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Helecopter Ben.........rates Are Going Up

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A couple days ago in Japan, Ben Bernanke said that the benefits of low interest rate policies that politicians want “are not sustainable and soon evaporate, leaving behind inflationary pressures that worsen the economy’s long-term prospects……thus political interference in monetary policy can generate undesirable boom-bust cycles that ultimately lead to both a less stable economy and higher inflation.”

[pause inserted so you have time to pick your jaw up off the floor]

My Take:-

This could be true or he is just talking the $ up?

Mike

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A couple days ago in Japan, Ben Bernanke said that the benefits of low interest rate policies that politicians want “are not sustainable and soon evaporate, leaving behind inflationary pressures that worsen the economy’s long-term prospects……thus political interference in monetary policy can generate undesirable boom-bust cycles that ultimately lead to both a less stable economy and higher inflation.”

[pause inserted so you have time to pick your jaw up off the floor]

My Take:-

This could be true or he is just talking the $ up?

Mike

Finally. Mr Ben has read economics for dummies

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Guest Steve Cook

A doubling or tripling of current rates then?!

If rates rise at all then it's game over.

Edited by Steve Cook

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A couple days ago in Japan, Ben Bernanke said that the benefits of low interest rate policies that politicians want “are not sustainable and soon evaporate, leaving behind inflationary pressures that worsen the economy’s long-term prospects……thus political interference in monetary policy can generate undesirable boom-bust cycles that ultimately lead to both a less stable economy and higher inflation.”

[pause inserted so you have time to pick your jaw up off the floor]

My Take:-

This could be true or he is just talking the $ up?

Mike

What they DO - not what they SAY.

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rates going up will affect you, quite possibly adversely, even if you are debt and mortgage free.

No debts, no mortgage as house is owned outright, reasonable sum in savings currently earning next to nothing.

I'd be interested to hear how rising rates could affect me adversely, unless I need to borrow and that's unlikely.

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I'd be interested to hear how rising rates could affect me adversely, unless I need to borrow and that's unlikely.

you may lose your job as the economy contracts or lose your savings in the resulting crisis.

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There is some significance of saying this whilst in Japan, no?

Pleez could you change your avatar..SO depressing seeing that tw@t

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Jaw boning. Rates aren't going anywhere for a long time.

I disagree, base rates will need to rise soon to counter inflation and, possibly more importantly, to provide the banksters with a 'raison de eitre'

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1. you may lose your job as the economy contracts or

2. lose your savings in the resulting crisis.

If 1 happens, I have a secondary income which will cover the basics.

If 2 happens, we're all in the same boat and anarchy or military law will result however, I don't honestly believe we've hit TFH territory just yet.

I may be a bear but I'm not a complete pessimist!

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If 1 happens, I have a secondary income which will cover the basics.

sure, but in this outcome, would you personally have been better off with rates staying the same, or rising and resulting in your job being lost?

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sure, but in this outcome, would you personally have been better off with rates staying the same, or rising and resulting in your job being lost?

If rates rise and I lose my job, the additional interest from my savings would help offset the loss in income.

I concede I may end up marginally less well off financially but at least I would still have an income which would enable me to live comfortably and, having been made redundant, I would then spend my time doing the things I enjoy.

Every cloud etc. :)

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A couple days ago in Japan, Ben Bernanke said that the benefits of low interest rate policies that politicians want “are not sustainable and soon evaporate, leaving behind inflationary pressures that worsen the economy’s long-term prospects……thus political interference in monetary policy can generate undesirable boom-bust cycles that ultimately lead to both a less stable economy and higher inflation.”

[pause inserted so you have time to pick your jaw up off the floor]

My Take:-

This could be true or he is just talking the $ up?

Mike

Total non-story. Perhaps he's doing it pacify those who are holding trillions of dollars of US treasuries. Interest rates are going nowhere (if they are it'll be negative). Deflation it is and that's bad news for equities, real estate and commodities. China's a major bust and Australia will then resemble Mad Max country (without the delicious Tina Turner) with unemployment at 30%.

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  • 150 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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