Today’s (January 15, 2025) inflation fall shows why the interest rates hysteria was so silly, over the past week or so.
All of the numbers attached to inflation, economic growth and interest rates are entirely arbitrary – they are made up in the minds of people in suits who do not have your best interests at heart.
The suits at the Bank of England are murmuring about letting interest rates fall because of a surprise drop in inflation last month (let’s bear in mind), from 2.6 per cent to 2.5 per cent.
This is cost-price inflation (CPI), which does not include the prices of everything; therefore the figure provided is not really an accurate reflection of the UK economy.
But then – neither is the interest rate. The cost of borrowing money is, we’re told, increased or lowered in order to prevent businesses from accumulating debts they’re unlikely to be able to pay off during hard times, or encourage them to invest when profits are high. But the Bank of England wants to keep around three per cent of difference between the economic growth rate and the interest rate – because that makes money for bankers.
Buy Cruel Britannia in print here. Buy the Cruel Britannia ebook here. Or just click on the image!
There are checks and balances on this kind of behaviour: Rachel Reeves, as Chancellor, could order the Bank to drop interest rates to a more reasonable level that reflects the current situation, on the grounds that the current level is not in the national interest.
But she won’t, because she is afraid of the banks for some undisclosed reason.
And anyway, the fall in inflation seems to have rescued her, for the time being. The BBC is reporting that
borrowing costs fell back to last week’s levels and the pound rose slightly to stand at $1.22.
So the crisis of the last week is over – for the time being.
And nobody in a position to change the situation had to do anything at all.
That is the fact of the interest rate crisis of the last week: it wasn’t a crisis at all and was self-correcting.
And notice that the information that changed everything relates to the economic situation before anyone even started raising the alarm.
How utterly, contemptibly ridiculous.
And the worst of it is, if the figures for this month, or revised figures for a couple of months ago, come in at a different level, the same idiots who caused a panic last week will be kicking up dido again – because they think they’ll be able to make a bit of cash out of it, for themselves.
There should be a law against it.
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Inflation fall shows why the interest rates hysteria was so silly
Today’s (January 15, 2025) inflation fall shows why the interest rates hysteria was so silly, over the past week or so.
All of the numbers attached to inflation, economic growth and interest rates are entirely arbitrary – they are made up in the minds of people in suits who do not have your best interests at heart.
The suits at the Bank of England are murmuring about letting interest rates fall because of a surprise drop in inflation last month (let’s bear in mind), from 2.6 per cent to 2.5 per cent.
This is cost-price inflation (CPI), which does not include the prices of everything; therefore the figure provided is not really an accurate reflection of the UK economy.
But then – neither is the interest rate. The cost of borrowing money is, we’re told, increased or lowered in order to prevent businesses from accumulating debts they’re unlikely to be able to pay off during hard times, or encourage them to invest when profits are high. But the Bank of England wants to keep around three per cent of difference between the economic growth rate and the interest rate – because that makes money for bankers.
Buy Cruel Britannia in print here. Buy the Cruel Britannia ebook here. Or just click on the image!
There are checks and balances on this kind of behaviour: Rachel Reeves, as Chancellor, could order the Bank to drop interest rates to a more reasonable level that reflects the current situation, on the grounds that the current level is not in the national interest.
But she won’t, because she is afraid of the banks for some undisclosed reason.
And anyway, the fall in inflation seems to have rescued her, for the time being. The BBC is reporting that
So the crisis of the last week is over – for the time being.
And nobody in a position to change the situation had to do anything at all.
That is the fact of the interest rate crisis of the last week: it wasn’t a crisis at all and was self-correcting.
And notice that the information that changed everything relates to the economic situation before anyone even started raising the alarm.
How utterly, contemptibly ridiculous.
And the worst of it is, if the figures for this month, or revised figures for a couple of months ago, come in at a different level, the same idiots who caused a panic last week will be kicking up dido again – because they think they’ll be able to make a bit of cash out of it, for themselves.
There should be a law against it.
Vox Political needs your help!
If you want to support this site
(but don’t want to give your money to advertisers)
you can make a one-off donation here:
Be among the first to know what’s going on! Here are the ways to manage it:
1) Register with us by clicking on ‘Subscribe’ (bottom right of the home page). You can then receive notifications of every new article that is posted here.
2) Follow VP on Twitter @VoxPolitical
3) Like the Facebook page at https://www.facebook.com/VoxPolitical/
Join the Vox Political Facebook page.
4) You could even make Vox Political your homepage at http://voxpoliticalonline.com
5) Follow Vox Political writer Mike Sivier on BlueSky
6) Join the MeWe page at https://mewe.com/p-front/voxpolitical
7) Feel free to comment!
And do share with your family and friends – so they don’t miss out!
If you have appreciated this article, don’t forget to share it using the buttons at the bottom of this page. Politics is about everybody – so let’s try to get everybody involved!
Buy Vox Political books so we can continue
fighting for the facts.
Cruel Britannia is available
in either print or eBook format here:
The Livingstone Presumption is available
in either print or eBook format here:
Health Warning: Government! is now available
in either print or eBook format here:
The first collection, Strong Words and Hard Times,
is still available in either print or eBook format here:
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