CyberTory Economics lesson

[Cyberman]

Rule 2: With Hindsight modify what you previously said

Rule 3: Debt fuelled booms can last forever if interest rates keep being lowered, there is an infinite supply of money. Interest rates should never be raised to control unsustainable borrowing

Rule 4: A debt laiden economy is a healthy economy

Debt fuelled booms only happen if you have New Lie in power. They created an unlimited supply of money to lend, and Gordon Brown instigated this scenario by his changing of bank regulation. No government in its right mind should ever do this, as history has shown. Lending should be closely tied to deposits, as I have stated on other threads, and if this rule is adhered to there will NOT be an infinite supply of money.

[Bagpuss]

Rule 2: With Hindsight modify what you previously said

Rule 3: Debt fuelled booms can last forever if interest rates keep being lowered, there is an infinite supply of money. Interest rates should never be raised to control unsustainable borrowing

Rule 4: A debt laiden economy is a healthy economy

[BrilloPad]

At times of impending recession, even when inflation is high, of course interest rates should be lowered. Unfortunatey we left it too late and were overconcerned with inflation which anybody with commonsense could see was going to naturally fall anyway, due to that recession.
Ideally, taxes should also be lowered, but HMG have put us so much into debt that it was not a viable option. Australia had a budget surplus of 20 billion dollars that it handed out to its needy people last month. If only we had a Tory government, we could have been in a position to do likewise!!

That would be the bankers?

[Cyberman]

A new economic theory that goes against conventional ecomomic laws.

Rule 1: In times of Inflation and house market bubbles, interest rates should be lowered.

At times of impending recession, even when inflation is high, of course interest rates should be lowered. Unfortunatey we left it too late and were overconcerned with inflation which anybody with commonsense could see was going to naturally fall anyway, due to that recession.
Ideally, taxes should also be lowered, but HMG have put us so much into debt that it was not a viable option. Australia had a budget surplus of 20 billion dollars that it handed out to its needy people last month. If only we had a Tory government, we could have been in a position to do likewise!!

[Bagpuss]

A new economic theory that goes against conventional ecomomic laws.

Rule 1: In times of Inflation and house market bubbles, interest rates should be lowered.