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fleabag

Is There A Silver Lining?

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Apologies in advance to those of you far more learned than I; hopefully you can set me right if my thinking is flawed.

So as a saver I am scared inflation will erode the value of my (very!) hard earned savings. But, doesn't the BOE set IR's independantly; so if there's QE and runaway inflation they will be forced to raise IRs and all the people on tracker mortgages who stretched themselves will put ppties back on the market as wages probably won't go anywhere. Also we'll get a better rate on our savings relative to the average wage.

P.S Does anyone know when the LR figures are updated on sites like nethouseprices cause I'm dying to find out what a house I looked at in March sold for.

Ta.

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half the BOE members are appointed by the government direct, the other half by the governor. The governor is appointed by the gov directly. BOE set rates based on figures from the office of national statistics which isn't independent and tweaks the data as required.

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half the BOE members are appointed by the government direct, the other half by the governor. The governor is appointed by the gov directly. BOE set rates based on figures from the office of national statistics which isn't independent and tweaks the data as required.

and they ignore the inflation rate anyway which is 7 times higher than then base rate.

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and they ignore the inflation rate anyway which is 7 times higher than then base rate.

They have two things they want to achieve, 1. Financial Stability, 2. Inflation control. If the economy isn't stable the second inflation targeting is temporarily ignored

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But, doesn't the BOE set IR's independantly; so if there's QE and runaway inflation they will be forced to raise IRs

BoE has two targets, CPI 2% (+/-1%) and financial stability. The CPI target has been clearly in bin for the last couple of years and the financial stability consideration is keeping base rates low.

The 2 year forecasting BoE CPI fan charts have no credibility. It is clear to me that their forecasting models are simply wrong. I think base rates will rise only when denying the existance of inflation looks farcical. Another year of 5% RPI would make the MPC looks like idiots.

VMR.

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They have two things they want to achieve, 1. Financial Stability, 2. Inflation control. If the economy isn't stable the second inflation targeting is temporarily ignored

a stable economy is one they leave alone and only issue money when the wealth created grows...10% more wealth=10% more money issue=0% inflation.

they pay no attention to wealth..they pay attention to GDP.

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They have two things they want to achieve, 1. Financial Stability, 2. Inflation control. If the economy isn't stable the second inflation targeting is temporarily ignored

I consider the economy more 'stable' now than pre-2007 - we're in the sh1t, but stuck firmly there...

Edited by Constable

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They have two things they want to achieve, 1. Financial Stability, 2. Inflation control. If the economy isn't stable the second inflation targeting is temporarily ignored

I suspect it's more like they have one thing they want to achieve, which is to keep their highly paid careers intact. That means not rocking the boat, and it means not upsetting the paymaster (the UK government).

Or do you think they "independently" decided to print £200bn in cash and buy £198.3bn of Gilts at precisely the time when the Treasury started running huge deficits and needed to issue a lot of public debt? That must have been a nice "surprise" for Alistair Darling.

The relationship between the BoE and the Treasury strikes me as a classic example of regulatory capture. Instead of the Bank trying to reign in the crazy behaviour of the Treasury, they started asking "how can we help?" Don't expect a system which discourages dissent to operate in a healthy and self-correcting way.

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Apologies in advance to those of you far more learned than I; hopefully you can set me right if my thinking is flawed.

So as a saver I am scared inflation will erode the value of my (very!) hard earned savings. But, doesn't the BOE set IR's independantly; so if there's QE and runaway inflation they will be forced to raise IRs and all the people on tracker mortgages who stretched themselves will put ppties back on the market as wages probably won't go anywhere. Also we'll get a better rate on our savings relative to the average wage.

P.S Does anyone know when the LR figures are updated on sites like nethouseprices cause I'm dying to find out what a house I looked at in March sold for.

Ta.

It's more or less it. But at present there is fight between inflationary QE and deflationary forces of depression and debt deleveraging.

Either way there will be a silver lining as that metal will, after a short correction, go up substantially throughout the coming year.

Rightmove has sold prices and they appear when the LR has registered it - about 3 -5 months after sale completion.

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It's more or less it. But at present there is fight between inflationary QE and deflationary forces of depression and debt deleveraging.

Either way there will be a silver lining as that metal will, after a short correction, go up substantially throughout the coming year.

Rightmove has sold prices and they appear when the LR has registered it - about 3 -5 months after sale completion.

I hoped this might be a silver thread and agree with you about the silver price. Need to get in after the double dip/China trouble, but before the next round of printy printy. Do you think such a window will exist?

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  • 259 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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