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When Will We See Ir's Rise

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With all this inflation appearing, when is Merv gonna get a grip and raise rates??

I do wonder, if nothings done and heads contiune to get buried in sand, what Cameron will say in response to £10 loafs of bread.

Maybe he'll advise the public to only have one slice of bread a week. :blink:

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With all this inflation appearing, when is Merv gonna get a grip and raise rates??

I do wonder, if nothings done and heads contiune to get buried in sand, what Cameron will say in response to £10 loafs of bread.

Maybe he'll advise the public to only have one slice of bread a week. :blink:

What's the problem? RPI is only 9.6x the current base rate :o

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Yeah they will be loving it today RPI is 4.8 down from the 5.0 it was last month so im sure they will be giving each other a pat on the back.

I dont see IR's rising for a very long time, I wish they woudl but i just dont see how they can raise them without causing mayhem.

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Yeah they will be loving it today RPI is 4.8 down from the 5.0 it was last month so im sure they will be giving each other a pat on the back.

I dont see IR's rising for a very long time, I wish they woudl but i just dont see how they can raise them without causing mayhem.

+1

but dose any one have any views on saving rate are they going to go up?

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With all this inflation appearing, when is Merv gonna get a grip and raise rates??

I do wonder, if nothings done and heads contiune to get buried in sand, what Cameron will say in response to £10 loafs of bread.

Maybe he'll advise the public to only have one slice of bread a week. :blink:

My fixed rate expires in November. IR hikes starting in December, 100%* guaranteed.

*The HPC definition of 100% guaranteed is worth exactly as much as any large organisation's promise to 'call you back' in response to a telephone query.

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I have said many times, we are in deflation. I do not care about temp stats. US is in deflation. Oil is falling. Baltic Dry INdex is at March 09 lows.

IR in UK may rise within 6 months (but I do not expect it). If it does it will come straight back down again.

No sustained rise 'till late 2011/2012 at ealriest.

We will not move to 'permament' inflation till 2012 at earliest.

5% RPI 2015 and 2.5% IR.

15+% RPI 2020 with 9+% IR.

IR will not decimate HPs. 'It's the economy, stupid'

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With all this inflation appearing, when is Merv gonna get a grip and raise rates??

I do wonder, if nothings done and heads contiune to get buried in sand, what Cameron will say in response to £10 loafs of bread.

Maybe he'll advise the public to only have one slice of bread a week. :blink:

Wages are key. People seem to be OK with the fact that they're getting poorer while most of the white-collar thieves are getting wealthier.

As a result of that at the moment workers aren't in the mood for striking so the govt and the bankers are happy to ****** them in the **** as long as possible. (sorry for the language but I can't find a better phrase to describe the situation we're in :( )

Edited by Pole

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Wages are key. People seem to be OK with the fact that they're getting poorer while most of the white-collar thieves are getting wealthier.

As a result of that at the moment workers aren't in the mood for striking so the govt and the bankers are happy to ****** them in the **** as long as possible. (sorry for the language but I can't find a better phrase to describe the situation we're in :( )

But how much longer are they going to take up the **** when even Merv was saying inflation will remain above target until well into next year? Eventually they're going to start seeing wage freezes for what they are, pay cuts, and start asking questions/getting angry/striking.

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Under Labour, the fundamental and long-standing link between The BoE base rate and inflation was abandoned. This in turn led to the balance of consumer borrowing and saving to be abandoned, too, hence the situation whereby you now have typical mortgage fixes at around 5%, but you'll be lucky to get 2% on your savings.

I don't see that balance being restored anytime soon (i.e. the base rate rising to a level that reflects inflation) unless the BoE's hand is forced by a run on the pound, principally because of the imbalance built into the housing market. We've all seen the anecdotal evidence of those ubiquitous 'hard working families' who are only just keeping up the SVR payments on their IO mortgages. A significant rate hike followed by five or six million of those going into mortgage arrears could be enough to provoke another full-blown banking crisis, would be my guess. With the CGT hike on BTLs and the reduction in mortgage interest benefit and housing benefit, I get the impression that the new government are looking to unwind this situation slowly, without risking a single, fatal shock to the system. This is yet another one of the many negative effects of the housing bubble.

