Wednesday, Aug 20, 2008
The Doors - The End ( www.lyricsmode.com/lyrics/d/doors/the_end.html )
Telegraph: Apocalyptic times for Britain's economy
...As debt increases the pressure for higher interest rates to kill off inflationary pressures may become impossible for the MPC to resist.
Posted by whostolemyendowment @ 04:30 PM (1256 views) Add Comment
23 Comments
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1. malct said...
OK I haven't read the article and you can call me stupid - but - are not the inflationary pressures external and beyond 'control' by Dick Head's interest rates?
Surely, increasing interest rates in the new situation will simply increase existing debt by virue of the additional interest on existing loans. Do nothing to curb inflation and if anything strengthen the case for pay increases, as if that case needs some-one else to fight its corner. (possesssssive pronoun gardenneting)
Small businessess in particlular will find it harder to cope.
But then, isn't that what this is all about. The transfer of wealth and power!
head, noose, out on a limb, whatever, where is p4ac?
when they create the debt out of thin air they don't create the interest - takes time.
2. str 2007 said...
As far as I'm concerned malct, raising interest rates should help with inflation as raising them will strengthen the pound making imports less expensive.
We import most things, Oil, Electricity, Gas, Food etc etc all the things that are rocketing up in price.
I personally think the bank of England should of reated by now and raised rates by about 1% at least.
That would send a clear signal that they are serious and gives them more room to reduce as and when the going gets tough.
Having done nothing to date it implies by lack of action that they either don't know what to do or are in a jam - of their own making - which they are.
A mistake in my opinion would be to follow America and drastically reduce rates - at this stage anyway.
3. nooneo said...
I agree str 2007.
Interest rates should by now be at least 6%.
And remember according to the "sound fundementals" argument 6% interest rates would still be way, way below what they were at the last crash so should have little or no effect on the strength of the crash (according to all the experts that push the 'sound fundementals' argument again and again).
Seriously though. we do need to control imported inflation and that cannot be done wth the pound on the run. The property market will find it's own bottom regardless of rate cuts or minor (1-2%) rate increases. What we need know is someone to grab the helm of (f) UK (ed) plc and ensure we don't get runaway inflation and millions taking their place on the end of the unemployment queue!
Bleedin' shame w'eve got 'the best chancellor since the second world war' in charge, rather than someone with at least a basic grasp of economics (VC for instance)
4. malct said...
on one level I agree with both of you - but
labels / boxes
1688
1694
360 / 7
outside the box
accept no label
we can't / can control imported inflation ? - who are we?
Web of Deceit - Mark Curtis
Century of Self Adam Curtis
Human Givens
5. malct said...
isn't it time for serious monetary reform?
6. malct said...
where's ivmreader?
7. malct said...
and cornishman
8. str 2007 said...
Well glad you agree with us.
Just one thing - what are you going on about ?
I probably shouldn't have asked that question !
9. p. doff said...
Malct, is it the amber nectar or the whacky baccy?
10. malct said...
and dog fordib - david!
or was it Mary?
Sorry, I'm still reading 'Conversations with God' and Conversations with Dog'
Sometimes we get confused.
11. gardeniadotnet said...
4.@malct
What shall we reap from the seeds thou hast sown?
12. gardeniadotnet said...
@p.doff - as sardonic as ever.
Good to have you back.
13. gardeniadotnet said...
Yes, where is lvmreader?
Make thyself known unto us.
Dost thou act under the nom-de-plume 'James,' pray tell?
14. renting2 said...
Choice:
High interest rates and tough choices leading to a solid economy - eventually.
Or
Temporarily easy choices with low interest rates leading to a doomed economy - very quickly.
15. gardeniadotnet said...
The New Depression is nigh.
I have held this view for a (comparatively) long time.
No one, so far, has come close to convincing me otherwise.
Any takers?
16. gardeniadotnet said...
@14. renting2
I have taken the liberty of editing your post...
Choice: High interest rates and tough choices leading to a doomed economy - very quickly.
Or
Temporarily easy choices with low interest rates leading to a doomed economy - very quickly.
Can you spot the common denominator?
17. titaniccaptain said...
@ malct
"Sorry, I'm still reading 'Conversations with God"................I read all those books back in my sad new age phase along with the celestine prophecy and everything by david icke and I came to the conclusion that......................it was all good fun........... but................not the truth shame really thought id found the answer to life and it wasnt 42..........ah we will do these silly things.............i.e. S2R1 (who i think is fantastic by the way even though I dont agree with most of what he says at least he believes in something) has everything down to patterns and waves and cycles yet he has left out the ever important effect of the tree frog F@rting in winter into a box of Terry's all gold......this is the singular most important factor that effects Gold and its wibbly wobbly relation to the spider 10 thouseand metre sprint
18. malct said...
tc sounds like you haven't read Conversations with Dog! are well never mind.
Actually, on a more serious note, I was thinking more of the successful Dutch Armada in 1688 and the odd placing of the Golden Hind next to the statue of Bill Grapefruit in Brixham harbour. The freedoms of England I will preserve and all that twaddle.
The Glorious Invasion which led six years later to the enslavement of the English via compound interest.
gardennetting @ 9.46pm yup I'm with you on that one, very sad.
19. Jungli said...
What does David Smith say?
20. James said...
!http://www.viewpoints.com/images/review/2008/2/23/1199336582-99207_full.jpg!
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