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kenclarkesshoes

Hpi Or Devaluation

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If house prices stay at their current inflated levels will the pound have to be devalued ?

is that the choice facing BROWN ?

if he wants to keep the pound strong he has to let house prices fall.

if he wants to keep hous prices artifically high he has to devalue the pound,

am i right on this ?

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Guest muttley

If house prices stay at their current inflated levels will the pound have to be devalued ?

is that the choice facing BROWN ?

if he wants to keep the pound strong he has to let house prices fall.

if he wants to keep hous prices artifically high he has to devalue the pound,

am i right on this ?

I wouldn't say we were at that crossroad just yet!

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If house prices stay at their current inflated levels will the pound have to be devalued ?

is that the choice facing BROWN ?

if he wants to keep the pound strong he has to let house prices fall.

if he wants to keep hous prices artifically high he has to devalue the pound,

am i right on this ?

I wouldn't have thought house prices, as such, were his main concern? Isn't growing the economy yet with controlled inflation his aim?

On the devaluation issue, in my opinion, the Pound and most other Western currencies are very much overvalued when compared to the Asian currencies, which seem to be held down by their own governments intervention. This, of course, gives them a serious advantage in global trade and is creating major imbalances. It needs sorting and I have the feeling that if it isn't we will, at some point in the future, see the reintroduction of trade barriers.

Out of interest how do you suggest he devalues the Pound? Interest rate cuts? Tax cuts or hikes? Less or more public spending 'investment'? I'm not sure what works these days though I believe the UK has been selling the £ and buying $s recently which might do the trick? I ask 'cause I don't know :unsure:

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Out of interest how do you suggest he devalues the Pound? Interest rate cuts? Tax cuts or hikes? Less or more public spending 'investment'? I'm not sure what works these days though I believe the UK has been selling the £ and buying $s recently which might do the trick? I ask 'cause I don't know :unsure:

neither do i . why im asking.

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neither do i . why im asking.

yes, forget house prices for a moment.

the debt burden is having a negative impact on the country.

The only way round this is:

to keep current debt levels, but stop the amount of debt increasing rapidly.

to do this he has to drop house prices. The level of debt we are in now is nothing compared with where we will have to be in a few years if house prices stay high

Or, to allow inflation to make the debt burden shrink.

Devaluing the pound so that the current debt burden does not strangle the economy.

Now.

If there is another way round, or if the country can somehow manage the debt burden please let me know..

But.. otherwise those are the choices.

and the MPC who decide interest rates.

Their sole aim is to keep inflation down.

yup,, that is their sole aim.. as they keep saying..

so option 1 it is.

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yes, forget house prices for a moment.

the debt burden is having a negative impact on the country.

The only way round this is:

to keep current debt levels, but stop the amount of debt increasing rapidly.

to do this he has to drop house prices. The level of debt we are in now is nothing compared with where we will have to be in a few years if house prices stay high

Or, to allow inflation to make the debt burden shrink.

Devaluing the pound so that the current debt burden does not strangle the economy.

Now.

If there is another way round, or if the country can somehow manage the debt burden please let me know..

But.. otherwise those are the choices.

and the MPC who decide interest rates.

Their sole aim is to keep inflation down.

yup,, that is their sole aim.. as they keep saying..

so option 1 it is.

thanks.,

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Guest muttley

.

to do this he has to drop house prices.

He can't "drop house prices"!

He could create the conditions in which house prices might drop,but he cannot cause it to happen directly.

I don't believe it's on his agenda.

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He can't "drop house prices"!

He could create the conditions in which house prices might drop,but he cannot cause it to happen directly.

I don't believe it's on his agenda.

i think we know that he cant directly drop prices.

when was the last time a prices policy was tried in the UK ?

was it Heath or Callaghan ?

Soaring inflation forced Heath to abandon his free-market platform and institute wage and price controls.

Edited by kenclarkesshoes

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I wouldn't have thought house prices, as such, were his main concern? Isn't growing the economy yet with controlled inflation his aim?

His 'aim' is to become PM, anything that does not directly contribute the achievment of that goal is irrelevant. So he will do whatever is politically most acceptable; at the moment I think higher inflation will be preferable (for most voters and hence GB) to a house price crash. The very last thing he wants is to be moving into Number 10 just as the country is turned into a howling wasteland of negative equity where radioactive jackyls gnaw at the entrails of screaming Daily Mail readers.

Edited by jackalope

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Guest muttley

If house prices stay at their current inflated levels will the pound have to be devalued ?

is that the choice facing BROWN ?

It's a bit like getting on a plane and the captain asking the passengers "Do you want to land on a field or in the sea?"

You were probably hoping he would land on a runway.

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It's a bit like getting on a plane and the captain asking the passengers "Do you want to land on a field or in the sea?"

You were probably hoping he would land on a runway.

Didint you notice? A group of elves quickly put on those floatation feet that you get on water-landing aeroplanes, dont believe me? Well ill show you after we land.

Field landing it is then.

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  • 301 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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