 81% from 2007

Also up 225% from 2006

Seems the bailout is not bailing out real folks.

They are just given bandaids for gaping wounds

So far all the billions of bail out cash has been sucked into the black hole otherwise known as the banking industry. I am amazed at how this is playing out, the governments chuck more money than they can afford to prop up the banks, the banks turn around and ask for more, and please take away all these nasty toxic assets we have too. Basically sterilising themselves and handing over the infectious waste.

At this point the governments should call a stop, and just nationalise the dam_n lot. At least some decent assets would end up with the governments and not just all the <deleted>.

No kidding !

You know these guys will continue to throw $$$ everywhere but the right place.

If they actually bought up some the true bad local debt maybe we would be a little more inclined to pay the high taxes that are around the corner.

Instead I have a hunch that really most ot all of this money has actually left the USA

Of course we will never know as that was part of this bail...errrr TARP package

The fact that while we will pay for it we do not get to know exactly where it goes, who gets it or what they do with it.

Sounds like a fair deal to me............NOT!!!

Amidst fear or rampant deflation the world's bankers are cutting interest rates to zilch and killing my income in the process.

After Brown cut the UK VAT rate by 2.5% I wrote to the UK Office for Statistics

Office for National Statistics | Swyddfa Ystadegau Gwladol

Government Buildings | Adeiladau'r Llywodraeth

Cardiff Road | Heol Caerdydd

Newport/Casnewydd

NP10 8XG

asking how this would affect the inflation figures

"I am wondering how the drop in VAT by 2.5% will show up in the inflation figures for December. Will it result in a corresponding 2.5% drop in prices, or will a fiddle factor be applies to remove the effect of the VAT reduction?"

Well here is the reply.

"Yes, the temporary reduction in VAT to 15% will have an effect on next week's publication of the CPI/RPI. However, please note that a VAT reduction of 2.5% does not mean that the price of an item itself drops by 2.5% - the overall effect is around 2.1%.

Rather than apply a wholesale 'fix' to our collected prices for December, we have instead taken measures to check whether retailers were actually passing on the VAT reduction and, if they were, whether they were displaying the adjusted price or whether the VAT reduction was applied at the till. This work has ensured that next week's figures will be as accurate as possible."

IMO this confirms what I thought, the whole idea of economic policies based on some conjured up and unrealistic inflation rate figure manipulated to justify the politicians' decisions is all a dam_n joke. Who took house prices out of the inflation rate to keep interest rates and inflation related increases down? Brown. Who has now created a price deflation of a significant amount? Brown.

It is now increasingly obvious that the UK economic policies are a joke based on a joke. Time to join the Euro. Not the UK, but me personally... The Germans will keep things afloat there, even at the cost of a few falling by the wayside due to the profligate populations.

If Brown reversed his decision and added house values back into the index he could really massage the figures couldn't he. It would prove he has inflation licked!! but at the expense of homeowners and taxpayers. you are right the whole thing is a joke, no-one is considering the impact on income from savings. interest on savings goes down, people spend and invest less, confidence drops. then the circle starts again until we have full deflation. its only a matter of time. sit tight

Hey I just realized Brown is the same guy that sold 400 tons of your countries gold back in 1999 when prices were at their 20 year low yes?

Whats he still doing around?

Boy you folks are as bad as we are about keeping lousy folks around the political scene eh? Thank Goodness we have sent one idiot back to his village in Texas this week

the irony of most of these bailout companies operating offices in offshore tax havens

at some stage the general public will stop them taking the piss - maybe