Politics

[Tonge moor green jacket]

Cheers.

Can clearly see how the QE following the crash has stored up an interest rate hike and inflation pressures.

Was starting before Putin did his thing but he certainly exacerbated things.

Don't think today's increase was necessary, but that's what the mpc get paid to assess and decide.

[BobyBrno]

After todays rise to 4.5% a comparison  since the beginning of the month.

European Central Bank raised theirs to 3.25% 

US Fed to 5%

[globaldiver]

Bank of England not even at the races. 

[Farrelli]

We should leave the unelected bureaucrats at the BoE and start controlling our own money.

[globaldiver]

36 minutes ago, Farrelli said:

We should leave the unelected bureaucrats at the BoE and start controlling our own money.

Given that any government gets the rap for it anyway, no reason not to.

[Sweep]

3 hours ago, Tonge moor green jacket said:

 

Don't think today's increase was necessary, but that's what the mpc get paid to assess and decide.

It'll be going up again a couple more times before the Autumn I'd have thought. I do feel a little bit for those on variable mortgages or those who have fixed deals that are about to end,as they're most likely in for a bumpy ride over the next few years.........although in all fairness, this sort of thing should be anticipated when working out finances. 

On the other side though, for those with savings, the rise is great news

Edited May 11, 2023 by Sweep

[Winchester White]

This is a longer clip which adds a bit of context to why he was so rightly annoyed.

 

[Farrelli]

The latest Tory sap taking pelters on all manner of subjects on QT. Her best comment that environmental improvements might take 25 years had the audience roaring with laughter.

[Mounts Kipper]

6 hours ago, globaldiver said:

Bank of England not even at the races. 

Where do you think they should be on this?

[DazBob]

1 hour ago, Mounts Kipper said:

Where do you think they should be on this?

At the races.

[Casino]

Diver is playing yet another anybody but the tories to blame card

Hes nowt if not persistent

[bolty58]

2 hours ago, Casino said:

Diver is playing yet another anybody but the tories to blame card

Hes nowt if not persistent

He's a top lad. One of the few not fooled by the left wing media.

[globaldiver]

6 hours ago, Mounts Kipper said:

Where do you think they should be on this?

Should be and should have been.

Should have been

I understand the immediate reaction to the financial meltdown in 2008. That the “powers that be” then created money and kept interest rates at around zero, which has created huge issues for now and the future, including inflated asset price bubbles (housing in particular), corrupted the allocation of capital, lead to undue financial risk-taking (as investors were forced to “chase for yield”), and contributed to the ongoing pensions crisis.

Mark Carney claimed that ultralow interest rates and quantitative easing would produce the “escape velocity” to lift economic growth in the wake of the Global Financial Crisis. But low rates and QE have had the opposite effect: lowering productivity growth, encouraging an excessive build-up of debt and contributed to ongoing financial instability.

Interest rates should have been positive through much of the period, the roof should have been repaired when the sun was shining.

Should now

The current bout of inflation has been caused by one off shocks, from the Covid response and the Russian war on Ukraine. What sane mind would use the standard reflex solution to inflation (increasing interest rates) to cure one off shocks? I think it’s silly.

Or is there something else going on? I think so. I think that Andrew Bailey (who was poor at the FCA,  in my view) is using the situation to increase interest rates towards the “correct” rate, as he knows that the BoE fucked up during the previous period. 

[Spider]

55 minutes ago, globaldiver said:

Should be and should have been.

Should have been

I understand the immediate reaction to the financial meltdown in 2008. That the “powers that be” then created money and kept interest rates at around zero, which has created huge issues for now and the future, including inflated asset price bubbles (housing in particular), corrupted the allocation of capital, lead to undue financial risk-taking (as investors were forced to “chase for yield”), and contributed to the ongoing pensions crisis.

