Tuesday, May 15, 2007
Bank Of Japan Worried About Carry Trade!
FT: BOJ Govenor Signals Rate Rise
I think that with the corrupt manipulation of Inflation In UK to keep IR's low (Below 8%) it may be another trigger for the price correction. From the US and/or the unwinding of cheap money and the carry trade. Inflation dropped to 2.8% because they double measured gas & had sales on furniture???? But food was up globaly and everything else we have to but????
Posted by waitingfor hpc @ 12:30 PM (176 views) Add Comment
6 Comments
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1. Ides Of March said...
The BoJ governor states: “If the BoJ acts too slowly in adjusting interest rates, that would raise the possibility of [upside risks] occurring and would mean that we are not fulfilling our responsibility.”
This suggests that the BoE has not been fulfilling their responsibility.
2. dohousescrashinthewoods said...
Interesting: "Jean-Claude Trichet, European Central Bank president, on Thursday signalled that eurozone rates would rise to 4 per cent in June".
Seems everyone is creeping up. Globally IRs are on the up. Seems "unusually low" rates are creeping back to norm as credit contracts. Only the US is visibly stuck between a rock and a hard place - they seem to have hit their head on something.
Could it be that they have @$!&*ed themselved to the eyeballs with debt?
And the UK is different because..?
Looks like HPC is a given, the question (posed by many here) is what will come with it and how big will that something be?
3. sold 2 rent 1 said...
“The BoJ’s concern has to do with the global bubble, not domestic inflation”
"There is a broad consensus, however, that the BoJ will not be able to raise rates from 0.5 per cent until after the July Upper House elections."
Looks like the perfect storm is ready to hit later this year.
Carry trade to end.
Chinese stocks to crash
US economy to go into recession
All 3 events will feed off each other and will result in a huge liquidity crisis and worldwide sell-off in stocks.
The creeping inflation we are seeing now will keep IRs on hold and prevent big "calming cuts".
By the time big IR reductions are allowed it will be too late to save the world ecoonomy.
HPC won't show up for a while later as property is illiquid and is the last asset to get sold.
4. speculatorone said...
Anyone in the know, can you explain how they choose these strange items as a basis for inflation figures?
5. mrmickey said...
I think the central banks of the world have lost control of things, now money is created by the pressing of a keyboard there's nothing they can do to stop it, they can fiddle about with interest rates but that won't stop the sea of money now created outside of their influence.
6. japanese uncle said...
In Japan traditional piggy banks are solf like pancake at the moment, the reason being that people are saving money really under the matress rather than in banks offering such unfairly feeble IRs. What a laughable situation! It must be rectified and that very soon!