No one will say this !
November 7th 2007 02:08
Hell why am I even saying it, the pessimist in me says few will listen and even fewer will change. But then I am the eternal optimist, I know one person out there will see the opportunity this idea provides and that makes it all worthwhile.
Interest rates rise for a number of reasons but most ecconomists will agree the basic one is Inflation.
Inflation for the common man and women is how much more we are paying for stuff - easy !
What makes inflation go up ?
If stuff is bought and there becomes less on the shelf then it is natural to think a shop might put the price up - still seems easy.
When we don't have any money then we can't spend it, (Credit cards are a short term solution but some day we do have to pay it back) Mrs Inflation goes to sleep watching the daytime soaps and Mr Interest Rates goes down to his shed.
If we have spare money and we spend it on stuff then it is likely Mrs Inflation will hear about it sooner or later. Mr Interest rates will decide we have too much spare money and decide to take some away from us.
Unfortunately for us commoners, this generally happens well after the memory of spare money has been dissolved by the seductive charms of the mid day sun.
So the cycle is complete, the reasoning easy to understand, I guess we must have a formula to satisfy the odd :
But thats not where it ends and no this isn't going to get any more technical !
They say what goes up must come down, its not always true but if Mrs Inflation gets too excited and Mr Interest Rates gets a fat bum there will be no money left to buy stuff>. The shop will then need to reduce prices to make sales and keep doing so until sufficient stuff is sold. Thats when we all get very depressed and it can take a while for us to regain our relaxed and comfortable outlook on things.
Politicians like to give us money because they think we like it, the reality for most people is that we don't like it at all, it would seem in fact the sooner we can get rid of it the better!
It doesn't matter which side of the fence you sit in politics the cycle affects you the same way, but will they tell you bluntly this is the case ? Of course not because we can't be to blame for the problem it must be the politicians !
The moral of this tail is STOP SPENDING THE MONEY HONEY ! its our own fault inflation goes up or down, we can take control we don't need to rely on the politicians !
Interest rates rise for a number of reasons but most ecconomists will agree the basic one is Inflation.
Inflation for the common man and women is how much more we are paying for stuff - easy !
What makes inflation go up ?
If stuff is bought and there becomes less on the shelf then it is natural to think a shop might put the price up - still seems easy.
When we don't have any money then we can't spend it, (Credit cards are a short term solution but some day we do have to pay it back) Mrs Inflation goes to sleep watching the daytime soaps and Mr Interest Rates goes down to his shed.
If we have spare money and we spend it on stuff then it is likely Mrs Inflation will hear about it sooner or later. Mr Interest rates will decide we have too much spare money and decide to take some away from us.
Unfortunately for us commoners, this generally happens well after the memory of spare money has been dissolved by the seductive charms of the mid day sun.
So the cycle is complete, the reasoning easy to understand, I guess we must have a formula to satisfy the odd :
Spend more = Inflation up = Interest rates up
But thats not where it ends and no this isn't going to get any more technical !
They say what goes up must come down, its not always true but if Mrs Inflation gets too excited and Mr Interest Rates gets a fat bum there will be no money left to buy stuff>. The shop will then need to reduce prices to make sales and keep doing so until sufficient stuff is sold. Thats when we all get very depressed and it can take a while for us to regain our relaxed and comfortable outlook on things.
Politicians like to give us money because they think we like it, the reality for most people is that we don't like it at all, it would seem in fact the sooner we can get rid of it the better!
It doesn't matter which side of the fence you sit in politics the cycle affects you the same way, but will they tell you bluntly this is the case ? Of course not because we can't be to blame for the problem it must be the politicians !
The moral of this tail is STOP SPENDING THE MONEY HONEY ! its our own fault inflation goes up or down, we can take control we don't need to rely on the politicians !
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