This is not the first time I have despaired of trying to make some sense of HMG's response to a perfectly reasonable question. Here is
one example. Lord Stoddart of Swindon asked HMG, in the light of
recent comments by the Deputy Governor of the Bank of England that made a number of us raise our eyebrows:
what is their assessment of comments by the Deputy Governor of the Bank of England that savers should increase their levels of spending in light of the policy of encouraging people to save for their retirement.
On behalf of HMG Lord Sassoon replied:
The Government are committed to reinvigorating private pension saving. In the short term it is also important that household spending supports demand and recovery in the economy. This contribution to stronger national income now will in turn contribute to stronger saving in the future.
As this was a Written Answer, I cannot ask whether the man is listening to himself but did he not even check what sort of gibberish his civil servants had written?
He seems to be saying "Savers spend your savings now, we need the taxes(national income)", the idea idea being that broke savers will start saving harder ??
ReplyDeleteThe Dep. Guv. however seems to be saying "Spend what you've got" with the implication that inflation will burn it if you don't.
So the message seems to be that the government have no intention of protecting/respecting savers and they intend to let inflation rage to try and reduce govt. borrowings.
The logic for those with savings seems to be, buy property now with as much mortgage as you can handle and watch inflation dispose of the mtg.
Yes, maybe. It is as good an explanation as any other. Of course, we don't know what will happen if people will not be able to pay their mortgage. Oh wait .... I think we might know.
ReplyDeleteOn the theme of crap answers to questions asked, this one via Bishop Hill will take some beating:
ReplyDeletehttp://bishophill.squarespace.com/blog/2010/10/21/lord-marland-shames-parliament.html#comments
(or hansard: http://www.publications.parliament.uk/pa/ld201011/ldhansrd/text/101020-0001.htm#10102041000306)