Interest rates

Rising interest rates will create a perfect economic storm

The devil’s advocate in me raises the argument that interest rate hikes simply don’t dampen inflationary pressures, but in fact cause a tail-hunting response.

increases in mortgage rates increase household spending and are therefore inflationary. Bank deposit rates are also rising, allowing for higher spending and offsetting the benefits of dampening discretionary spending due to higher borrowing costs.

Workers then seek wage increases to compensate for mortgage increases, while the increased value of our currency following rate increases hurts export markets and encourages cheaper imports, negatively affecting our statistics. of trade balance.

So rising interest rates actually create the perfect storm for a tougher time ahead for the Irish economy, and particularly for low-income citizens.

Jimmy Cummins, West Busselton, Western Australia

Mispronunciation leaves John with an egg on his face

I fear the estimable John S Doyle on RTÉ Radio 1 One’s What he says in the papers was wrong to pronounce the name of the beautiful village of Templeglantine in West Limerick as Temple-egg-lantyne.

It’s Temple-glan-tin, “the church of the small valley”, not “the dog rose”.

Oliver McGrane, Rathfarnham, Dublin 16

If Ukraine falls, EU member states will be next

It must be perfectly clear that Russia, by invading Ukraine, decided that it did not want to be a peaceful neighbor of Europe and decided to wage war on EU Member States at some point in the future.

Russia is reported to be buying millions of missiles from North Korea, so it is obvious that the West must retaliate by providing the Ukrainian people with the means to protect themselves.

If Ukraine falls, the EU member states will surely be next.

If we are to protect ourselves from Russia, the West must not only increase sanctions against it, but never again buy even limited oil or gas from this hawkish state.

Anthony McGeough, Kingswood Heights, Dublin 24

The EU’s response to the crisis must be to freeze all energy bills

Your editorial is about the money (“It’s unfair to tell people to use less because they pay more”, Irish IndependentSeptember 8).

Ursula von der Leyen reminds everyone that “we are facing an extraordinary situation because Russia is an unreliable supplier and manipulates our energy markets”. I think this is old news.

The reality is that Russia has earned more revenue from European countries by supplying less gas since the start of the war in Ukraine.

Putin is also counting on rising prices to continue to hit Europeans hard, especially in winter.

It seeks to cause trouble and may very well achieve its goal if the EU does not act decisively.

The EU now needs such a response to the Covid-19 pandemic, and only needs to focus on achieving one goal: freezing all energy bills.

Likewise, the Irish government should do the same, without half measures, as will no doubt follow from the budget.

The solutions proposed by Ms Von der Leyen, such as a mandatory power cut during peak hours, will not cut the mustard and will only serve to frustrate and alienate Europeans.

Aidan Roddy, Cabinteely, Dublin 18

Retirees are not parasites to retire at 66

It seems that a certain part of society feeds on the state (“Parasitic pensioners have paid their dues in the past”, Frank Coughlan, Irish Independent, September 6).

He says retirees and future retirees are seen by the younger generation as parasites for quitting work at 66 when they should be working for a few more years. How insulting is that?

Pensioners are seen as selfish, elitist and parasitic for asking for help in the upcoming budget.

It is offensive language, which castigates a part of society that gets up early in the morning to go to work, put a roof over its head, feed, clothe, shelter and educate its family and pay its taxes, for more than 40 year.

They helped make this country one of the richest in the world, and now, in the twilight of their lives, they are no longer valued.

“Eaten bread is quickly forgotten” applies.

Tom Towey, Cloonacool, Co Sligo