Why are we in this mess?
We are in the current economic situation because of excessive lending over the last few years.
What is the government's preferred solution? To drop interest rates to ridiculously low levels and to force the banks to continue to lend at unsustainable levels. That's about as sensible as offering a drug addict cheaper heroin and forcing the dealers to supply as much as the addict wants.
Who is being punished?
Savers!! The people who are prudently saving for their retirement or living off their savings.
The problem is not the cost of lending. it is the availability of lending. Ask yourself a simple question "Who provides the funds to lenders?" - the answer is simple, SAVERS. So why make it less attractive to savers at the very time you need them?
Next - 0% Interest Rates?
The spectre of ZERO% interest rates is looming and that is not funny.
Its time the down trodden saver did something. To date we've had no power but this website aims to change this.
| Target Average Inflation |
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The Bank of England should target inflation as an average over time The Bank of England recently allowed inflation to get close to 5% - well above its target of 2%. And yet, the moment this rate starts to fall it starts to panic about undershooting its target by less that it just overshot! We would argue that if the Bank of England lets inflation average 2% over the target rate for 1 year then it should set a new target for the following 2 years of 1% to compensate. In other words it should target the running average of inflation over a 5 year period, say. This means that everyone knows where they stand and savers, borrowers, business and government all know where they stand over the long term. |