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Bradbury Robinson

David Blanchflower...

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David Blanchflower was on Radio 5 Live this morning:

http://www.bbc.co.uk/programmes/b01040gn (He's on in the first section.)

I can't remember the details but savers just have to bend over and take it, it's for the children! Inflation is good as it gets rid of the government debt and helps out the indebted and those in negative equity. Everything that affects inflation is out of the BOE's hands, unless it's in a good way, then they'll take the praise!

As a related question, if everything that seems to affect inflation is out of their hands, imported inflation, VAT rises, etc., what is the point of them in the first place?

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David Blanchflower was on Radio 5 Live this morning:

http://www.bbc.co.uk/programmes/b01040gn (He's on in the first section.)

I can't remember the details but savers just have to bend over and take it, it's for the children! Inflation is good as it gets rid of the government debt and helps out the indebted and those in negative equity. Everything that affects inflation is out of the BOE's hands, unless it's in a good way, then they'll take the praise!

As a related question, if everything that seems to affect inflation is out of their hands, imported inflation, VAT rises, etc., what is the point of them in the first place?

Why does the BBC wheel out Danny Blanchflower when they want an "opinion" on the UK Economy? The asshole was on the MPC during the "Brown" years and helped Cyclops driving the country to the brink of banrkuptcy by indebting everyone and their dog! And his solution to the crisis is? Yes, print more money. Give more heroin to the heroin addict. The concentration of idiocy is strong on this one.

he was on Radio4 at around 7.30, interviewed by a drone.

I am ******ing angry when I listen to that ****

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Inflation doesn't get rid of all govt debt. In fact in some areas of spending inflation will be a massive budgetary problem.

oh yes it does, it makes OLD debt cheaper.

however, our footballing friend fails to mention that without government cuts...NEW loans need to get bigger...and bigger...and bigger.

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Why do UK interest rates not affect imported inflation.... the world markets are priced in American dollars... the world market now includes lots of pesky folk in the 3rd world who can afford to by the same things we want. VAT is a government imposed tax.. the government know raising it is an inflationary measure but don't care.

Blanchflower has been right about youth unemployment, right about very low growth, right about just how fragile the UK economy still is 3 years after the banks went BANG...

Blanchflower says things which upset savers.. if it ain't "a decent rate of interest for hard working savers" people don't want to listen.

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Inflation doesn't get rid of all govt debt. In fact in some areas of spending inflation will be a massive budgetary problem.

...things get more expensive, costs rise....debt may be eroded, but more debt is taken on to compensate ....businesses suffer, people spend less...a little inflation is healthy, higher than that brings with it more problems....fine for those with a secure source of income with increments paying rpi each year.....for the rest inflation is bad. ;)

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Why do UK interest rates not affect imported inflation.... the world markets are priced in American dollars... the world market now includes lots of pesky folk in the 3rd world who can afford to by the same things we want. VAT is a government imposed tax.. the government know raising it is an inflationary measure but don't care.

Blanchflower has been right about youth unemployment, right about very low growth, right about just how fragile the UK economy still is 3 years after the banks went BANG...

Blanchflower says things which upset savers.. if it ain't "a decent rate of interest for hard working savers" people don't want to listen.

no, he's suggesting to cure a debt problem with more debt. Can't do when the saturation point has already arrived.

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Why do UK interest rates not affect imported inflation.... the world markets are priced in American dollars... the world market now includes lots of pesky folk in the 3rd world who can afford to by the same things we want. VAT is a government imposed tax.. the government know raising it is an inflationary measure but don't care.

Blanchflower has been right about youth unemployment, right about very low growth, right about just how fragile the UK economy still is 3 years after the banks went BANG...

Blanchflower says things which upset savers.. if it ain't "a decent rate of interest for hard working savers" people don't want to listen.

Blanchflower should know all about youth unemployment he and his ilk were creators of a lot of it by their vocal support pushing for migrant labour to displace labour in this country.

Hypocritical little shit that he is.

Edited by OnlyMe

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he was on Radio4 at around 7.30, interviewed by a drone.

I am ******ing angry when I listen to that ****

Yep, I heard that too. She also mentioned "yesterday's fall in the cost of living"

There aren't enough rolling eye smiles.

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Hypocritical little shit that he is.

On that we can agree. I feel certain that there's a story worth telling about Blanchflower, though I don't know what it is. He always seemed the most reckless pundit, and for some reason he was nominated to influence monetary policy directly... I wish I knew how that came about. When he sat on the MPC, I often wondered if he was actually a stooge for some US corporate interest.

Edited by A.steve

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On that we can agree. I feel certain that there's a story worth telling about Danny B, though I don't know what it is. He always seemed the most reckless pundit, and for some reason he was nominated to influence monetary policy directly... I wish I knew how that came about. When he sat on the MPC, I often wondered if he was actually a stooge for some US corporate interest.

Other central banks need to be as reckless as the FED so that the FED does not stand out like a sore thumb. This country's economy has been run for the last decade for the benefit of others.

Posen replaced Blanchflower.

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Blanchflower should know all about youth unemployment he and his ilk were creators of a lot of it by their vocal support pushing for migrant labour to displace labour in this country.

Hypocritical little shit that he is.

I disagree. Inflated house prices = increased cost of living = two people work per household = fewer jobs available for the young.

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Yep, I heard that too. She also mentioned "yesterday's fall in the cost of living"

There aren't enough rolling eye smiles.

