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Telegraph: Merv's Excuses Wearing Thin

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(Dont think this has been posted here...)

Seems that the good old torygraph have had enough of Merv's excuses for low interest rates and want them jacking up

http://www.telegraph.co.uk/finance/economics/7937496/Bank-of-Englands-inflation-excuses-begin-to-wear-thin.html

I like the bit where they are likened to being as pathetic as "Dog ate my homework!"

Im hoping Davie and Georgie are putting pressure on Penfold to jack the rates up!!!! Bring 'em on

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They were sticking the boot in on the Today programme as well, saying the BOE forecasts were always wrong.

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They were sticking the boot in on the Today programme as well, saying the BOE forecasts were always wrong.

The FT said that you could have beaten BOE forcast's by guessing inflation would be 2.5% every month since 1997, on average you would have been more accurate.

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I wish I had a job where I could balls something up 42 times out of 51...

Granted its difficult to predict the future, but you would think worse case he would be above target roughly 50% of the time and below target the other 50% of the time. To be above target 80% of the time, you may as well say sod it and not even try to control inflation. Oh, hang on...thats Merv's policy right now :ph34r:

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Granted its difficult to predict the future, but you would think worse case he would be above target roughly 50% of the time and below target the other 50% of the time. To be above target 80% of the time, you may as well say sod it and not even try to control inflation. Oh, hang on...thats Merv's policy right now :ph34r:

No policy on inflation and judging on the last 18 months no policy on base rates either. We may as well replace these idiots with a few lines of software as their decision making process seems to come down to one of two IF statements and a random number generator.

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King is on TV now saying that inflation will stay above predictions for the whole of next year... yet they are keeping IRs low.... bw ankers looking after bw ankers.... feck the savers... the old and the prudent.

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King is on TV now saying that inflation will stay above predictions for the whole of next year... yet they are keeping IRs low.... bw ankers looking after bw ankers.... feck the savers... the old and the prudent.

You can tell Merv is back to his old ways - Sterling has just lost a cent against the Dollar while he's been yapping...

Merv Magic at work...

Edited by MrFlibble

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i dont think they will put the rates up anytime soon

Why would they ? They want a "soft landing" for house prices, to save the banks and the votes. A little bit of inflation in the mix will help as well.

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Interest rates are not going to go up... despite the fact that inflation has been running above forecast for a few years and will continue for the whole of next year - according to King.

Hence why, I will say it again, anyone with a sizeable cash sum has to find a way to protect it... either you try and find a house to buy now or you have to look somewhere like shares, gold, etc, which, of course, is highly speculative and dangerous IMPO in the current climate.

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Hence why, I will say it again, anyone with a sizeable cash sum has to find a way to protect it... either you try and find a house to buy now or you have to look somewhere like shares, gold, etc, which, of course, is highly speculative and dangerous IMPO in the current climate.

The best way to edge against King is to take out a massive Sterling short just before he opens his big mouth and then close it down once the damage is done :lol:

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i dont think they will put the rates up anytime soon, but i really wish and hope they would

they cant put rates up ideally they would be zirp for years to try to slow down the debt default until the economy is rebalanced, rates will only go up in the case of a currency crisis at some point and then they wont slowly go up the will rocket overnight well above 10% probably, that wont help anyone at all in the uk but if it happens they will be completely helpless in stopping it or smoothing it, its a race. My money is firmly on a currency crisis happening at some point within the next 2 to 3 years that will bring a much quicker endgame to this slow drip of wealth destruction

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Merv's just admitted in a roundabout way that the banks are still totally broke. YAY!

The rest of it is just excuses and flannel. You can see from his face that he knows things are totally f4cked.

But hey, come on guys, forget the doom and gloom. Vote with your feet. Withdraw savings from the sh1tty banks and buy gold. Sure there's price volatility, but it's in a secular bull that the current economic crisis, with it's accompanying government policy, can only help propel far higher. I'm up 17.5% in 18 months (1% a month on average - not bad by any standards). Now, how's that return on your savings account....

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King is saying that inflation is above target and will continune for the whole of next year - in any other time IRs would now rise but they are so desperate to save the banks that they will not.

I think it is time that HPCers got their heads around this - IRs will not rise for a long time to come short of some major crisis...

