Mark Carney Set For Interest Rate Promise To Lift Economy

[awaytogo]

NEGATIVE INTEREST RATES

Few people are saving for the future now, who would save at all with neg interest rates, and then who would provide the mortgage money.

[dances with sheeple]

Great Communicator? More like the Great Obfuscator.

"Hi sheeple, I`m the great communicator, concentrate now, dictionaries at the ready, turn the sound down on Corrie, listen up......we are desperate for people to borrow, SO.... we are going to pretend that we can hold interest rates down for a long time, or until the events that we can`t control that will force rates up happen, either way just assume it will be a long time and just start borrowing..please....pretty please"

[LiveinHope]

The BBC are doing my head in with their incessant spin.

They're running an article about how good low interest rates are for businesses. Well, that's not true for all businesses. I used to run my company with positive cashflow and always did rather well when my competitors couldn't borrow the money they needed to operate at a loss and undercut me.

I was thinking along these very lines this evening. It is hard to compete against others who run their business on borrowed money at low rates and will go bankrupt happily.

[dances with sheeple]

just seen this bloke on the box saying house it was unfortunate for savers but the best thing for them is a strong economy.

the tv was nearly through the window.

the bankers are most definitely charge!

Conway nearly broke into a tap dance when he said mortgage borrowers and those in other debt would "have their "wealth" protected" What a f*ucking twit. Don`t know if they script this stuff and ask the presenter to act joyful for sheeple consumption, or if the presenters are so deep into the Ponzi investments that they can`t help smirking when this desperate attempt to keep it all afloat is discussed?

[LiveinHope]

Conway nearly broke into a tap dance when he said mortgage borrowers and those in other debt would "have their "wealth" protected" What a f*ucking twit. Don`t know if they script this stuff and ask the presenter to act joyful for sheeple consumption, or if the presenters are so deep into the Ponzi investments that they can`t help smirking when this desperate attempt to keep it all afloat is discussed?

Just listen to this from 12'.44" for 3 minutes. Conservative MP takes Carney and current policy to pieces. Very encouraging.

Edited August 7, 2013 by LiveinHope

[moneyfornothing]

Just listen to this from 12'.44" for 3 minutes. Conservative MP takes Carney and current policy to pieces. Very encouraging.

Well at least some conservatives are genuinely conservative... Can't imagine that coming from labour/libdem

[@contradevian]

Well at least some conservatives are genuinely conservative... Can't imagine that coming from labour/libdem

OMG Steve Baker MP Which HPC poster is this? Come on own up! Hill walking for you. We can't have this kind of thing on the wireless!

Edited August 7, 2013 by aSecureTenant

[LiveinHope]

Well at least some conservatives are genuinely conservative... Can't imagine that coming from labour/libdem

He wouldn't make a bad Chancellor

[dances with sheeple]

Just listen to this from 12'.44" for 3 minutes. Conservative MP takes Carney and current policy to pieces. Very encouraging.

Yes, but the tosser speaking after him feels he "will be in a minority" Seems Debt is Good according to the present "narrative"?

[dances with sheeple]

and to paraphrase Carnage on the TV when questioned ... Savers? ... F*** em.

F*uck him , my consumption is going to near zero, like a woodland animal in hibernation, like a sleeping shark in it`s cave

[Venger]

IMO only the largest economies can give forward guidance. US, maybe the EU. China and Japan maybe below the threshold. The UK economy is more influenced by what the world does than we influence the world.

So forward guidance for the UK is useless. Unless it is of the form "we will not raise rates unless the US raises rates/some external event forces us to raise rates", which everyone knows anyway.

And they also buy less stuff or cut back on people they employ as their psyche makes them hoard cash more, so less real money flows into the economy

And yet today, a widely covered news item is about nasty 'fast move - house sale' facilitators purchasing properties for 25 - 50% below advertised price - presumably because that is what they can sell them for with a profit.

Despite what the government spin, and HTB is just spin in the bigger picture, all commercial indicators suggest to me that HPC is 'on'.

F*uck him , my consumption is going to near zero, like a woodland animal in hibernation, like a sleeping shark in it`s cave

+1s. House prices can only be set by what people are willing and able to pay for them. More mid-to-upper housing especially that I can't see upsizers wanting to expose themselves to the level of debt required to buy.

More half-million+ for nodescript basic houses in many cases coming to market, some of which haven't had any modernisation in 30 years. Who will buy them?

Would just make everything worse if they do write mortgages with the HTB2 element for the gormless big debt-seekers, to push themselves infront of those better positioned (if house prices came down in value.).

I hope all the announcements lately are just about sustaining the morale of home-owners, as the crash plays out. Can only see lower aggregate demand coming, to offset accommodative policy towards debtors, and younger buyers becoming even priced out, even as prices slide downwards. Without allowing some sharper correction.

[okaycuckoo]

Maybe people think his promise isn't worth the paper it's printed on. If he broke his promise, could he be sued?

No point suing him - he's a renter, no chargeable assets.

[Giordano Bruno]

and to paraphrase Carnage on the TV when questioned ... Savers? ... F*** em.

I must be about the lowest of the low. I'm both a saver and a renter! You can't get much lower than that. I should hang my head in shame.

[The Masked Tulip]

Trawling the financial reaction in the papers today all reckon that we will now see bubbles in assets - namely houses. Much talk of house prices soaring.

[LiveinHope]

Trawling the financial reaction in the papers today all reckon that we will now see bubbles in assets - namely houses. Much talk of house prices soaring.