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I guess the OP hasnt taken out a loan recently.

Or gone into overdraft unexpectedly.

course, the big turnover stuff, like mortgages are at around 5% for Mr Perfick.

and needing 20% money in the game yourself sucks quite a bit of spending out of the economy too.

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5% inflation is just a blip, a 20 year long blip, a blip to slowly inflate our debts away...

So far Merv is getting away with it, with both the market and populous.

You can't inflate debt away without WAGE inflation.

Plenty of price inflation at the moment. The only flation affecting wages is deflation.

Rates can't be lowered any further.

There is nowhere for them to go. The powers that be are now like King Canute - commanding the economy to recover but with no tools to make it happen.

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Eventually they're going to start seeing wage freezes for what they are, pay cuts, and start asking questions/getting angry/striking.

We've had 20 to 30 years of effective pay cuts. Wages for semi-skilled jobs have been static for almost a generation now.

It's been mitigated by more and more people working (i.e. both people in a marriage or partnership) and by the relatively low interest rates over the last 13 years.

Now, there is nowhere left to go.

People won't get angry or strike. What power do unions have now? We have bred a generation of sheep - maybe it's been semi deliberate. Maybe it's the fluoride in the water. Who knows? There is something different. In the 1960s people - workers and students - would strike or riot at the drop of a hat.

In France, if students were treated as ours are treated, they'd burn Paris to the ground.

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We've had 20 to 30 years of effective pay cuts. Wages for semi-skilled jobs have been static for almost a generation now.

It's been mitigated by more and more people working (i.e. both people in a marriage or partnership) and by the relatively low interest rates over the last 13 years.

Now, there is nowhere left to go.

People won't get angry or strike. What power do unions have now? We have bred a generation of sheep - maybe it's been semi deliberate. Maybe it's the fluoride in the water. Who knows? There is something different. In the 1960s people - workers and students - would strike or riot at the drop of a hat.

In France, if students were treated as ours are treated, they'd burn Paris to the ground.

I think it's a mixture of bad education and low self esteem. People don't realise they're getting screwed over because today's problems are explained away as being a 'Global Phenomenon' which was 'Totally Unexpected' and any attempts at uprising are demonised in the media as being the work of 'Greedy Unions', 'Violent Anarchists' and 'The Great Unwashed' before the riot police crush it into the ground.

It's only temporary of course, if people feel they've nothing left to lose they won't care who to blame, they'll just want to riot out of frustration and anger.

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We've had 20 to 30 years of effective pay cuts. Wages for semi-skilled jobs have been static for almost a generation now.

It's been mitigated by more and more people working (i.e. both people in a marriage or partnership) and by the relatively low interest rates over the last 13 years.

Now, there is nowhere left to go.

People won't get angry or strike. What power do unions have now? We have bred a generation of sheep - maybe it's been semi deliberate. Maybe it's the fluoride in the water. Who knows? There is something different. In the 1960s people - workers and students - would strike or riot at the drop of a hat.

In France, if students were treated as ours are treated, they'd burn Paris to the ground.

Governments have squeezed the working people dry and they have nothing more to give. They are also sickened by the amount of scum , scroungers that both governments have created which has sapped the life out of a person that has to work for a living. We have a generation of the new speek, they have all the new phrases, know about racism and political correctness but they have no substance or realism. They were quite happy as long as they had their little overpriced box to live in, they were conditioned and now they are screwed. Government know how to control the people , that is get them hooked on greed, plenty of money and posessions and they will toe the line. When you take all that away then they will know they we part of a big con.

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There is nowhere for them to go.

But do they want to go anywhere? Bonuses and banks' profits are sky high. So, where's the problem??

As long as the masses are busy boozing&watching football... Oh, wait the crap-factor is about to start again and the one show has got new presenters. And after all the BBC says that inflation is clearly dropping at a staggering rate of 0.1%.