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they cant put rates up ideally they would be zirp for years to try to slow down the debt default until the economy is rebalanced, rates will only go up in the case of a currency crisis at some point and then they wont slowly go up the will rocket overnight well above 10% probably, that wont help anyone at all in the uk but if it happens they will be completely helpless in stopping it or smoothing it, its a race. My money is firmly on a currency crisis happening at some point within the next 2 to 3 years that will bring a much quicker endgame to this slow drip of wealth destruction

That's what we need, bring it on!

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That's what we need, bring it on!

well technically yes and all that is being done is pretty much guaranteeing it, just as the housing boom was guaranteeing an economic bust, zirp is in my opinion guaranteeing a currency crisis becuase its just forcing more malinvestment on top of the previous decades malinvestment, however like i said, whilst its long term beneficial it doesnt help anyone because a hell of alot of people will find themselves bankrupted overnight (fair enough for the idiots) and a hell of alot out of work and then bankrupted when the company they work for goes to the wall. There is an unbelievable amount of collateral damage to innocent bystanders attached to it

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Currently, there appears little cause for concern. Gilt yields have fallen since the Budget and, according to the latest YouGov poll, inflation expectations are still lower than pre-recession levels at just above 3pc. Benign as things may seem, though, there is no room for complacency. When the markets scent blood, they move quickly.

I hate articles like this. The markets are happy but the journalist says 'yes but, but, but they might change!'. Well write your article when the markets change, not now! Everyone, including Osborne, like to predict what the markets 'might' do, but pay scant attention to what they're currently saying. He even threw in the 'but look at Greece!' cliché that justifies any economic position you care to take.

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they cant put rates up ideally they would be zirp for years to try to slow down the debt default until the economy is rebalanced, rates will only go up in the case of a currency crisis at some point and then they wont slowly go up the will rocket overnight well above 10% probably, that wont help anyone at all in the uk but if it happens they will be completely helpless in stopping it or smoothing it, its a race. My money is firmly on a currency crisis happening at some point within the next 2 to 3 years that will bring a much quicker endgame to this slow drip of wealth destruction

Yep, it will take a crisis to force interest rates up as it's clear that the BoE/government are dead set against raising them and will keep them low irrespective of official inflation indices.

The longer they stay low, the bigger the inevitable crisis will be and hence the greater and more damaging the shock adjustment.

But kicking the can down the road has been economic policy for quite some time now. It's a good tactic if you are a politician as if you can do it for long enough, you'll be gone by the time things come to a head.

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King is on TV now saying that inflation will stay above predictions for the whole of next year... yet they are keeping IRs low.... bw ankers looking after bw ankers.... feck the savers... the old and the prudent.

ArgyleSweaterThreePigs.gif

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Yep, it will take a crisis to force interest rates up as it's clear that the BoE/government are dead set against raising them and will keep them low irrespective of official inflation indices.

The longer they stay low, the bigger the inevitable crisis will be and hence the greater and more damaging the shock adjustment.

But kicking the can down the road has been economic policy for quite some time now. It's a good tactic if you are a politician as if you can do it for long enough, you'll be gone by the time things come to a head.

Pity that they didn't notice that said road is a cul-de-sac.

p-o-p

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Not seen any recent data, can only assume that BOE pension fund is almost totally loaded with infltion protecting TIPS.

Still theis seems about the only way they can run their fund in profit by running the inflation target for their gain.

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CPI is clearly constructed in such a way that's it's impossible for it to move out of a fairly tight band of 0% - 5%.

Evidence? Oil has oscillated from c. $40 up to $147 crashed back down to $35 and then back up to $87.

House prices doubled over 10 years. i.e. Average inflation was 7% p.a. over that period.

The inflation measures are clearly massively wrong.

Domestic monetary policy against the background of global capital flows and massively deflationary forces from Chinese manufacturing make a mockery of our entire economic policy.

Inflation is simply WRONG. House prices are probably much closer to inflation reality 7% p.a. Real wages are being intentionally and systematically crushed to feed the glow ball capital monster.

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I used to read and watch the web broadcast every three months, trying to get an idea of how the economy will perform in the next two years. Now, I don't bother - what is the point??????

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  • 261 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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