Mark Carney claimed that ultralow interest rates and quantitative easing would produce the “escape velocity” to lift economic growth in the wake of the Global Financial Crisis. But low rates and QE have had the opposite effect: lowering productivity growth, encouraging an excessive build-up of debt and contributed to ongoing financial instability.

Interest rates should have been positive through much of the period, the roof should have been repaired when the sun was shining.

Should now

The current bout of inflation has been caused by one off shocks, from the Covid response and the Russian war on Ukraine. What sane mind would use the standard reflex solution to inflation (increasing interest rates) to cure one off shocks? I think it’s silly.

Or is there something else going on? I think so. I think that Andrew Bailey (who was poor at the FCA,  in my view) is using the situation to increase interest rates towards the “correct” rate, as he knows that the BoE fucked up during the previous period. 

It is what it is

[Mounts Kipper]

1 hour ago, globaldiver said:

Should be and should have been.

Should have been

I understand the immediate reaction to the financial meltdown in 2008. That the “powers that be” then created money and kept interest rates at around zero, which has created huge issues for now and the future, including inflated asset price bubbles (housing in particular), corrupted the allocation of capital, lead to undue financial risk-taking (as investors were forced to “chase for yield”), and contributed to the ongoing pensions crisis.

Mark Carney claimed that ultralow interest rates and quantitative easing would produce the “escape velocity” to lift economic growth in the wake of the Global Financial Crisis. But low rates and QE have had the opposite effect: lowering productivity growth, encouraging an excessive build-up of debt and contributed to ongoing financial instability.

Interest rates should have been positive through much of the period, the roof should have been repaired when the sun was shining.

Should now

The current bout of inflation has been caused by one off shocks, from the Covid response and the Russian war on Ukraine. What sane mind would use the standard reflex solution to inflation (increasing interest rates) to cure one off shocks? I think it’s silly.

Or is there something else going on? I think so. I think that Andrew Bailey (who was poor at the FCA,  in my view) is using the situation to increase interest rates towards the “correct” rate, as he knows that the BoE fucked up during the previous period. 

I agree with plenty of this, however the points you have made in the highlighted paragraph I cannot see an alternative solution given that if we don’t increase interest rates the pound weakens against all major currencies which then increases the price of everything we import and fuels inflation, you think it’s silly, what is the alternative course of action the Bank of England should take? 

Edited May 12, 2023 by Mounts Kipper

[Sweep]

Just been speaking to my mate, and he reckons that his mortgage is going to increase by a touch under £1100 per month when he comes off his fixed deal at the end of May 😧

[Sweep]

5 hours ago, bolty58 said:

He's a top lad. One of the few not fooled by the left wing media.

You're obsessed by this it seems - you do realise that the world isn't being "fooled" by left wing media. You'll start warbling on about MSN next, which is the sign of a real loon. The largest selling newspapers, I believe, in the UK are The Daily Mail, The Express and The Sun and I'm struggling to see them as being overly left wing.

 

[Not in Crawley]

5 minutes ago, Sweep said:

You're obsessed by this it seems - you do realise that the world isn't being "fooled" by left wing media. You'll start warbling on about MSN next, which is the sign of a real loon. The largest selling newspapers, I believe, in the UK are The Daily Mail, The Express and The Sun and I'm struggling to see them as being overly left wing.

 

You fool! Don't you know there are dark left wing forces pulling the strings behind everything in all the major cities a cabal of people drinking chardonnay and sinister slags trying to shut down the common man? Don't be so naive, open yours eyes to the reality of the thought police. 

Drain the swamp! Drain the swamp!

[Sweep]

16 minutes ago, Not in Crawley said:

You fool! Don't you know there are dark left wing forces pulling the strings behind everything in all the major cities a cabal of people drinking chardonnay and sinister slags trying to shut down the common man? Don't be so naive, open yours eyes to the reality of the thought police. 

Drain the swamp! Drain the swamp!

you missed out the word "creeping" otherwise it would have been full house 😁

 

[Wanderlust]

I have massive reservations about the Public Order Act recently passed as it stinks of Russki totalitarianism.