I take some crumb of comfort that everyone is talking "bubbles". It might just sink into the nations psyche and make people be wary and think.

That is with my positive stance. I must admit that I am feeling fairly gloomy today. It feels that you need to borrow money to succeed in this country - although of course it is not success, it is a charade.

Until very recently, I was angry for those I saw being cynically sucked by their government into a lifetime of debt through overpaying for a house through HTB - but **** 'em. Having visited a Taylor Wimpy new build estate and looking around the show home at the weekend (out of curiosity) - that was priced at £450k - I feel that any purchaser deserves what they get if that is their idea of either value or success in life.

But certainly, this morning I despair.

Edited August 8, 2013 by LiveinHope

[The Masked Tulip]

I take some crumb of comfort that everyone is talking "bubbles". It might just sink into the nations psyche and make people be wary and think.

That is with my positive stance. I must admit that I am feeling fairly gloomy today. It feels that you need to borrow money to succeed in this country - although of course it is not success, it is a charade.

Until very recently, I was angry for those I saw being cynically sucked by their government into a lifetime of debt through overpaying for a house through HTB - but **** 'em. Having visited a Taylor Wimpy new build estate and looking around the show home at the weekend (out of curiosity) - that was priced at £450k - I feel that any purchaser deserves what they get if that is their idea of either value or success in life.

But certainly, this morning I despair.

I share your despair.

EAs are ramping like crazy. People I know who have remortgaged in the past month have all been told by the bank's valuers that their house is worth 10% more than they paid for them just 12 months ago. Wait for Help to Buy to kick in.

There are millions of vested interests out there who have their own huge mortgages who wish for HPs to rise.

I think the option now is either to buy and suck it or to move overseass. As I wrote in another thread even if you stick all your cash into the best dividend paying FTSE shares you will only make about 4 or 5 percent dividend - and have the risk of stocks falling in price. But fhe VIs and media are ramping house price rises of 7 to 10 percent. In other words sticking all your money into shares would not keep up with this ramped bubble.

Edited August 8, 2013 by The Masked Tulip

[winkie]

F*uck him , my consumption is going to near zero, like a woodland animal in hibernation, like a sleeping shark in it`s cave

Steve baker was right.......no gain without pain, instead of prolonging the 'a bit less pain' for longer, I will try and do the same. Carney said deflation helps savers not only higher interest rates, that I agree.....they are pushing low interest rates along with inflation that will not help unemployment or people that are forward thinking and plan ahead longer than five years..... because we live in a country of having an excess, an excess of cheap imports, far too much stuff, a throw away and wasteful place both in energy and labour and stuff we don't need........but there are those that will use what others throw away and waste.....so waste not want not....create your own deflation to protect your own savings......go against the flow they are forcing us to go along with.....ie debt and consumption.

[interestrateripoff]

With saving discouraged capital formation is going to come from where to create new jobs in this wonderful paradigm?

[winkie]

With saving discouraged capital formation is going to come from where to create new jobs in this wonderful paradigm?

All these people once had a job in manufacturing........how is it possible for us to create work that would produce something another country would want or more importantly could afford to buy.

Burton button factory Leeds.

[The Masked Tulip]

All these people once had a job in manufacturing........how is it possible for us to create work that would produce something another country would want or more importantly could afford to buy.

Burton button factory Leeds.

They clearly have decided that it is too difficult - and also not the interests of the elite - to even try and rebalance the economy.

Much easier to keep the majority of Brits dependent on public sector work or on benefits. In fact, more on benefits allows more excuses to claim that mass immigration is needed. That old chestnut often uttered by politicians and repeated and nauseum by stupid journos - "We do not have the skills".

[The Knimbies who say No]

Carney on the Today program's 8:10 interview slot, it'll appear on iPlayer in due course. Pretty poor stuff, talking about households deleveraging wrt incomes(really?) and also an extraordinary claim that growth forcasts are not dependent on rises in household debt. I'll have to relisten to see if I caught that correct, as it would be in stark contrast to the OBR predictions.

[Coffeehead]

If you look at the graph on this page, unemployment below 7% is actually very rare in the uk

http://blogs.spectator.co.uk/coffeehouse/2013/04/margaret-thatcher-in-six-graphs/

[winkie]

They clearly have decided that it is too difficult - and also not the interests of the elite - to even try and rebalance the economy.

Much easier to keep the majority of Brits dependent on public sector work or on benefits. In fact, more on benefits allows more excuses to claim that mass immigration is needed. That old chestnut often uttered by politicians and repeated and nauseum by stupid journos - "We do not have the skills".

Of course we have the skills or could quickly learn any skills there was a demand for if there was a long-term demand for the skills and our education departments were up to teaching them, able and skilled themselves to teach them......the employers would rather import the skills taught abroad on a flexible short-term contract at low cost.

[The Masked Tulip]

Of course we have the skills or could quickly learn any skills there was a demand for if there was a long-term demand for the skills and our education departments were up to teaching them, able and skilled themselves to teach them......the employers would rather import the skills taught abroad on a flexible short-term contract at low cost.

Exactly my point.

[The Masked Tulip]

If you look at the graph on this page, unemployment below 7% is actually very rare in the uk

http://blogs.spectator.co.uk/coffeehouse/2013/04/margaret-thatcher-in-six-graphs/

Yes, this is what I thought yesterday. IMPO IRs are not going up for a generation.

In fact, now the banksters know they have gotten away with it I suspect and introducing charges for our banking is the next step. ZIRP and charges.