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Inflation Is Ok: Official Line From Boe Now

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And the next bank crash fall guy ... 'It all started in the Eurozone'.

"Charlie Bean, also warned of risks to Britain from the eurozone. "The countries of the periphery are struggling with a mixture of fiscal, banking and competitiveness problems," he said. "There is a risk that this could lead to renewed banking sector turbulence and a hit to confidence more generally, with adverse consequences for us."

Never our fault is it, if we have no control over anything why are these people employed?

Its like the BBC, they will say things about other countries and their leaders, that they wouldn't dare say about UK.

I think its a kind of "code" to mean us though.

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The Bank of England has claimed for the first time that it has taken a conscious decision to "accept a temporary period of above-target inflation" – words that analysts queried as an accurate account of the Bank's recent behaviour.

So change the official inflation remit. Change it to what they are now trying to target.

Despite all the grand words and promises about how the BoE would be the boys to get the UK's endemic inflation under control they fell at the first hurdle. Hey they fell at the 2nd, 3rd and 4th hurdles as well! Incompetents.

Edited by billybong

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So change the official inflation remit. Change it to what they are now trying to target.

Despite all the grand words and promises about how the BoE would be the boys to get the UK's endemic inflation under control they fell at the first hurdle. Hey they fell at the 2nd, 3rd and 4th hurdles as well! Incompetents.

they are a waste of space.

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Am I the only one who is confused? The BoE says that inflation is no longer a target but also says interest rates will have to go up:

http://www.dailymail.co.uk/news/article-1389436/Inflation-threat-warning-Vince-Cable-says-public-gird-painful-times-ahead.html#comments

Or have I misunderstood?

They have to have a fall guy to pretend interest rates might be going to rise to try hang on to some money. If they all said interest rates are never going to rise because we are bust what do you think that would do to sterling?

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They have to have a fall guy to pretend interest rates might be going to rise to try hang on to some money. If they all said interest rates are never going to rise because we are bust what do you think that would do to sterling?

So what's your take on the recent NS&I release?

http://www.nsandi.com/savings-index-linked-savings-certificates

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So change the official inflation remit. Change it to what they are now trying to target.

Despite all the grand words and promises about how the BoE would be the boys to get the UK's endemic inflation under control they fell at the first hurdle. Hey they fell at the 2nd, 3rd and 4th hurdles as well! Incompetents.

Catch yourself on.

Where were you in the 80s?

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Independent

Well at least that's out in the open now.

Well all that's needed now is everyone mailing this article to their bosses asking for a 5% pay rise.

Let's see if the BoE still thinks this level of inflation is acceptable after wage-inflation reaches 5%...

---

Edited by wise_eagle

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In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold. If everyone decided, for example, to convert all his bank deposits to silver or copper or any other good, and thereafter declined to accept checks as payment for goods, bank deposits would lose their purchasing power and government-created bank credit would be worthless as a claim on goods. The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves.

This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard.

Alan Greenspan, 1966.

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Catch yourself on.

So you're using one of those facetious expressions that apparently came from Ireland. Maybe you ought to seriously consider the UK history of inflation and boom and bust over the years and decades etc.

Where were you in the 80s?

I'm not sure exactly what that is intended to mean or what your response is trying to say but in the 80s, and for decades before that, inflation in the UK really was what can be described as endemic** - and that was under any political party. That's an established fact and all it's volatility and its ups and downs contributed to the endemic booms and busts in the UK economy. Look at the historical records on inflation and the economy.

That's one of the main reasons they used in justifying giving the job and the remit to the BoE. Basically inflation to be kept under control and no more boom and bust. Now we have another bust following a boom and increasing inflation well outside the remit. It's now clear the BoE have totally failed in their job and inflation is again out of control. There's no reason to suppose that it's not all still endemic in the economy - and it's very high relatively.

In your way of speaking I hope that has helped you to catch on a bit.

**Endemic, in a broad sense, can mean "belonging" or "native to", "characteristic of", or "prevalent in" a particular geography, group, field, area, or environment; native to an area or scope.

Edited by billybong

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This Bean guy is either a complete incompotent moron, or is lieing about the true extent to this now and what they expect over the next 6 - 12 months

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WIth that attitude it's only a matter of time before investors request higher returns , and people demand higher wages.

It's alright as inflation is ok!

(Time for the Benny Hill music)

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WIth that attitude it's only a matter of time before investors request higher returns

And where are they going to go for that ? Euro ? Don't think so. Dollar ? Hah !

We're the least worst of the bunch.

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MPC member Dale presses for immediate rate rise

Bank of England chief economist and Monetary Policy Committee member Spencer Dale says an immediate rise in interest rates would benefit the economy over the long-term.

In an interview with the Financial Times, Dale said he would like to see interest rates rise immediately, despite the fragile economic recovery.

http://www.moneymarketing.co.uk/politics/mpc-member-dale-presses-for-immediate-rate-rise/1031463.article

Blimey it's the opposite view. Not read the FT article.

Edited by Ash4781

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And where are they going to go for that ? Euro ? Don't think so. Dollar ? Hah !

We're the least worst of the bunch.

Or the risk free rate rijust rises everywhere. There was a chart of this on a thread.

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Inflation is, quite simply, a tax on cash and cash savings.

Governments levy taxes. The Government has lifted the ceiling on this tax, which was supposedly enforced by the BoE.

Rather than raise IR, which is a tax on borrowing, the Government obviously wants people to spend rather than save in order to stimulate the economy.

Unfortunately, personal borrowing and overspending is what got our economy into this mess in the first place.

Of course, if savings are reduced it would limit the ability of banks to lend due to the Basel II limits. However, banks are reluctant to lend to businesses anyway.

The damage to the economy has already been done. All this does is change who suffers least and who suffers most.

Edited by happy_renting

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Inflation is, quite simply, a tax on cash and cash savings.

Governments levy taxes. The Government has lifted the ceiling on this tax, which was supposedly enforced by the BoE.

Rather than raise IR, which is a tax on borrowing, the Government obviously wants people to spend rather than save in order to stimulate the economy.

Unfortunately, personal borrowing and overspending is what got our economy into this mess in the first place.

Of course, if savings are reduced it would limit the ability of banks to lend due to the Basel II limits. However, banks are reluctant to lend to businesses anyway.

The damage to the economy has already been done. All this does is change who suffers least and who suffers most.

Anyone with savings or trying to save, is having their taxed savings to be used in the future/rainyday/childrens future/retirement future taxed once via income tax twice via savings tax thrice taxed via inflation.....the savers will then have less to spend, once it is gone they will then have no choice but to come to the state for help with the begging bowl......

The governments are making it more and more difficult for people who want to help themselves to do so....unless you work for them....then you have access to reasonable pay, sick pay, holiday pay, expenses, bonus, good pensions........self employed have none of that, many private companies only have some of that....the way things are going, many people in this country will be reliant on the state one way or another..either through their work or through their benefits....... :blink:

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the way things are going, many people in this country will be reliant on the state one way or another..either through their work or through their benefits....... :blink:

Agreed, but what happens when the state purse is empty?

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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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      • Even
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      • up 5%



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