interestrateripoff

The Bank Of England Clueless Thread

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Q: You’ve argued today that Britain isn’t in a debt-fuelled consumer spending boom....so is this really an issue for the Bank’s Financial Policy Committee (which handles financial stability) rather than the MPC (which sets interest rates)

Mark Carney agrees, saying the FPC and the PRA (Prudential Regulation Authority) must consider whether consumer borrowing is too high.

He cites the danger of a group of people who are very indebted who will face serious problems repaying their debts when borrowing costs rise, potentially damaging the wider business cycle.

 

Well its certainly a danger now you lured everyone in with low rates for years your prize pillock ...made is so now any rate rise will cause damage to those who took on too much debt.

 

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11 minutes ago, Nabby81 said:

Well its certainly a danger now you lured everyone in with low rates for years your prize pillock ...made is so now any rate rise will cause damage to those who took on too much debt.

 

Unsecured consumer lending rates change surprising little. 

Default rates don't rise due to changes in policy rate, they rise due to changes in unemployment.

There is always "a group of people who are very indebted who will face serious problems repaying their debts". They are exposed during recessions when unemployment rises.

The idea it is somehow the central bank's fault is ludicrous (despite it being a favourite baiting topic on this site for reasons unknown)

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^

Quote

 

Q: You’ve argued today that Britain isn’t in a debt-fuelled consumer spending boom....so is this really an issue for the Bank’s Financial Policy Committee (which handles financial stability) rather than the MPC (which sets interest rates)

Mark Carney agrees, saying the FPC and the PRA (Prudential Regulation Authority) must consider whether consumer borrowing is too high.

 

It all sounds a bit too pass the parcel to be a sensible way to be running things especially things linked to a major economy.  

It might be a way to run a kids' game at a local garden fete - but not Britain's economy.

They are both BoE bodies and he's governor of the BoE and the new set up was supposed to avoid separation of responsibility.  When the next crisis hits it sounds like they'll be using the same excuses as the last crisis and all washing their hands of any responsibility.

Edited by billybong

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MPC member breaking ranks on looking through inflation:

"There is a chance, however, that these recent upside surprises are a precursor to more evidence that inflation is accelerating faster than expected and will overshoot the 2% target by more than in the MPC’s consensus forecast.

If these trends in both the real and nominal data are solidified, it will become increasingly difficult for me to justify tolerating such a large and likely overshoot of inflation - especially when compared to such a small and uncertain softening in growth and unemployment."

http://www.bankofengland.co.uk/publications/Documents/speeches/2017/speech959.pdf

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1 minute ago, darkmarket said:

MPC member breaking ranks on looking through inflation:

"There is a chance, however, that these recent upside surprises are a precursor to more evidence that inflation is accelerating faster than expected and will overshoot the 2% target by more than in the MPC’s consensus forecast.

If these trends in both the real and nominal data are solidified, it will become increasingly difficult for me to justify tolerating such a large and likely overshoot of inflation - especially when compared to such a small and uncertain softening in growth and unemployment."

http://www.bankofengland.co.uk/publications/Documents/speeches/2017/speech959.pdf

Increasingly difficult, but not impossible.

I'm finding playing football increasingly difficult, but I still do it.

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3 hours ago, darkmarket said:

MPC member breaking ranks on looking through inflation:

"There is a chance, however, that these recent upside surprises are a precursor to more evidence that inflation is accelerating faster than expected and will overshoot the 2% target by more than in the MPC’s consensus forecast.

If these trends in both the real and nominal data are solidified, it will become increasingly difficult for me to justify tolerating such a large and likely overshoot of inflation - especially when compared to such a small and uncertain softening in growth and unemployment."

http://www.bankofengland.co.uk/publications/Documents/speeches/2017/speech959.pdf

 

Good cop bad cop. Just enough to keep market guessing.

She'd be outvoted anyway.

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2 hours ago, interestrateripoff said:
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"One doesn't become successful as an international center by having lax standards and by being open to crises and regulatory arbitrage," Cunliffe said.

Jon Cunliffe, the innumerate bozo who was Second Permanent Secretary to the Treasury and Managing Director of Macroeconomic Finance under Gordon Brown. :rolleyes:

united-kingdoms-chancellor-of-the-excheq

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2 hours ago, interestrateripoff said:

 

Bank warns 'lax financial rules' are a route to failure

 

The BoE's deputy governor warns against abandoning bank rules amid claims the UK could become an offshore tax haven.

^

Quote

 

Sir Jon's comments come after suggestions that if Britain did not secure a good trade deal with the European Union following Brexit, the UK could become an offshore tax haven - encouraging businesses and banks to move to the country to avoid tougher regulations elsewhere.

 

One suspects full tax haven status was in the pipeline whether in or out of the eu.  It's been headed that way for years now including "encouraging businesses and banks to move to the country to avoid tougher regulations elsewhere.".

Maybe they have no recollection of events?

Along with printing money it's one of the last resorts of desperate governments.  That and turning an economy into a speculative casino.

Edited by billybong

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2 hours ago, interestrateripoff said:

If you work for a living it is now becoming pointless putting the extra effort in when extra hours worked are paid at flat rate if at all. Once the magic threshold which hasn't risen for years is crossed you actually net less per hour and I have come to the conclusion that my time is worth more than that to me.

As a skilled engineer I am actually considering lowering my retirement expectations significantly to get out earlier before the government and lousy employers grind the life out of me completely and this view is increasingly common amongst my peers.

Accordingly, I now minimise my economic expenditure, so no new cars, used mobiles, low powered netbooks and only replacing stuff when it breaks is the order of the day.

