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George Osborne Warns City To Prepare For Turmoil Over Russia Sanctions And Interest Rate Rises


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HOLA441

http://www.telegraph.co.uk/finance/economics/10761201/George-Osborne-warns-City-to-prepare-for-turmoil-over-Russia-sanctions-and-interest-rate-rises.html

The City must brace itself for a new wave of market volatility amid looming interest rate rises and the possibility of harsher Russian sanctions, the Chancellor has said, as he insisted that the Treasury was prepared "for any eventuality" on the Ukrainian crisis.

George Osborne said the gradual tapering of US asset purchases, which triggered a major emerging market sell-off last year, showed it was important that policymakers provided clear communication to the market about future policy actions.

"We all need to be ready for an increased level of volatility in line with historic trends," Mr Osborne said on Friday.

"It is something we need to be communicating more so that it is priced in and people expect this return of normal volatility and it's not a surprise when it happens."

"This crisis, which started in Crimea..."

Edited by thecrashingisles
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I think the yanks are going to up the ante as far as they can against Russia, even though it is risky for them, if it forces rates up and puts an end to the moronic behaviour of many of the UK`s debt sucking sheeple I say ..Bring it on, Bring it....Bring it to Papa :lol:

Yes, i think you are right the yanks are going to up the ante which is not going to be good for the city, this will affect the money that is coming in.

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I think the yanks are going to up the ante as far as they can against Russia, even though it is risky for them, if it forces rates up and puts an end to the moronic behaviour of many of the UK`s debt sucking sheeple I say ..Bring it on, Bring it....Bring it to Papa :lol:

Osborne publicly warning about IRs going up is opposite to his economic policy of keeping IRs lows, of employing Carney and of ramping house prices. Something must be up for him to come out and say this - sounds like he has been briefed about what the Yanks intend to do... or this is just FUD to try and worry Putin?

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The City must brace itself for a new wave of market volatility amid looming interest rate rises and the possibility of harsher Russian sanctions, the Chancellor has said, as he insisted that the Treasury was prepared "for any eventuality" on the Ukrainian crisis.

Shouldn't it be the BoE commenting on interest rates in their "independent " role - or at least making a joint announcement if it's become a mainly political/economic sanction issue.

After all average people would likely have to brace themselves not just the bailedouteds in the "City" - or is it just yet another Mutt and Jeff, double bind ruse.

It also sounds like a ruse to garner some savers' votes using any old ploy possible - plus votes from the "look the UK is still a world power and not under the control of the eu (or the City for that matter) after all" lot.

Edited by billybong
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It's a way of putting insurance down in case the economy crashes. He can point to 'russian sanctions' and his warning to escape criticism being correctly targetted at his insane HTB and HPI policies

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We've been told that interest rates will go up by a a couple of percent at the most over a few years, its hardly a need to brace ourselves.

The EU arent going to overstep the mark with the Russians being as Russia supplies Germany with most its gas.

precisely, they intend to ramp up the rhetoric,but when it comes to military operation, they will bottle out and leave the yanks and the brits to take the flack.

hence holy roman empire 2.0 is born, and his holiness(ahem) will look like a saviour....and also have those pesky heretics out of the way.

(it's all on ratzingers coat of arms if you can read it......says he was one of the masterminds behind the operation)

the bear is obvious..that's russia.

the bloke with the crown on his head..that is obama

the scollop is the very old symbol for the stuart dynasty...and that is relevant to the UK.

...also explains a lot of germany's recent success(and our relative failure ) in matters economic and industrial.....given that there is a lot of theological influence behind this too.

the counter-reformation is alive and well folks, and they are up to no good.

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precisely, they intend to ramp up the rhetoric,but when it comes to military operation, they will bottle out and leave the yanks and the brits to take the flack.

hence holy roman empire 2.0 is born, and his holiness(ahem) will look like a saviour....and also have those pesky heretics out of the way.

(it's all on ratzingers coat of arms if you can read it......says he was one of the masterminds behind the operation)

the bear is obvious..that's russia.

the bloke with the crown on his head..that is obama

the scollop is the very old symbol for the stuart dynasty...and that is relevant to the UK.

...also explains a lot of germany's recent success(and our relative failure ) in matters economic and industrial.....given that there is a lot of theological influence behind this too.

the counter-reformation is alive and well folks, and they are up to no good.

:blink:

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George Osborne said the gradual tapering of US asset purchases, which triggered a major emerging market sell-off last year, showed it was important that policymakers provided clear communication to the market about future policy actions.

Does that mean he is going to tell his mates first.

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Osborne publicly warning about IRs going up is opposite to his economic policy of keeping IRs lows, of employing Carney and of ramping house prices. Something must be up for him to come out and say this - sounds like he has been briefed about what the Yanks intend to do... or this is just FUD to try and worry Putin?

I know this sounds contrarian, but I still don't fully believe GO (or Carney) want run away HPI. All they want is business investment to kick start and enough GDP boost (from whatever source) to bag the election.

I don't think these guys are dogmatically wed to HPI. If anything you expect the Thatcherite side to be wanting to reverse the rentier situation at the moment.

The difficulty they have is that their voting demographic want high HP and want to continue fleecing the under-45s with tuition fees etc.

There is no doubt that many of the coalition will be sat at dinner parties this weekend listening to surgeons, barristers and architects they went to school with complaining they can't afford to buy a house. This is why so many stories are appearing about property costs - as most journalists are priced out too.

Unfortunately the most obvious solution, given the political aspect, is to top the market out with some ceiling on mortgage applications, whilst making it easier for everyone to get the highest lending available - creating a new bottom much higher than previous ones.

If IR do have to rise faster than expected, the problem will be socialised again - so there will be little benefit to the HPCers.

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HOLA4423

Osborne publicly warning about IRs going up is opposite to his economic policy of keeping IRs lows, of employing Carney and of ramping house prices. Something must be up for him to come out and say this - sounds like he has been briefed about what the Yanks intend to do... or this is just FUD to try and worry Putin?

Maybe he is thinking if our energy supplies like gas are reduced, then prices will rocket and create higher inflation. Then rates rise in response to inflation (though they didn't in 2010/2011 RPI 5%+ and base rate 0.5%).

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George Osborne said the gradual tapering of US asset purchases, which triggered a major emerging market sell-off last year, showed it was important that policymakers provided clear communication to the market about future policy actions.

Does that mean he is going to tell his mates first.

I was reading about Nathan Rothschild last night who (as I'm sure you all know) (though others argue otherwise) manipulated the financial markets after the Battle of Waterloo to trigger a massive sell-off of British bonds...which he then promptly bought back at rock bottom prices knowing they were about to go through the roof.

Kind of makes me think they're trying to do the same kind of thing here...

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