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jplevene

Interest Rates Will Never Rise While Boe Have Control

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First, please excuse spelling mistakes, on holiday and using an Eastern Europe keyboard with funny symbols to type English and every word is shown as a spelling mistake.

The BOE will never rasie Interest rates as if they do before the economy has recovered substantially, they would be saying that for the past 18 months (or 3 1/2 years by 2012) they were wrong to have rates so low.

Rates are low as the BOE say it will help a recovery, it is actually doing the opposite (see my post http://www.housepricecrash.co.uk/forum/index.php?showtopic=148707&st=0&p=2656999&fromsearch=1entry2656999). These people have nobody to answer to, lets remember they are unelected Blair Quangos, and their only concern, as with every Quango, is how their actions effect them. If they have to raise rates before a recovery, esspecially if the rate rise causes a recovery, they will all be discredited and not be able to cash in on being the martyrs who saved England. Eventually the UK will recover, probably not due to their actions as a recovery after 3 1/2 years is pretty much a sure thing, something they can say was down to their actions (even though it would not be). These are the same people who signed an open letter to Margret Thatcher saying she was wrong to raise rates, yet her actions caused the economy to recover the following day. To make the same mistake twice, they would find it hard to get a job at McDonalds, let alone a top bank after they leave the commitee.

Their main purpose is to control inflation using interest rates, inflation is high, yet interest rates are still at a record low. They say they look at 2 year forcasts, yet by Feb next year, being 2 years of 0.5%°, inflation will very high, especially due to the VAT rise in January. Mervyn King said that inflation will be within target by 2012. What planet does he live on. Every country that has hosted the Olympic games has seen substantial price rises the year of the games, why would we be any different. So after 4 years he would have got inflation constantly wrong, they can not even get the monthly figures correct.

Look at their situation this way-

Gordon Brown tells them to put rate to 0.5%, if they did not the banks would have crashed as they needed low rates to make more money. They said it was to help the economy and have stuck to this propeganda. The only industry it has helped is investment banking who are making record profits while every other industry suffers.

It was probably expected that 0.5% would in the short term cause a recovery and interest rates would be able to go back to normal, well that did not happen.

Now they are stuck, they have said 0.5% will cause a recovery, which it has not, and any change of policy would be saying, "sorry we were wrong and we unelected Quangos who answer to nobody were wrong and set the country recovery back by a few years". The press would go wild, labeling them all fools, making it impossible for them to get lucrative jobs after the BOE, which they would need as the Government would be forced to take back control of the Interest Rates.

It is very serious when the BOE get their forcasts wrong and even worse when they give us high inflation, as investors do not want to lend or invest in England.

If by February 2011 their inflation prediction from Feb 2009 is substantially wrong, for the sake of the UK, get rid of those useless Qangos at the BOE and lets not beleive any more excuses from them. The credibility of the entire UK would be at stake and even investment banking would start to suffer as well.

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Who knows, but I wouldn't like to wager on the side of the BOE. They have painted themselves into a corner.

Soros was the man that Broke the Bank of England. It's a traders paradise out there. There are many other vultures out there now who really don't care if they can break the BOE again, if there's tons of money to be made.

God forbid we'd have to sell our last remaining gold to stem the tide.

Edited by Money Spinner

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Who knows, but I wouldn't like to wager on the side of the BOE. They have painted themselves into a corner.

Soros was the man that Broke the Bank of England. It's a traders paradise out there. There are many other vultures out there now who really don't care if they can break the BOE again, if there's tons of money to be made.

God forbid we'd have to sell our last remaining gold to stem the tide.

Soros versus a bunch of BOE QUANGOS, I know who I would bet on winning again (Soros if you hadn't guessed).

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re rates at .5%.

I for one would be very interested to see a chart of how much mortgage repayments have fallen in total because of trackers, SVR's being reduced verus the amount of money savers have lost due to getting 2.49% (the rate that IF pays on it's standard savings rate).

Seeing as we are a massively indebted population mainly with mortgage debt I would wager that the stimulus to the economy thorugh lower mortgage repayments has been massive compared to the loss of interest of savings.

Something that the Yanks have not been able to replicate becuase they all have fixed rate mortgages.

BoE = House Price Plunge Protection Team.

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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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