I'm an amateur when it comes to these things but I was wondering how having a target of 2% but inflation hitting 4% was a good thing! The BBC even rolled out their double-sized article box on the homepage!

It seemed like a bit of a politician's trick letting everybody think that 4% is a smaller number than 4.4%!

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Buying a house at the top of the market is scorned - BTL especially. Those buyers ought to get creamed and probably bankrupted.

Lending money to a bank to lend to person above and the saver ought to get an above inflation rate of return and all his money back.

Does not compute - Either you lose via inflation or you lose via default. Either way you're gonna lose.

(Unless you're Bob Diamond, obviously)

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Blanchflower should know all about youth unemployment he and his ilk were creators of a lot of it by their vocal support pushing for migrant labour to displace labour in this country.

Hypocritical little shit that he is.

Yep the man that took the free university education that this country offered him and then promptly left to use that education to educate American kids, not put back something into the country that paid for his priviledged education.

But 35,000 USD tuition fees per year, sure pays big bucks in salaries for the teaching staff.

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Yep the man that took the free university education that this country offered him and then promptly left to use that education to educate American kids, not put back something into the country that paid for his priviledged education.

But 35,000 USD tuition fees per year, sure pays big bucks in salaries for the teaching staff.

A wasted education - read it and weep.

http://www.publications.parliament.uk/pa/ld200708/ldselect/ldeconaf/82/7112708.htm

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As a related question, if everything that seems to affect inflation is out of their hands, imported inflation, VAT rises, etc., what is the point of them in the first place?

Keep up. They're going to regulate our banks. Well....the current FSA staff will be TUPEd to the BoE en masse to continue their currect excellent work :D

I've every confience in the BoE after its early detection and prevention of serious problems at Barings and BCCI

So stop slagging the bank off. It's great!

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Professor Blanchflower: In some sense it is built on work Lord Layard did with Steve Nickell many moons ago. In some sense it seems to me that we have now a very flexible labour market, able to absorb shocks and basically what we have done, to put it in Layard/Nickell—type language, is that we have improved the matching function. We have brought a group of people in who are disproportionately in work, first. Second, they are prepared to live in places that particular groups of workers here are not prepared to do. They are mobile, they are prepared to live in housing conditions that domestic workers are not prepared to live in. If you like, it has made the labour market more flexible and more adaptable and, to go back to the matching function, we better match workers to jobs. In the data it does not appear that they are actually displacing workers; they are actually doing jobs that indigenous workers cannot or will not do, because they perhaps cannot afford the housing or something. I think of it as improving the functioning of a labour market and the work from the OECD suggests that our economy is flexible enough to absorb that. I have sort of answered your question.

Basically he is a fan of slave labour. This could be Albert Speer talking to Adolf.

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Debase the currency via low IR's and QE and you end up with inflation... we import pretty much everything we consume from other countries (including oil which is priced in $) and therefore when the pound tanks everything we import gets more expensive = inflation in everything. Blanchflower's answer to that is to fill the gap with more printed money which in turn makes inflation go up again. He would continue this process until hyperinflation destroys everything in it's wake because he is a complete pr1ck with absolutely no clue.

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I'm an amateur when it comes to these things but I was wondering how having a target of 2% but inflation hitting 4% was a good thing! The BBC even rolled out their double-sized article box on the homepage!

It seemed like a bit of a politician's trick letting everybody think that 4% is a smaller number than 4.4%!

It's because having a target of 2% is daft, when all you can only affect the price of short term borrowing.

The base rate is supposed to stimulate or cool borrowing (and, to a degree, saving). That is all it does and can do. When borrowing is getting out of control, so that credit is bidding up prices, then is the time to put up interest rates, in order to avoid a credit bubble.

So why didn't they put up the base rate when house prices started to race up? The key is the short term aspect of borrowing, which the BoE can influence (in normal conditions*). Cheap long term credit was being offered by investors (many of which were foreign), which meant that hiking up the short term rate would have little affect - who would pay more for a short term loan than a long term one? Queue HPI...

IMO, the price index target should be scrapped - it is a waste of time and effort. A new credit growth target should be created instead, which is not only influenced by the base rate, but also by borrowing multiples and/or bank reserve rates. Considering that we may well be at debt saturation point, said credit growth should tend about zero**.

EDIT: Would a credit growth target keep prices steady? No, but that's a fruitless task anyway. We need only look at where it has got us, combined with the irrelevance it has become in setting monetary policy to see this.

* QE can affect longer term borrowing rates, but it is not without consequences.

** As debt saturation point depends on how liquid the markets are, this point may shift to allow more credit to be sustained. Therefore, having a static target is not optimal, but it's safer than allowing too much credit growth and having the subsequent collapse.

Edited by Traktion

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David Blanchflower was on Radio 5 Live this morning:

http://www.bbc.co.uk/programmes/b01040gn (He's on in the first section.)

I can't remember the details but savers just have to bend over and take it, it's for the children! Inflation is good as it gets rid of the government debt and helps out the indebted and those in negative equity. Everything that affects inflation is out of the BOE's hands, unless it's in a good way, then they'll take the praise!

As a related question, if everything that seems to affect inflation is out of their hands, imported inflation, VAT rises, etc., what is the point of them in the first place?

I would politely ask him to voluntarily give up his BoE and other index linked pension and settled for the 'good for the children version of pension'.

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  • 312 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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