Therefore I am effectively reducing my contribution to GDP as much as possible in order to maximise my chances of gaining my economic freedom.

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@ChewingGrass

Such measures are one way to protest economic policies that we disagree with, to try and force change.  

Options.  Although so many different market views and positions, who choose to consume and lay claim to more and more, in belief it's stable good times for them.

Choices in a market imo.

Quote

balk at attempts to stimulate aggregate demand via inflationary policy of negative real interest rates, and raising real interest rates by reducing inflation through lower aggregate demand. This is perhaps the most unappreciated yet significant market development since the financial crisis.

 

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On 2/2/2017 at 1:40 PM, billybong said:

^

It all sounds a bit too pass the parcel to be a sensible way to be running things especially things linked to a major economy.  

It might be a way to run a kids' game at a local garden fete - but not Britain's economy.

They are both BoE bodies and he's governor of the BoE and the new set up was supposed to avoid separation of responsibility.  When the next crisis hits it sounds like they'll be using the same excuses as the last crisis and all washing their hands of any responsibility.

 

Still they gets Mo'  Money though their explanations be so funny.

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On 08/02/2017 at 11:12 PM, ChewingGrass said:

If you work for a living it is now becoming pointless putting the extra effort in when extra hours worked are paid at flat rate if at all. Once the magic threshold which hasn't risen for years is crossed you actually net less per hour and I have come to the conclusion that my time is worth more than that to me.

As a skilled engineer I am actually considering lowering my retirement expectations significantly to get out earlier before the government and lousy employers grind the life out of me completely and this view is increasingly common amongst my peers.

Accordingly, I now minimise my economic expenditure, so no new cars, used mobiles, low powered netbooks and only replacing stuff when it breaks is the order of the day.

Therefore I am effectively reducing my contribution to GDP as much as possible in order to maximise my chances of gaining my economic freedom.

Thats Brown.

Destroyed the UK private sector workforce. Pumped up public sector.

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16 hours ago, Tapori said:

 

Still they gets Mo'  Money though their explanations be so funny.

Indeed they have a cushy well paid job where incompetents and self servers thrive at everyone else's expense. Even their most crazy explanations get treated by other bankers, by some politicians and in most of the MSM etc as high wisdom.  Yet the failure is plain to see from the British economy - and all problems being solved by abnormal and outlandish interest rates, brushing off responsibility, yet more debt, QE, more boosts to house prices, bailouts, not spotting banking fraud, yet more ponzi and by statistical manipulation and suchlike.  If the BoE not always directly involved then associated with it. 

There was little opposition to the BoE officially taking over the responsibility in 1997 (in those days it was nothing could be worse than the Chancellors - but little did people know and at least with the Chancellors people had a vote) but it's been clear for years now that the BoE is not up to the task and they've just used the opportunity to line their own pockets.  In handing them the responsibility Britain was done a huge disservice - a disservice only matched by the level of incompetence and self serving of British politicians in supervising and monitoring the BoE's operations and outcomes.

Edited by billybong

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The relationship between the govt, BOE and the public is a lie.

The BOE are pretending to be independent.

No accountability either for them or the government over the short and long term mess they make as a result of direct market manipulation.

 

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On 08/02/2017 at 11:12 PM, ChewingGrass said:

If you work for a living it is now becoming pointless putting the extra effort in when extra hours worked are paid at flat rate if at all. Once the magic threshold which hasn't risen for years is crossed you actually net less per hour and I have come to the conclusion that my time is worth more than that to me.

As a skilled engineer I am actually considering lowering my retirement expectations significantly to get out earlier before the government and lousy employers grind the life out of me completely and this view is increasingly common amongst my peers.

Accordingly, I now minimise my economic expenditure, so no new cars, used mobiles, low powered netbooks and only replacing stuff when it breaks is the order of the day.

Therefore I am effectively reducing my contribution to GDP as much as possible in order to maximise my chances of gaining my economic freedom.

Yep, that's the majority view amongst my middle aged (I.T.) engineering friends too. Have a life whilst you can. basically.

Edited by dpg50000

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1 hour ago, dpg50000 said:

Yep, that's the majority view amongst my middle aged (I.T.) engineering friends too. Have a life whilst you can. basically.

Tax credit and credit pumped house prices.

Already dragged low and middle earners onto benefits.

Now causing higher earners to jack it in. I know someone who jacked a high paid job in to go and work at a care home.

People really dont grasp the full extent of what Brown did. And how damaging everything he did was. 

 

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On 08/02/2017 at 11:12 PM, ChewingGrass said:

If you work for a living it is now becoming pointless putting the extra effort in when extra hours worked are paid at flat rate if at all. Once the magic threshold which hasn't risen for years is crossed you actually net less per hour and I have come to the conclusion that my time is worth more than that to me.

As a skilled engineer I am actually considering lowering my retirement expectations significantly to get out earlier before the government and lousy employers grind the life out of me completely and this view is increasingly common amongst my peers.

Accordingly, I now minimise my economic expenditure, so no new cars, used mobiles, low powered netbooks and only replacing stuff when it breaks is the order of the day.

Therefore I am effectively reducing my contribution to GDP as much as possible in order to maximise my chances of gaining my economic freedom.

Good post. Any yes, lots of us are doing this. 

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22 minutes ago, Errol said:

Good post. Any yes, lots of us are doing this. 

Yep. My good self also.

Work in the IT arena. Ten years until I'm retiring. Cutting back on all non necessary purchases , have been doing so for last 5 years.

Run a 5yr old and a 25yr old car. Decided not to move house.....save the cash. I'm the sort of person that govts THINK will contribute to the increase in GDP.

He, he, he....:)

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