Category Archives: Economy
Why have we stopped questioning inflation?
As I stand here petrol nozzle in hand watching my children’s inheritance evaporate away like the fumes of my tank, I can’t help but wonder what’s changed over the past few years to have made people so accepting of extortionate inflation. I reach for a small bottle of Sprite with the price ‘£1’ splashed all over the label like it’s a multi-buy, like it’s a good deal. It may be a good deal by today’s standards, but it’s by no means a good deal compared to the price 10 years ago.
Lobbying by banks against new rules condemned by Bank of England
In order to help prevent a repeat of the mass bailout of struggling banks in the UK, new legislation is set to be brought in by the Bank of England by the end of the year. Deputy Governor of the Bank Paul Tucker, who has been given financial responsibility, is one of a number of people who believe that new rules on liquidity need to be enforced as soon as possible.
How Do More Than a Billion People Live on a Dollar a Day?
It is hard to get exact figures on global poverty but it is widely accepted that in the world there are currently well over a billion people who live on a dollar a day or less. In fact, 80% of the planet’s population is said to survive on less than $10 a day.
Just reading the figures on global poverty it is impossible to grasp the scale of the problem. Travelling round some of the Earth’s poorest spots – Africa, Asia, South America – gives you a better idea of what life is like on a dollar a day. If you are used to a comfortable lifestyle in a developed country then it is an eye opener to see how people manage to live on so little money. So how do they do this and what kind of problems does it lead to?
How’s Your Economy?
A little while ago on Money Bulldog we wrote a post about the rising cost of living. That post focused on one question ‘At what point will you ask for a pay rise?’ We’ve all seen the cost of things like fuel, utilities and food rise drastically in recent years, in fact according this BBC article, the cost of unleaded petrol has risen by 54% between 2008 and 2013. In addition to all of these price increases, a recent study from the Institute of Fiscal Studies (IFS) shows that during the current economic downturn, not only have prices been rising but wages have also been falling in real terms more than ever before.
Who Holds the Stronger Hand, Cyprus or the EU?
As I write this post a truly do or die meeting is taking place in Brussels to decide the financial fate of Cyprus and also its place within the Eurozone. With the rejection by Cypriot ministers of the initial bailout package (with much duress from the Cypriot people) and the farcical events that followed of bank withdrawal limitations and the return of Euro fear on the financial markets you have to wonder who really holds the stronger hand in this poker game between Cyprus and the EU?
At the beginning of the week after the Cypriot parliament rejected the terms of an initial bailout deal which, as you will likely know by now, included a levy on bank deposits of not only the savings of the financially well off but also the accounts of ordinary savers, it seemed that Cyprus had heroically stood up to the authorities in Brussels and retained their national pride. At that time it also seemed as though Cyprus had other options on the table. The government of Cyprus immediately went to the Russians to attempt to lure in some investment but to no avail. Then it appeared that other institutions in Cyprus might be willing to offer up the 6 Billion Euros that Cyprus so desperately needed, but again nothing conclusive was able to be finalised. All these efforts are now being put before EU ministers in last ditch talks to save the Cypriot economy but does Cyprus have anything to offer or will the size of its tiny economy ultimately make it dispensable to the Eurozone Project?
