Nottingham, London -- (SBWIRE) -- 09/21/2010 -- Consumer spending power may shrink even further in coming years, as stated by financial expert Michael Jones, who recently commented on this issue in his column in Executive Finance Free-fall, which deals with financial service news.

Apparently in an attempt to revive their economies and spur consumer spending, heads of government are planning to push forward plenty of money into national economies.

Although, the question is where will we get this desperately needed cash injection given that countries across the breadth of the world are experiencing economic trouble? An answer to this is that governments may take drastic solutions in hand i.e. that inflation could rise if countries print more money.

This is already happening in some countries, but this is working to increase inflation.

The very meaning of inflation is a glut of money trying to purchase a limited supply of services and goods, so it will just lead to inflation by printing more money.

The writings highlight that the creation of money in an effort to promote consumer spending doesn't solve long term problems and issues.

Mike Wallace, money guru and spokesman for online e-zine Economy MD, said, "Generating more money to print will only push inflation. Prices will go up and people won't know why. The solution is to draw in investment from outside and thus improve the amount of capital put back into the country by boosting support in the tourist industry."

Yet, as the government decides to pursue the strategy to draw funds off of consumer spending, the likelihood of money reserves drying up completely is high.

This effect has been felt across the board with one credit-card issuer Efenta announced that as of this month, its customers would no longer be able to use their credit cards. The company, which is an expert company in smaller companies, has actually revealed that they will be closing up to 500,000 credit card accounts as a way to hold on to existing capital and prevent future losses. This is not the only company making this decision. Quite a few credit card companies are rethinking their policies in an attempt to reduce their overall risk exposure.

This perhaps explains why a lot of consumers have lost a little faith in using plastic and are rather taking their disposable income and putting right into the bank.

Margaret Smith, a financial adviser, said, "Quite a lot of my customers have made the decision to take out a Notice Cash ISA rather than just buying things with that money. Personally, I think they feel it is better to save their money rather than spend it on over inflated products."

As consumers tighten their wallets, commercial business owners are feeling the pain. A lot of experts have been waste their time arguing whether higher prices caused tighter consumer spending, or vice versa; but this is a redundant question because unless positive action is taken then companies may flail.

According to a TEJ News report, "Although seemingly marginal, consumer spending from individuals is down by 0.3 per cent within the last few months. In the current economic climate this represents the biggest dip since June 2004."

Financial gurus have also suggested that falls in consumer spending habits will continue until the next financial quarter.

Although, financial advisers are suggesting it may be best to hold on to your money, put it in a specific savings account and then try not to spend that cash on luxury items until levels of economic recovery have been observed in specific markets.

For more information see following link:
http://www.investmentsense.co.uk/free-services/best-buy-savings-accounts/notice-cash-isa/