The economy
Sir, — There are two alternatives to the oil supply. (a) The Western nations eliminate the supplier problem by force and distribute at a realistic price, (b) The Western nations form a trading bloc against the Arab suppliers where the 1972 comparative of say a lamb to a barrel of oil is reinstated. If they do not supply oil to this trading bloc — they starve. The in-
flation-recession syndrome is affecting businesses as well as the employee with his mortgage or hire purchase. Interest rates must be cut right back to a ceiling of around 9 per cent. If inflation is outstripping this rate then that is to the disadvantage of those who normally have money to lend —the wealthy. It would not affect the lending institutions as all they are interested in is their percentage margin for handling the funds. The Government is irresponsible not to have restricted interest rates and is feeding inflation by its own high interest borrowing. —Yours, etc., R. B. McKENZIE. December 7, 1979.
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Press, 10 December 1979, Page 20
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170The economy Press, 10 December 1979, Page 20
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