Totally understand the governments' discomfort with protesters and strikes but we already have laws in place that cover every eventuality.

The much-abused Stop and Search law was bad enough but the new POA allows the police to actually arrest people purely on the grounds that the officer suspects that someone is about to commit a crime - as if we had a police force of mind readers.

Carte blanche for the police to arrest anyone, at any time, without a crime having been committed, without any evidence that one was about to be committed and to abuse the law to promote political agendas or exercise their own personal prejudices - something they have a track record of doing.

Worse still, they have zero burden of proof  other than "I suspected".

So in theory, a cop could restrain and cuff Sunak and the Cabinet and march them off to the cells on a whim.

Stupid, ill-conceived nonsense that needs to be repealed as soon as possible. I'm all for law and order but I draw the line at Russian-style policing and the general undermining of British values.

 

 

Edited May 12, 2023 by Wanderlust

[globaldiver]

3 hours ago, Mounts Kipper said:

I agree with plenty of this, however the points you have made in the highlighted paragraph I cannot see an alternative solution given that if we don’t increase interest rates the pound weakens against all major currencies which then increases the price of everything we import and fuels inflation, you think it’s silly, what is the alternative course of action the Bank of England should take? 

Fair points. We are stuck in a deluded loop of low interest rates and ever-increasing borrowing, much of which is for current spending or debt, which will be difficult to sustain. We can either continue with the myth, or stop and go down a different route.

I think the starting point would be to ditch the BOE as setters of interest rate. The government are taking the rap for inflation, so might as well have the tools. I’d then commence the conversation around interest rates, bond markets and fiscal sovereignty, with the population and markets, but immediately reduce rates. This would be interesting……

[Not in Crawley]

6 minutes ago, Wanderlust said:

I have massive reservations about the Public Order Act recently passed as it stinks of Russki totalitarianism.

Totally understand the governments' discomfort with protesters and strikes but we already have laws in place that cover every eventuality.

The much-abused Stop and Search law was bad enough but the new POA allows the police to actually arrest people purely on the grounds that the officer suspects that someone is about to commit a crime - as if we had a police force of mind readers.

Carte blanche for the police to arrest anyone, at any time, without a crime having been committed, without any evidence that one was about to be committed and to abuse the law to promote political agendas or exercise their own personal prejudices - something they have a track record of doing.

Worse still, they have zero burden of proof  other than "I suspected".

So in theory, a cop could restrain and cuff Sunak and the Cabinet and march them off to the cells on a whim.

Stupid, ill-conceived nonsense that needs to be repealed as soon as possible. I'm all for law and order but I draw the line at Russian-style policing and the general undermining of British values.

 

 

Shhh! You'll be getting a few all hot under the collar about this.

[Wanderlust]

1 minute ago, globaldiver said:

Fair points. We are stuck in a deluded loop of low interest rates and ever-increasing borrowing, much of which is for current spending or debt, which will be difficult to sustain. We can either continue with the myth, or stop and go down a different route.

I think the starting point would be to ditch the BOE as setters of interest rate. The government are taking the rap for inflation, so might as well have the tools. I’d then commence the conversation around interest rates, bond markets and fiscal sovereignty, with the population and markets, but immediately reduce rates. This would be interesting……

Would that encompass the fiscal sovereignty of the BOP's like the Cayman Islands, British Virgin Islands, Bermuda and Turks and Caicos?

[Wanderlust]

1 minute ago, Not in Crawley said:

Shhh! You'll be getting a few all hot under the collar about this.

Can't imagine anyone would support it. If they do I hope they get lifted for "looking at me funny".

[Not in Crawley]

4 minutes ago, Wanderlust said:

Can't imagine anyone would support it. If they do I hope they get lifted for "looking at me funny".

Or even for thinking about looking at you funny.