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campervanman

Ir's To Rise Over The Next 2 Years

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http://www.ft.com/intl/cms/s/0/f9f2e146-831c-11e0-85a4-00144feabdc0.html#axzz1My7fV0Uk

Increasingly the mindset is changing in that more damage is being done through low rates and high inflation than putting up rates and squeezing the overborrowed.

The bankrupt of england are playing good cop bad cop. They have no intention of swerving away from their inflate at all costs policy and will only be buged with an outright crash of the currency. Hence the mutings about being onthe edge of tacklling inflaion - which I doubt they ever will.

ALL their pensions are hedged against inflation in a common TIPS bucket. The more they create the better their pensions will do.

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http://www.ft.com/in...l#axzz1My7fV0Uk

Increasingly the mindset is changing in that more damage is being done through low rates and high inflation than putting up rates and squeezing the overborrowed.

Is it?

Certainly we get the odd story hear and there advocating a change of policy (or resumption of following policy!) but the BoE remains vigilant and sit on their hands.

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The game is rigged.

"There's a game out there, and the stakes are high.

and the guy who runs it figures the averages all day long, and all night...

Once in a while he let's you steal a pot,

but if you stay in the game long enough, you've got to lose,

and once you've lost, there's no way back...

No way at all..."

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They'll be no rate rise until the wealth of the savers has been effectively transferred to the borrowers.

We are all buying a house whether we like it or not, as in this land of ponzi finance we have no sodding choice.

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No need to raise rates now.

They have got the MSM to put out so much propaganda that rate rises are evil because the poor debtors are still struggling even though they are having saver's income diverted to them. Negative real interest rates are accepted.

A rate rise now isn't expected until early next year but the oil price has dropped recently and the Jan 2011 VAT rise will have worked through by early 2012.

It's job done, no rise for years but to try hold onto saver's cash so they can steal what was their interest income, they will keep mentioning a rise is coming. They draw straws on the MPC and the short straw is the one who has to give a speech to pretend a rate rise is coming even though they all know there is absolutely no chance.

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They'll be no rate rise until the wealth of the savers has been effectively transferred to the borrowers.

I wonder if the recent NS&I over-inflation savings account was a way for the govt to deflect complaints that savers are losing out as a result of ZIRP, and allow themselves to keep rates low for longer.

Sure, you can only save £15k in these accounts, but that'll account for a large percentage of savers, and anyone with more, well "they're the rich and can afford to lose money"

Edited by exiges

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I wonder if the recent NS&I over-inflation savings account was a way for the govt to deflect complaints that savers are losing out as a result of ZIRP, and allow themselves to keep rates low for longer.

Sure, you can only save £15k in these accounts, but that'll account for a large percentage of savers, and anyone with more, well "they're the rich and can afford to lose money"

good post

also the ones with over 15k will more often be elderly - and the argument, explicitly styated by Charles Bean of the MPC, was that they had gained from high house prices so they could afford to lose from low interest now

elegant, really, making this available effectively to the younger

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good post

also the ones with over 15k will more often be elderly - and the argument, explicitly styated by Charles Bean of the MPC, was that they had gained from high house prices so they could afford to lose from low interest now

elegant, really, making this available effectively to the younger

I agree. As I said on one of the many NS&I threads:

"I believe RPI certs were originally introduced in the 80s and termed 'Granny Bonds', as they were only available to pensioners. So I think they're mainly conceived to assuage the guilt of the money printers. A nod from the remaining patrician elite to offer decent people a small degree of protection."

In other words I don't think they brought them back because real interest rates about to go positive. They're just an olive branch to savers.

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http://www.ft.com/intl/cms/s/0/f9f2e146-831c-11e0-85a4-00144feabdc0.html#axzz1My7fV0Uk

Increasingly the mindset is changing in that more damage is being done through low rates and high inflation than putting up rates and squeezing the overborrowed.

:lol:

They will not increase in any meaningful way till at least 2036. And we'll tip into hyper before that.

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Mr Dale noted that at the time of the Bank’s inflation report this month, financial markets were betting on a quarter point rise in official interest rates this year to 0.75 per cent, followed by rises of 1 percentage point a year over the following two years.

On these expectations, interest rates will climb gradually to 3 per cent by spring 2014, hurting many borrowers but also suggesting that some relief for savers may be on the horizon.

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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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