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Letter From King To Osborne And Osborne's Reply

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Summary:

- Remember what I told you last time ? Same applies

- Inflation is going to go up at least until next year

- It's all going to plan

"That risk could be exacerbated if growth in

the economy is weaker than expected, for example if household saving is higher than expected."

Guess what, put interest rates up and savers will have something to spend

Edited by exiges

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There is a great deal of uncertainty about the medium-term outlook for inflation. And I do not wish to conceal that there are real differences of view within the Committee, reflecting different judgements about the risks to that outlook.

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Or to Paraphrase.

Dear Mr. osborne, I'm making up excuses to avoid putting up interest rates so my friends in the city continue to fleece the rest of the country in order to save their own necks, is that okay with you ?

Dear Merv. That's fine.

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"The MPC judges that attempting to bring inflation back to the target quickly risks generating undesirable volatility in output and would increase the chances of undershooting the target in the medium term."

OMG, just imagine if it went slightly the other side of the 'target'. :o

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FROM GO`s reply

I also note,however,that the committee continues to believe inflation will fall back in 2012 with equal chances it could be above or below target

Is he saying you don't know what the feck your talking about :unsure:

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Dear Comrade Osborne,

I am pleased to report more positive news regarding tractor production at our facility in Omsk. Although we are currently experiencing an output gap due to temporary external factors (see my previous letters describing the unexpected workers' riots, the unexpected steel shortage, and the unexpected fires in the tyre warehouse), my Committee will continue to pursue its objective of stable tractor production in the medium term.

I do not wish to conceal that there are real differences of view within the Committee regarding the prospects for future tractor production. In unrelated news, Comrade Sentance will soon be starting his 125 year sabbatical in the Novosibirsk salt mines, and I am sure you will join the rest of us in wishing him well.

The best contribution our factory can make to high and stable levels of glory for the People is to ensure tractor production stability over the medium term. No one should be in any doubt that when the future of our great Nation requires it, every member of the Committee is determined to act to adjust policy in order to restore tractor production to our Workers' Paradise.

Yours sincerely,

Merv

Dear Comrade Merv,

Fine by us, keep up the good work.

Love,

George

Edited by Dorkins

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As a layman in this area have I got this correct?

You have a target (2%) but when you exceed that target (4%) you just remove the item(s) which took you over the original target to bring you back in under target, then call it a success? I assume that if they were well under target they wouldn't be adding anything back on, instead opening the champagne and patting each other on the back?

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FROM GO`s reply

I also note,however,that the committee continues to believe inflation will fall back in 2012 with equal chances it could be above or below target

Is he saying you don't know what the feck your talking about :unsure:

I read that as a 'clever' misinterpretation. King says it will be very high in 2011, but less high in 2012 - and eventually equal chances of being above and below target. This makes a lot of sense to me... it says that increasing rates to stem inflation at target would cause economic collapse and a huge undershoot... but that other constraints (no wage rises) should limit inflation after a while.

Osbourne 'notes' something that wasn't stated... i.e. that the target is equally likely to be over as under shot in 2012 - or, in other words that he rejects the BOE's wish to only aim for the target eventually. This allows any disaster to be pinned on miscommunication - not policy. Clever move...

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As a layman in this area have I got this correct?

You have a target (2%) but when you exceed that target (4%) you just remove the item(s) which took you over the original target to bring you back in under target, then call it a success? I assume that if they were well under target they wouldn't be adding anything back on, instead opening the champagne and patting each other on the back?

You got it.

It's akin to saying a hospital's mortality figures look really good when you take out all the deaths due to infections and botched operations.

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I can hardly believe my eyes. King admits that inflation has been above target for god knows how long but expresses a paranoid fear that it 'could possible fall below target' in the medium term. He may as well say that the inflation target is burning in hell. His aim is destruction of savings. He despises the prudent and wants to lynch them.

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"Dear George,

Sorry about inflation being 100% higher than the target you set me

"Dear Merv

Dont worry Merv sxit happens, by the way what was that nice red wine called we had at the bankers do last night

Edited by papag

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Osborne,

It looks like we are going to get away with it. No matter how high inflation goes and how much we steal from the public, it looks like they are just going to accept it.

If you get any flack about it just brush it aside and keep thinking of the rewards you will get when you leave office. Bob and his chums are going to get a good few quid this year and don't worry they won't forget about you. Tony is raking it in.

Can I just reiterate how important it is for you to get as many media stooges as possible to keep saying that the inflation is due to "temporary factors" LOL. Could you also try quash any media articles about Executive pay? If the plebs start asking for pay rises it will hinder profits, so the chaps will have to cut costs and sack more. I know you can always fiddle the unemployment figures but let us try keep it simple.

Merv

###

Merv,

Well done again.

Yes it's amazing how thick the UK population is as a whole. They have definitely swallowed the "temporary factors" ******** and do not realise their money is being stolen every day. We are always clamping down on any stories about Executive pay as we don't want the plebs to see why prices are really rising. We will continue to try focus it on banker's pay because the public seem to really believe they need the banks.

It's amazing how much money you can steal, when you have a private business owned by unknown shareholders protected by the Official Secrets Act, in charge of a country's money supply.

I am proud to be in such a good position to help the financial elites and am already looking forward to leaving office, by which time I will definitely have redistributed lots of public money to us. You are right Tony is doing really well. He has set me and Dave a good target but I'm sure we will be able to beat it. I've already had lots of "thanks" for my Corporation Tax heist of the century.

Osborne

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Dear Comrade Osborne,

I am pleased to report more positive news regarding tractor production at our facility in Omsk. Although we are currently experiencing an output gap due to temporary external factors (see my previous letters describing the workers' riots, the steel shortage, and the unexpected fires in the tyre warehouse) my Committee will continue to pursue its objective of stable tractor production in the medium term.

I do not wish to conceal that there are real differences of view within the Committee regarding the prospects for future tractor production. In unrelated news, Comrade Sentance will soon be starting his 125 year sabbatical in the Novosibirsk salt mines, and I am sure you will join the rest of us in wishing him well.

The best contribution our factory can make to high and stable levels of glory for the People is to ensure tractor production stability over the medium term. No one should be in any doubt that when the future of our great Nation requires it, every member of the Committe is determined to act to adjust policy in order to restore tractor production to our workers' paradise.

Yours sincerely,

Comrade Merv

Dear Comrade Merv,

Fine by us, keep up the good work.

Love,

Comrade Osborne

:lol::lol::lol:

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Well at least today's Chinese inflation figures aren't too bad. In comparison they seem to be doing a fairly good job keeping their inflation in their target zone.

According to the London Capital Group.

"Chinese inflation numbers have come out lower than expected but at 4.9% which is above their central bank’s target of 4%. This has gone some way to placate markets which were expecting a number well above 5%, but this probably won’t mean an end to the tightening from the Chinese who are likely to continue raising rates on top of the three hikes they’ve made in recent months."

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Or to Paraphrase.

Dear Mr. osborne, I'm making up excuses to avoid putting up interest rates so my friends in the city continue to fleece the rest of the country in order to save their own necks, is that okay with you ?

Dear Merv. That's fine.

Alternatively,

Dear George, we ain't got a bleeding clue.

Dear Merv, neither have we.

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  • 311 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% +
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