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rantnrave

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Unchanged at 3-0-6 despite the fall in inflation.

Knew I could rely on the BoE. Useful idiots. Obviously there are many others to thank for the following, but the BoE are playing their part exceptionally well...

$1505!!!

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Knew I could rely on the BoE. Useful idiots. Obviously there are many others to thank for the following, but the BoE are playing their part exceptionally well...

$1505!!!

The MPC affects the price of gold in dollars now do they?

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Knew I could rely on the BoE. Useful idiots. Obviously there are many others to thank for the following, but the BoE are playing their part exceptionally well...

$1505!!!

If you don't hold any store by fiat currencies, why do you salivate over the number of dollars you'll get for your gold?

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Every excuse for not raising rates is used despite inflation being double its target. They are praying that other central banks are going to do their job for them and commodities will fall in price.

People should get used to the stagflation we are in as we are going to be in this situation for along time.

I am afraid the BofE are bailing out the banks and the inprudent as they know that if rates are set to meet their inflation target the housing market which drives our consumer economy is toast.

I expect a token .25 rise at the end of the year.

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Every excuse for not raising rates is used despite inflation being double its target. They are praying that other central banks are going to do their job for them and commodities will fall in price.

People should get used to the stagflation we are in as we are going to be in this situation for along time.

I am afraid the BofE are bailing out the banks and the inprudent as they know that if rates are set to meet their inflation target the housing market which drives our consumer economy is toast.

I expect a token .25 rise at the end of the year.

+1

A token rise should buy another 6-18 months of sitting on their hands in the hope the whole economy doesn't go up in smoke.

When we get to the end of this journey same people may conclude that nothing as changed and that we are still in the same position we were back in 2007.

Some parts of the world are cracking on with their HPC irrespective of government fiddling, not good old Blighty, our elephant is still sitting in the room being stared down by idiots who believe house prices only ever go up. Sadly they are proving right since the government is backing them all the way be robbing the prudent and forcing the young into slavery.

Edited by MrFlibble

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If you don't hold any store by fiat currencies, why do you salivate over the number of dollars you'll get for your gold?

There are two components to the price increase in precious metals, one is the nominal increase, caused by inflating the money supply. This merely protects wealth held in precious metals. The other is the real increase, caused by more wealth flowing into the precious metals market to escape inflation.

Therefore any immediate rise in the gold price in $ is a good thing for gold holders, even if the dollar is ultimately toast.

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The MPC affects the price of gold in dollars now do they?

A component of it yes. Sterling is a major currency, the weaker sterling is the more holders of sterling are likely to convert into gold, driving the price higher in sterling and other currencies alike - pure supply and demand.

I used the dollar price because it has broken $1500. The BoE have played their part in this increase through improving international demand for gold through negative real interest rate policy.

I put it big and red because, if you didn't know, I am aping Realist Bear's $1378 big red letter top calling statement of a few weeks back.

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There are two components to the price increase in precious metals, one is the nominal increase, caused by inflating the money supply. This merely protects wealth held in precious metals. The other is the real increase, caused by more wealth flowing into the precious metals market to escape inflation.

Therefore any immediate rise in the gold price in $ is a good thing for gold holders, even if the dollar is ultimately toast.

Really?

The money supply has been neutral at best, if anything QE and its off-spring have only balanced the explosive deflation experienced 2007 / 08.

Gold et al are showing all the classic signs of bubble economics. Slow, steady gains create stable markets, massive leaps does not. You can see it in House prices, why not gold?

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Really?

The money supply has been neutral at best, if anything QE and its off-spring have only balanced the explosive deflation experienced 2007 / 08.

Gold et al are showing all the classic signs of bubble economics. Slow, steady gains create stable markets, massive leaps does not. You can see it in House prices, why not gold?

Spot on :lol:

I'd be running for the hills if I owned gold now...it will collapse in price long before the FIAT currencies do. Even if it doesn't and the pound collapses and is worthless ( as opposed to worth less ) then no one's going to trade you for it, they will want food and fuel. If you try and trade with the big boys they'll shoot you and take your gold. Sell the yellow stuff now and buy a good chunk of land, be done with the speculating and get on with your life.

Edited by TheCountOfNowhere

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Spot on :lol:

I'd be running for the hills if I owned gold now...it will collapse in price long before the FIAT currencies do. Even if it doesn't and the pound collapses and is worthless ( as opposed to worth less ) then no one's going to trade you for it, they will want food and fuel. If you try and trade with the big boys they'll shoot you and take your gold. Sell the yellow stuff now and buy a good chunk of land, be done with the speculating and get on with your life.

Nah, GC wouldn't do that... by now he couldn't survive without spamming HPC with about 30 self-congratulatory gold posts per day, regardless of the topic actually being discussed :lol:

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Spot on :lol:

I'd be running for the hills if I owned gold now...it will collapse in price long before the FIAT currencies do. Even if it doesn't and the pound collapses and is worthless ( as opposed to worth less ) then no one's going to trade you for it, they will want food and fuel. If you try and trade with the big boys they'll shoot you and take your gold. Sell the yellow stuff now and buy a good chunk of land, be done with the speculating and get on with your life.

+1

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No surprise here I am afraid, interest rates are not going to increase significantly any time soon, especially with Andrew Sentance due to be leaving the MPC at the end of next month. For some reason, the BoE still has the confidence of the markets.

Edited by Left the UK 2009

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There are two components to the price increase in precious metals, one is the nominal increase, caused by inflating the money supply. This merely protects wealth held in precious metals. The other is the real increase, caused by more wealth flowing into the precious metals market to escape inflation.

Therefore any immediate rise in the gold price in $ is a good thing for gold holders, even if the dollar is ultimately toast.

That depends on your rationale for holding gold.

Mine is for insurance.

The fact that it looks increasingly like my house is burning down (as a metaphor only) and that it was a good idea to buy insurance when it was cheap is bad news rather than good news.

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Unchanged at 3-0-6 despite the fall in inflation.

I know he's not on the MPC any more but Blanchflower always advocated lower interest rates which would have caused the bubble to inflate further and would have caused bigger problems. I think recent history proves this.

Since his retirement from the MPC, it has become obvious he is a left winger and advocates Labour. What was his modus operandi when on the MPC? It would appear his reasoning was destructive, but what end result was he after? I'd love one of these left thinkers to come forward and tell the truth. Be interesting to know how his mind really works.

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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% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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