QUESTION.
The worst consequence of this mortgage holiday is via the underlying doubling of rates that is required to underpin and sustain it.
The planned trebling of debt and trebling of interest, imposes funding needs that lock double digit rate increases into place - for at least ten years.
The council estimates reveal underlying rate increases, of the order of 12.65%, 13.29% and 11.06% - underpinning this mortgage holiday.
However the government has repeatedly announced that double digit rate increases are wholly unacceptable. The government has also loudly signalled its intention to introduce an inflation based rates cap.
When that rates cap is imposed, the double digit rate increases, already locked into place, will not be able to be realised, and will instantly become a deficit.
Those double digit rate increases will turn into minus or negative rate increases, and will be deficit funded.
What expert advice or report has this lay council sought or received on the economic and financial consequences, of having double digit, deficit rates funding, locked into place, for at least ten years?
About Me
- pinocchio
- This blogspot is born out of a deep democratic concern about the continual political spin and the outright manipulation and suppression of information by local government and local media. In my view that rampant disinformation has become so extreme that it can only be considered grossly deceptive. This blogspot attempts to provide some balancing transparency to that situation. Hopefully it might even help keep the "buggers" honest.