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RichM

Gordon Brown's Luck Has Finally Run Out

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Gordon Brown's luck has finally run out

This point he makes clarifies something I had often wondered about - the MPC's primary task is to keep inflation under wraps:

In the circumstances, you would have thought that the members of the monetary policy committee - who, remember, have a legal duty under the Bank of England Act primarily to target inflation and not growth - would be on their guard, ready to smite it hip and thigh. But they actually cut interest rates last month as five of their number ganged up to outvote the Governor, Mervyn King.

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Oh dear. Are rates going up or down?...decisions, decisions.

A rate cut in my opinion will not help the housing bulls. Average Joe is maxed out on credit, and those that aren't are too busy worrying abour losing their jobs.

Edited by Pluto

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Hmm,

a similar thought crossed my mind a while back - that HPI

was a proxy for general inflation, being used thriguh the

medium of artificially low IR (wittingly or not) as a store

for excess money supply.

The inflation is ultimately felt by owners , and sooner or

later tenants, but never shows up in the CPI

ABB

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i think the countrys maxed out as mentioned above. like a fat boy whos had too much cake. even the fattest of boys cannot manage another piece. despite the extra icing.......

i think its time to wash up.

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Gordon Brown's luck has finally run out

This point he makes clarifies something I had often wondered about - the MPC's primary task is to keep inflation under wraps:

Just heard Peter Spencer of the Item Club on Today hint that the inflation target would have to rise if inflation continued rising. He's pretty close to the Treasury so it gives a good hint of where things are going!

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Rules are made to be broken & it would be a shame to let tens of thousands or even hundreds of thousands of people lose their jobs for the sake of following rules too strictly.

And the BOE is charged with a much more important role than IR's, they are charged with maintaining the stability of the British banking system.

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Guest KingCharles1st

Gordon Brown is in the shit, and he knows it- but he won't come clean or ask for help. Just like the millions who get into a debt spiral because they can't admit failure- ho hum...

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How did they vote last time?

I think the minutes of the last meeting are out on Wednesday. Blimey, what a kick in the nuts to anyone saving. When you think of it, Brown has really cocked things up. Industry leaving, taxes going up, pensions raided and ruined, young well and truly screwed by HPI, debt and Uni fees. Even Nigel Lwason couldn't have made a bigger mess!

:rolleyes:

I think Brown will be looking for an escape route to No. 10 pretty soon

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Guest Riser
The British economic tiger is suddenly looking rather mangy and won't do tricks any more when circus master Brown cracks his whip. Inflation has risen to its highest level for nine years and there is now a dangerous split on the monetary policy committee of the Bank of England which shows all the signs of degenerating into an unseemly row

Brown has been feeding the tiger on a mixture of speed, cakes ,and red bull for so long with artificially low interest rates it is now fat and psychotic, either the MPC put it on a diet and give it the time it needs to recover or it will have a heart attack and die. Brown should be banned from looking after any other animals.

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Brown has been feeding the tiger on a mixture of speed, cakes ,and red bull for so long with artificially low interest rates it is now fat and psychotic, either the MPC put it on a diet and give it the time it needs to recover or it will have a heart attack and die. Brown should be banned from looking after any other animals.

Superb analogy! :D

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If GB or the BoE change the rules about inflation then they will be a complete laughing stock. Perceptions of all UK debt, growth, "prudence", will be thrown into disarray.

If they do this then it is a sign that we are truly b#ggered.

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If GB or the BoE change the rules about inflation then they will be a complete laughing stock. Perceptions of all UK debt, growth, "prudence", will be thrown into disarray.

If they do this then it is a sign that we are truly b#ggered.

It will be a true indication of what they have become - spin masters led by political concerns and not long term economic concerns.

When people wake up and realise how they have been made poor by their actions and not rich and that their financial futures are reliant on revenue and jobs from companies which are offshoring or folding due to high costs maybe people will then begin to realise the folly of the last few years.

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Just heard Peter Spencer of the Item Club on Today hint that the inflation target would have to rise if inflation continued rising. He's pretty close to the Treasury so it gives a good hint of where things are going!

More likely he'll announce a switch back to using RPI which is now lower that CPI thanks to falling house prices.

Difficult politically but the media will support the move as IMO a large proportion of journalists and media types have BTL portfolios and don't want to see IR rise anymore than Brown.

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Rules are made to be broken & it would be a shame to let tens of thousands or even hundreds of thousands of people lose their jobs for the sake of following rules too strictly.

And the BOE is charged with a much more important role than IR's, they are charged with maintaining the stability of the British banking system.

The rules aren't just there for the sake of having rules, they're there to prevent serious shocks to the economy which result in job losses and the like.

As long as the inflation measures are correct and the bank remembers its remit and the chancellor doesn't allow mass behaviour to cause problems there should be no problem. Oh, hang on...

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Rules are made to be broken & it would be a shame to let tens of thousands or even hundreds of thousands of people lose their jobs for the sake of following rules too strictly.

That assumes you can have your cake and eat it and ignores the fact the rules are there for a reason, by your logic we should just set rates at 0%, print endless amounts of money and we'd live happily ever after.

When it comes to inflation and hyperinflation it's better to bite the bullet, otherwise you just bring forward the very consequences you set out to avoid, but in a much more deeper and harsher way.

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  • 302 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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