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Governments have squeezed the working people dry and they have nothing more to give. They are also sickened by the amount of scum , scroungers that both governments have created which has sapped the life out of a person that has to work for a living. We have a generation of the new speek, they have all the new phrases, know about racism and political correctness but they have no substance or realism. They were quite happy as long as they had their little overpriced box to live in, they were conditioned and now they are screwed. Government know how to control the people , that is get them hooked on greed, plenty of money and posessions and they will toe the line. When you take all that away then they will know they we part of a big con.

The proles don't care.

The proles only concern is if they don't have any money the state will support them.

That is why austerity is a sham. The state know they have to keep the proles fed, medical fees paid, and housed and they will not revolt - this is their biggest costs and none of this will get cut in fact it will increase.

This policy also attracts proles from other countries that do not provide food, medical and shelter so easily.

The state fears revolt - and if it to come it will be from the Proles. So taking care of them is job number one.

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You can't inflate debt away without WAGE inflation.

Plenty of price inflation at the moment. The only flation affecting wages is deflation.

Rates can't be lowered any further.

There is nowhere for them to go. The powers that be are now like King Canute - commanding the economy to recover but with no tools to make it happen.

Exactly. I used to think inflating debts away might work, but now I realise it won't, because we import so much stuff. Retail prices rise, but the government tax take and our wages don't. We still can't pay off those debts.

King Canute was no fool - he knew he couldn't command the waves and did so to prove as much to his servants. I'm still not sure about King Mervyn.

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IRs will go up when we see some sustained growth. There was talk a while back about ditching the 2% inflation target for a target that combines inflation and growth (not sure what came of it). After all it's hard to justify putting up IRs when there's no growth, regardless of whether inflation is above target. In fact high inflation during a period of low growth almost justifies keeping interest rates low, since it acts to cool the economy (I'm sure i'll be popular for saying that ;) )

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You can't inflate debt away without WAGE inflation.

Plenty of price inflation at the moment. The only flation affecting wages is deflation.

Rates can't be lowered any further.

There is nowhere for them to go. The powers that be are now like King Canute - commanding the economy to recover but with no tools to make it happen.

Rubbish.

The government policy is to inflate their debts away. That is what they are doing.

Yes rates can be lowered on mortgages. By paying a portion of the Proles mortgage the state can lower their rate to whatever they want. The Proles don't care what rates are, they only care about the mortgage payment, and that can be fiddled at will by the state.

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Rubbish.

The government policy is to inflate their debts away. That is what they are doing.

Yes rates can be lowered on mortgages. By paying a portion of the Proles mortgage the state can lower their rate to whatever they want. The Proles don't care what rates are, they only care about the mortgage payment, and that can be fiddled at will by the state.

you really are full of crap. the government is not inflating debt away because the broad money supply has not been increasing. There won't be any inflating debts away without an increase in broad money. period. it doesn't matter how low rates are - unless the money supply gros the value of debt remains the same or greater than it was.

you have no idea what you are ranting about.

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you really are full of crap. the government is not inflating debt away because the broad money supply has not been increasing. There won't be any inflating debts away without an increase in broad money. period. it doesn't matter how low rates are - unless the money supply gros the value of debt remains the same or greater than it was.

you have no idea what you are ranting about.

More claptrap and misinformation from the foolish on this website.

http://online.wsj.com/article/NA_WSJ_PUB:SB10001424052748704103904575336264180459790.html

LONDON—The Bank of England's preferred measure of broad money supply growth picked up to a near three-year high in May, but lending to households and businesses marked their lowest annual rates in decades.

Edited by Mr. Spin esq.

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You can't inflate debt away without WAGE inflation.

Plenty of price inflation at the moment. The only flation affecting wages is deflation.

How long do you think wage inflation can stay down? There is going to come a point when people demand more money to pay for the £5 loaf of bread that we'll be facing. We are already seeing strikes over pay and if food continues to go up then I'll expect to see more.

I thought this was Merv's grand plan anyway? Trash the currency, keep inflation high, ultimately force wages higher, debt is devalued, house prices stay high, savers get screwed, problem sorted.

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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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