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Biriani

Kaletsky Calls For Hpi As Solution To Eus Problems

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Interesting column by Kaletsky here:

http://www.timesonline.co.uk/article/0,,1061-1894274,00.html

He says that the ECB's reluctance to embrace house price inflation and debt-fuelled consumer spending is to blame for the EU's poor growth.

"I have argued that the biggest economic issue for Europe today is not structural reform but the ECB’s attitude to the interaction between low interest rates, rising house prices, financial deregulation, mortgage borrowing, and consumption. Would it allow an Anglo-Saxon style virtuous circle to develop and become a solution to Europe’s under-consumption? Or would central bankers see rising house prices and mortgage borrowing as a dangerous symptom of profligacy, to be stifled before it got out of hand."

You may begin savaging .... now

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The EU has tried (is trying) the spendthrift unsustainable debt driven model (Spain, Ireland, Holland) The Germans are wary to go down the inflationary path because history has thought them that such episodes (Weimer Republic) leads to disagreeable types grabbing control. Italy has lost control of their budgets and are deficit spending like the best of them, EU rates are lower than in the ‘Anglo Saxon’ economies. When will Kalensky and his ilk admit that we will have to start competing with low cost economies before we loose forever the skill sets and industrial capacity to do so. Asset prices will take a hit but sh1t happens.

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I remember an article he wrote last June in which he said all the same things. He admitted that he was sitting on the veranda of his house in France when he wrote it. The drift of his article then was that the ECB would cut rates. I think he has the **** ache 1. Because he was completely wrong. 2. Because his property / ies are not rising in value and probably falling.

What amazes me is that 1. He thinks cutting rates from 2% is sensible when real retruns for savers are negative. 2. He thinks a borrowing binge is the way to create a healthy economy. Yup no need to produce goods and services that are competitive and people actually want around the world , no siree you just borrow your **** off and pass the debt to the following generations, problem solved ! What a f***wit. , I cant believe the Times actually pays him to write such crap.

Why is it that the tossers who keep saying we should cut rates completely forget the savers who's money they are so keen to borrow and spend. What incentive is there to save when after tax and inflation you'd be lucky to get even 1% ? Why would you do the prudent thing and save for a rainy day / your retirement.

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Interesting column by Kaletsky here:

http://www.timesonline.co.uk/article/0,,1061-1894274,00.html

He says that the ECB's reluctance to embrace house price inflation and debt-fuelled consumer spending is to blame for the EU's poor growth.

"I have argued that the biggest economic issue for Europe today is not structural reform but the ECB’s attitude to the interaction between low interest rates, rising house prices, financial deregulation, mortgage borrowing, and consumption. Would it allow an Anglo-Saxon style virtuous circle to develop and become a solution to Europe’s under-consumption? Or would central bankers see rising house prices and mortgage borrowing as a dangerous symptom of profligacy, to be stifled before it got out of hand."

You may begin savaging .... now

that would be germany he likes the look of then.

...pity germany is in the commie-wannabee EU.deutschland might stand a chance if it wasn't in with the euro........The EU obviously hasn't figured out that if you want the economy to expand you keep the curvy banana regulations to a minimum!!!.....otherwise business buggers off elsewhere.Labour could learn a thing or two.

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  • 302 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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