How do you prolong a recession and make it into a Great Depression? Just follow the policies of the Bank of England and Treasury. Raising interest rates are not good for business or the consumer, plus this tactic will not decrease inflation, but increase it in the long run.
Ladies and gentlemen, we are at war. The mantle of war is unpredictable, it is a global problem and not domestic, as the idiots who seem to think up policy do not realise. Whatever they do domestically is tweak things while they ignore the bigger picture.
If increasing pain upon homeowners and renters as well as businesses is the plan, then the misguided fools in charge will keep increasing interest rates.
More business owners will go bankrupt, and there will be an increase in mortgage arrears. Landlords will be forced to increase rents to service increased mortgage payments.
We can thus expect mass defaults on loans, thus causing an avalanche domino effect on the already faltering economy. Compounding this financial Armageddon, inflation will continue to rise simply because the cause is a global, external issue and not domestic.
Furthermore, the government taking out vast loans of billions of pounds to artificially increase wages and cushion skyrocketing consumer/business energy costs is a short term plaster that will impoverish Britain’s economy further as well as increase inflation because of increased consumer spending.
Reference 2008, then add multiple percentage points of misery and the increasing of interest rates is an assured recipe for a prolonged Great Depression.
