Since when is the Economy in Deflation after 1 month's drop in the Inflation rate? Hello, hello, are there any Economists out there?
Currently, this is Disinflation. Stop the panic!
There is good news in this reversal. Because of the drop in Petrol prices, motorists have more money to spend on other consumer goods. Fruit prices are down, as are clothing prices. Since when has this been bad news. The drop in the exchange rate is good news for Exporters. Our exports are therefore cheaper for international buyers.
As usual, the downside the Media is promoting is purely negative speculation and is damaging of itself to the Economy, because to the majority of consumers, who have less training in Economics than the Media - this is an apparent tragedy. Bulldust!
Now the Media is standing in for the Reserve Bank and is promoting a rate decrease. Is this because many of those employees of the media, may have overblown mortgages? Dropping Interest Rates any further - will only encourage more consumers to buy more houses they will not be able to afford, when interest rates increase.
As far as I can determine, this reduction in Inflation, which is already low, has given the consumer more spending money. How bloody tragic. It's how they spend or don't spend, this non-wage increase, which will set the stage.
1 comment:
Cannabis campaigner and best-selling author, the late Peter McWilliams wrote: "The news media are, for the most part, the bringers of bad news... and it's not entirely the media's fault, bad news gets higher ratings and sells more papers than good news."
Schadenfreude, despite the linguistic origin of the word, is not solely a German cultural characteristic.
Post a Comment