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Boe Can't Raise Rates

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Telegraph

Persistently over-target inflation – currently at 4.5pc – has led to speculation that the Bank will soon have to move to slow the pace of price rises, in order to maintain people's faith in its commitment to meeting the 2pc target set by the Government. However, switching gears now would mean the Bank is effectively admitting that past policy has been inappropriate, said Stephen Lewis, the chief economist at Monument Securities.

It is hard to see how the MPC majority could now concede a rate increase without admitting that their economic analysis had been flawed from the outset," Mr Lewis said.

So your doctor has mis-diagnosed your diarrhoea as a self limiting bit of "gastric flu" and told you not to worry. Meanwhile the E Coli destroys your liver and kidneys but the outcome is much better if the medics to stick to the original diagnosis, lest they damage their credibility by changing the original assessment.

I can't think of any professional sphere in the real world where such a flawed analysis would be effective or ethically tolerable. Maybe economics is different. Any real economists out there? I don't include Mr Lewis of Monument Securities.

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Telegraph

So your doctor has mis-diagnosed your diarrhoea as a self limiting bit of "gastric flu" and told you not to worry. Meanwhile the E Coli destroys your liver and kidneys but the outcome is much better if the medics to stick to the original diagnosis, lest they damage their credibility by changing the original assessment.

I can't think of any professional sphere in the real world where such a flawed analysis would be effective or ethically tolerable. Maybe economics is different. Any real economists out there? I don't include Mr Lewis of Monument Securities.

If the BoE raise rates, millions of people will be instantly made homeless and all the banks will go broke.

There is no chance.

You'll never see that analysis anywhere outside of forums like this one, but that's the truth of it. Low interest rates and printing into oblivion is all there will be.

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If the BoE raise rates, millions of people will be instantly made homeless and all the banks will go broke.

There is no chance.

You'll never see that analysis anywhere outside of forums like this one, but that's the truth of it. Low interest rates and printing into oblivion is all there will be.

+1

It's the truth that Government and the media dare not mention, thus we will continue to luxuriate with "historic low interest rates" for the forseable future

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If the BoE raise rates, millions of people will be instantly made homeless and all the banks will go broke.

There is no chance.

You'll never see that analysis anywhere outside of forums like this one, but that's the truth of it. Low interest rates and printing into oblivion is all there will be.

Millions are already homeless. Increasing IRs wouldn't force homelessness on more people, just on a different set of people, who currently enjoy an unearned immunity from financial consequences. And the banks are already broke. I don't see how spiralling inflation improves this situation. Nor do I understand that BoE can't alter its policy without losing credibility. As far as inflation is concerned it has no credibility left to lose.

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Millions are already homeless. Increasing IRs wouldn't force homelessness on more people, just on a different set of people, who currently enjoy an unearned immunity from financial consequences. And the banks are already broke. I don't see how spiralling inflation improves this situation. Nor do I understand that BoE can't alter its policy without losing credibility. As far as inflation is concerned it has no credibility left to lose.

The current homeless are hidden, the cause and effect obscure.

Raising interest rate would be obvious, in the open and electoral suicide.

Not going to happen.

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The Bank of England would destroy the "last vestiges" of its credibility if it raised interest rates this week, according to new analysis which counters suggestions that rising prices will force policy-makers to act soon.

Meanwhile we keep hearing the BoE are loosing credibility for not raising rates and allowing inflation to rage :blink:

Cannot see rates rising myself, the BoE's next move will surely be QE-III as the wheels come off the economy again.

Until the system is purged of the complete crap within it (inc. houses nobody can afford) this 'financial crisis' will continue forever.

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The current homeless are hidden, the cause and effect obscure.

Raising interest rate would be obvious, in the open and electoral suicide.

Not going to happen.

This isn't 1992! The BoE is now independent and free of all political influence.

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This isn't 1992! The BoE is now independent and free of all political influence.

They also like the windows of their houses in one piece and not to be spat at in the street.

But mostly -

:lol::lol::lol:

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Millions are already homeless. Increasing IRs wouldn't force homelessness on more people, just on a different set of people, who currently enjoy an unearned immunity from financial consequences. And the banks are already broke. I don't see how spiralling inflation improves this situation. Nor do I understand that BoE can't alter its policy without losing credibility. As far as inflation is concerned it has no credibility left to lose.

Great post. The word "Millions" is all too true.

The bank of England are gambling the credibility of the pound itself, hoping that the situation will right itself with low interest rates. I reckon they need the government to run a fiscal surplus in parallel to pull that trick of.

Best inflation proof yourself.

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I love some people's thoughts.

Basically, and simply, people in power can do whatever they like. Yes, that includes increasing interest rates, making people homeless and killing people.

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If the BoE raise rates, millions of people will be instantly made homeless and all the banks will go broke.

The banks can not go broke as there was nothing there to start with.

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The banks can not go broke as there was nothing there to start with.

The banks have made promises, however - which will be broken in such a scenario.

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The banks have made promises, however - which will be broken in such a scenario.

They can break promises. Been doing that all the time since year dot.

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I love some people's thoughts.

Basically, and simply, people in power can do whatever they like. Yes, that includes increasing interest rates, making people homeless and killing people.

Thats the very definition of a nation state, the state essentially stays in power because ultimately they can use violence to enforce their will, an option not open to businesses or individuals, (or at least only with the Governments consent)

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They can break promises. Been doing that all the time since year dot.

That's called going broke.

Ta da! We go full circle.

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That's called going broke.

Ta da! We go full circle.

It doesn't matter what word or words we use to describe it. Such people in power can not go broke. They can break promises. They really can do anything they like and there is nothing anyone can do about it.

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If the BoE raise rates, millions of people will be instantly made homeless and all the banks will go broke.

There is no chance.

You'll never see that analysis anywhere outside of forums like this one, but that's the truth of it. Low interest rates and printing into oblivion is all there will be.

And that's the truth, better get used to living in a Banksta's Paradise people.

Of course, if you follow my advice the BoE will be working for you. Every failure to raise interest rates, let alone raise interest rates into positive territory, is money in the bank, rather than money robbed from it. B)

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It doesn't matter what word or words we use to describe it. Such people in power can not go broke.

Yes, they can and they do.

They can break promises.

They can and they do - but there is always consequence.

They really can do anything they like and there is nothing anyone can do about it.

They are only humans, matey.

I think you aren't factoring how power is acquired in the first place - and it isn't from being sent from krypton.

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Yes, they can and they do.

They can and they do - but there is always consequence.

They are only humans, matey.

I think you aren't factoring how power is acquired in the first place - and it isn't from being sent from krypton.

One word: Globalists.

A minority percentage in terms of numbers, but enough of them working in concert to run the world. Who have these people got to challenge? People from Mars or the moon??

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One word: Globalists.

A minority percentage in terms of numbers, but enough of them working in concert to run the world. Who have these people got to challenge? People from Mars or the moon??

They don't run the world in some "ubermensch" fashion.

People hand power to them for various psychological reasons, but it can always be taken back.

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They don't run the world in some "ubermensch" fashion.

People hand power to them for various psychological reasons, but it can always be taken back.

And if their power is taken back the next people in power will be any different?

Generally, you will find people in power have not actually earned it at all.

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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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