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Forgive My Stupidity, These Mpc Meetings

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given the amount of money circulating, devaluation, Chinese imports being locked out.....other important stuff? Or does this not get reported `cos the mainstream media think we`re too thick to "get it"? The obsession with interest rates only always strikes me as diversionary.

Also, any one got any figures on how much more paper money there is in the system since Gordon auctioned off all the gold? Finally, what price did he flog it all at? :o

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The irony is that Gordon Brown, the UK's Chancellor of the Exchequer, is simultaneously leading the charge on behalf of IMF gold sales - purportedly to assist debt relief in poor countries - while damaging the price by proposing to sell some of the UK's reserves in advance.

Think as sh1t


Some info for you anyway

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Read in Finance this week that the BoE does not really have any control over interest rates realistically and cannot move them materially. This surprised me and they are more like the MET in predicting the weather, whereby they are in reality second guessing the market themselves and they cannot buck the market

For instance they could not raise rates by 2% or drop them by 10%. In fact its not the Banks aim to set interest rates(in this context actually controlling the rate and supply of money from a market intervention point of view) and just to control inflation within the governments target level, and raising and lowering interest rates is the way of doing this by sending signals to the economy

Its argued that the BoE role in the economy is really psychological, whereby raising or lowering interest rates tells people and companies to spend or tighten their belts, and they actually respond accordinly. If this sounds a bit odd heres another example of if the BoE could control interest rates then they would set rates for different borrowers, for example the BoE would like to set the rates for home loans to curb HPI, but encourage savers to put money away for their pensions, but again it is the market that sets these rates in reality.

Something to maybe think about, cannot say I am an expert but sounds reasonable when one thinks about how mortgage rates rise and fall with BoE decisions in actuality, with cuts not being passed on etc. If this is the case it will take a downturn in the fundamentals of the economy and rise in bad debts etc. till a restriction in the money/credit supply will come into effect due to lenders restricting liabilities etc. and the real cost (interest) rate will increase.

Wouldnt mind any comments on the above or differing views if anyone has some

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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