The devil’s advocate in me raises the argument that higher interest rates actually trigger a ‘chasing the tail’ response rather than simply curbing inflationary pressures.
Rising mortgage rates increase household costs and thus cause inflation. Bank deposit rates will also rise, allowing more spending and offsetting the restraint on discretionary spending from higher borrowing costs.
Workers will then seek higher wages to compensate for rising mortgages, but the appreciation of the currency as a result of rising interest rates will hurt export markets, encourage cheaper imports, It will adversely affect trade balance statistics.
Rising interest rates therefore really set off a perfect storm for the Irish economy, especially for low-income citizens, with even tougher times ahead.
Jimmy Cummins, West Busselton, Western Australia
A mispronunciation leaves John with an egg on his face.
I respected John S Doyle of RTÉ Radio 1 One’s Paper content It was a mistake to pronounce the name of the beautiful west Limerick village of Temple Grantin as Temple Egg Lantern.
It’s not “sweet briar”, it’s Temple Grantin, “little Glen’s church”.
Oliver McGrane, Rathfarnham, Dublin 16
If Ukraine falls, it will become an EU member state next.
By invading Ukraine, it should be perfectly clear that Russia has decided not to be a peaceful European neighbor and will at some point in the future go to war against EU member states. Hmm.
With Russia reportedly buying millions of missiles from North Korea, clearly the West must retaliate by providing the Ukrainian people with means of self-defense.
If Ukraine falls, the EU member states must be next.
In order to protect ourselves from Russia, the West must not only tighten sanctions against Russia, but never again purchase limited amounts of oil and gas from this warmonger.
Anthony McGeough, Kingswood Heights, Dublin 24
EU response to crisis must freeze all energy bills
Your editorial costs money (“It’s unfair to tell people to use less the more they pay”, ireland independenceSeptember 8).
Ursula von der Leyen reminds us all that “we face an extraordinary situation because Russia is an unreliable supplier and manipulator of the energy market.” I think that’s old news.
The reality is that since the war started in Ukraine, Russia has cut its gas supply and is getting more revenue from European countries.
Putin is also relying on higher prices to continue to hit Europeans hard, especially during winter.
He is trying to achieve his unrest, and if the EU does not act decisively, he may well achieve his goal.
The EU now needs such a response to the Covid-19 pandemic and needs to focus on achieving one goal: freezing all energy bills.
Similarly, the Irish government should do the same without taking any half-measures so that it definitely flows from the budget.
Solutions such as mandatory power cuts during peak hours, as proposed by Ms. von der Leyen, do not cut mustard, they only irritate and alienate Europeans.
Aidan Roddy, Cabintealey, Dublin 18
Pensioners are not parasites for retirement at 66
Certain segments of society seem to feed the state (“Parasite Pensioners Have Paid Dues in the Past”, Frank Coughlan, ireland independence, September 6).
Pensioners and soon-to-be pensioners quit their jobs at age 66, when they should have worked a few more years, and are perceived as parasites by younger generations, he says. How insulting is this?
Pensioners are seen as selfish, elitist and parasitic about seeking help with the upcoming budget.
This is an offensive word, and it has been used for over 40 years to get up early in the morning to go to work, put a roof over your head, feed, clothe, shelter, educate your family and pay your taxes. blaming part of society over the years.
They helped make this country one of the richest in the world, but now they are worthless in their later years.
“Bread eaten is quickly forgotten” applies.
Tom Toy, Kroonakul, Ko Sligo
