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brown the clown is lying about interest rates
What the Clown is actually doing is feeding cheap money, via the
Bank of England, to the UK banks in order to bail them out. Thus, the mess in the UK economy
is being visited, as ever, upon the population in even more inflation.
The banks, as usual, are acting as middleman to cover up foolish government
‘policies’.
That is, the rate at which the Bank of England is
handing out money to the lending houses is going down, while the rate
the lending houses are charging is going up.
“Tue Apr 8, 2008 2:22pm BST
Interest rates can fall because inflation is low, Prime Minister Gordon
Brown said on Tuesday, two days before a Bank of England interest rate
decision and despite forecasts for higher inflation this year.
“The government does not have the power to change interest rates,
as Brown gave up that responsibility to the Bank of England in 1997
when he was Chancellor.
“However, pressure is growing on policymakers to shore up the
economy in the wake of the credit crunch.
“Because we've got low inflation we can cut interest rates,"
Brown said in an interview with the BBC.”
—
“Fears are now rife in the market that the minimum five per cent
deposit could grow to ten or even fifteen per cent - as mortgages become
rationed as banks are hit by the high cost of inter-bank lending, despite
the Bank of England dropping interest rates.” [Quoted from reuters.com]
Meanwhile, the interest charged by banks is rising
rapidly:
“Tuesday, 08 Apr 2008 11:38
Abbey is dropping the last 100 per cent mortgage on the market following
the parade of lenders to up interest rates or cut mortgage deals.
“Mortgages covering the full value of a property started to disappear
from the market in February and all deals are now off - meaning first-time
buyers need to raise a deposit of at least five per cent to get on the
property ladder.”
—
“ mform.co.uk research also reveals first-time buyers are not
only having to raise larger deposits and face higher interest rates,
they are also seeing increasing fees.
“Fees at the biggest five lenders have increased by 35 per cent
in the last year from £637 to £857.
“The rate on a first-time buyer mortgage has now increased from
five per cent last year to 5.8 per cent now - putting average annual
repayments up by £920.” [Quoted from myfinances.co.uk]
Repossessions are widely forecast to grow and house prices
to fall. Even under the false figures Gordon Brown and his Chancellor
Darling are issuing, inflation is expected to grow.
It has taken the UK government ten years of profligacy,
but we are now re-entering the usual consequences of socialist ‘New’
Labour ‘policies’.
The real rate of inflation has been running at over
10% in the UK for several years now.
related
material
sunday afternoon - panic in nu-labour treasury chicken coop
bubbles,
debt, borrowing and inflation in the uk
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