High exchange rates and low inflation…’unhealthy’ for EU


From the Telegraph:

The European Central Bank has expressed alarm over the surging euro, accusing the Trump administration of driving down the dollar to gain trade advantage in breach of global accords.

Minutes from the ECB’s policy meeting in January flagged concerns that the overly-strong exchange rate had become unhealthy and “required monitoring”, with doves on the Governing Council clearly worried that the eurozone is still caught in a low inflation trap with no safety buffer against fresh deflation shocks….They are desperate to see inflation rising….’


The BBC’s narrative is that the ‘plunging Pound’ #duetobrexit and so-called high inflation is bad for our economy….wonder how they will spin the EU wanting lower exchnage rates and higher inflation.  Note the BBC also always tells us we are suffering terribly from a wage squeeze…with that ‘high’ inflation and low wage rises…and yet always fails to mention the hugely raised tax allowance, the minimum wage/living wage increase, screamingly low interest rates for a decade, and more free child-care.   Hardly getting the full picture from the BBC…almost as if they had an agenda to push about the economy.



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8 Responses to High exchange rates and low inflation…’unhealthy’ for EU

  1. Fedup2 says:

    I suppose the likelihood of a working majority Corbyn Mcdonald Government is strongly attached to the timing of the next recession – will it be in the next 3 years and how bad will it be .

    Do you notice the absence of certain terms which were used all the time – once upon a time – double dip – negative equity – recall them yourself .

    In a way many parts of Blighty are booming but don’t realise it. Al beeb would never accept this and point out issues like food banks and alleged relative poverty but with oil , int rates and taxes being relatively low al beeb will never talk positive


    • Eddy Booth says:

      ”In a way many parts of Blighty are booming but don’t realise it”
      Booming for the haves.
      Nothing new there, for the last 10 years, since the 2008 banking crisis well off people have scratched their heads at the term austerity.
      What used to distinguish UK from 3rd world country is we at least tried to share out the wealth.
      No longer, now the poor suffer the government cuts and increased rents from their super low interest policy, zero hours contracts,sanctions etc.
      There is still freeze, for a minimum two more years on welfare payments .


  2. JimS says:

    Was there ever a time when for the BBC a rising pound or a falling pound wasn’t bad?

    They play the same game with interest rates; “Savers lose out” or “Mortgage payers hammered”. Heads, we lose; Tails, the BBC wins.


  3. Fedup2 says:

    I watched a really tired documentary about Ikea al beeb put out recently . The effusive uncritical support for a foreign company ultimately taking profits out of Blighty contrasts with the institutional way al beeb either ignores British businesses or just looks to criticise them .

    The IKEA propaganda shows were embarrassing .
    I didn’t get beyond going to x4 speed .was awful


  4. Holly Selassie says:

    When are we going to grab all chances that the Chinese, Aussies, Americans and Poles are going to give us if we shaft the EU as the offshore trading paradise that will back the Greeks and Italians…and screw the EU compliant former nations into their coffins until they dump Islam and begin to be their own former selves once more?
    I love and trust America and Israel-I loath the EU and its quislings like Corbyn and his goon squad.
    Hoping some Tory will grab the baby reins off May and give us a Brexit that will outrage the lefties and cause Soubry to sink back to her bottle.
    No such thing as a half victory in any existential war, not one that we chose either. They want war-well, give it to to them!


  5. Annunaki says:

    “I love and trust America” well I would not go that far but, having experience in customer service we still have not progressed too far from Fawlty Towers,in 30 years, just listen to any local radio or TV consumer programme to realise that


  6. Annunaki says:

    I thought so the quickest disappearing headline in BBC history there it is now its gone: no more asian rape gangs…………………..


  7. Annunaki says:

    If there was any genuine moral outrage over the treatment of women within the BBC the story of asian rape gangs would be number one but it has now been, forgive the phrase, whitewashed, and will disappear forever, SHAME ON YOU BBC SHAME ON YOU FOR ALL THOSE RUINED LIVES