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Interest Rates 'may Triple' Next Year As Wages And Jobs Grow, City Predicts

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...seems reasonable 'growing up' for Lib Dem policy in this area ..and why increase tax on people who are not state reliant anyway ..they are saving the country costs....and others who are brought into high property values by a central bank who have lost the plot and allow international money laundering to dictate the market in the capital city ...poor financial illiterates running our strategic economic policies.... :rolleyes:

...apologies I hit the wrong link in the Telegraph and this links to Property Tax

..please ignore in the context of this thread...

Edited by South Lorne

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I read the article like just about all the others on the Torygraph at the moment - a sop to their readership of 50 plus disenchanted voters who keep saying they'll vote UKIP at the next General Election.

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Keep promising rate rises...

  1. Give the money markets confidence returns are just around the corner
  2. Scare people onto higher / longer fixed rates

Do nothing.

Rinse and repeat, getting more and more frantic and cocksure in your "predictions" as time goes on.

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This will be one of many stories to try and cool the market without actually doing anything.

Maybe they'll do some investigations on lending too and showcase a prosecution of some irresponsible lender.

Anything but raise rates and damage business investment before it's even begun.

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Interest rates me tripple to.....1.5%.

How will we all cope !!!

If that can destroy the economy then something is far wrong.

Maybe it's time to sort out the real problems ( i.e. if you ask me, the banks ) and get back to normal.

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This will be one of many stories to try and cool the market without actually doing anything.

Maybe they'll do some investigations on lending too and showcase a prosecution of some irresponsible lender.

Anything but raise rates and damage business investment before it's even begun.

but rates have been low for 5+ years :o

so business investment has not 'begun' in that time?

all it has done is aid the BTLers many of whom are on trackers and boom the housing market, No real investment/recovery to show for it.

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but rates have been low for 5+ years :o

so business investment has not 'begun' in that time?

all it has done is aid the BTLers many of whom are on trackers and boom the housing market, No real investment/recovery to show for it.

People seem to not realise the seriousness of what happened in 2007...the banking system collapsed....the government by all accounts thought they'd have to put the army on the streets. Rather than act to clean up the mess, take the guilty to task and stop it happening again, they have instead decided to try and keep the scam going and under-write their losses for the next 2 decades,. Any recovery we see at the moment, is not a recovery it's a return to the lunacy that caused the collapse. it will take a 2nd banking crisis for them to actually sport it out....much like the railway bubble.

Get the tins of beans in, the banks could well shut for 2 weeks at some point.

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People seem to not realise the seriousness of what happened in 2007...the banking system collapsed....the government by all accounts thought they'd have to put the army on the streets. Rather than act to clean up the mess, take the guilty to task and stop it happening again, they have instead decided to try and keep the scam going and under-write their losses for the next 2 decades,. Any recovery we see at the moment, is not a recovery it's a return to the lunacy that caused the collapse. it will take a 2nd banking crisis for them to actually sport it out....much like the railway bubble.

Get the tins of beans in, the banks could well shut for 2 weeks at some point.

That's what it looks like. Shame really, and so stupid and unnecessary, but it's either that or something much worse. Let's be clear - a continuation of the current status quo is basically a declaration that the banks get to suck as much productivity from the rest of the economy as they want.

(sweary)

The last 48 hours before it happens are going to be extraordinary.

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This will be one of many stories to try and cool the market without actually doing anything.

Maybe they'll do some investigations on lending too and showcase a prosecution of some irresponsible lender.

Anything but raise rates and damage business investment before it's even begun.

So effectively,trying to get the Telegraph to give the 'forward guidance' as clearly noone listens to the BoE.

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I read the article like just about all the others on the Torygraph at the moment - a sop to their readership of 50 plus disenchanted voters who keep saying they'll vote UKIP at the next General Election.

This.

Rentier jam to try and claw back the poll deficit.

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This.

Rentier jam to try and claw back the poll deficit.

Today's other highlights include "Dave believes in God" - it's Dave now, don't you know. He's on "your side".

And "Why is UKIP stealing Tory voters" - note the word "stealing" which normally implies taking something which is not rightfully yours.

The Telegraph has gone into full frenzy with the propaganda now.

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Today's other highlights include "Dave believes in God" - it's Dave now, don't you know. He's on "your side".

And "Why is UKIP stealing Tory voters" - note the word "stealing" which normally implies taking something which is not rightfully yours.

The Telegraph has gone into full frenzy with the propaganda now.

Indeed. Plus they've taken on that City propaganda extremist Alistair Heath from City a.m. Full on loony tune mode

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3 x 0 = 0

Indeed.

Just imagine a few extra percentage points on your credit cards, lines of credit, loans, mortgage, etc...

Any upwards movement on the base rate will crush this country.

Deflation is of course running rampant all over the western geo-political sphere of influence.

Carney and the incumbent treasury head will not seek raises, however, the market will force it.

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If the cheap money from the central banks which is currently floating all boats goes away, there won't be any growth in wages or jobs.

In fact, even if it doesn't you can bet that wages growth will come nowhere near to matching increases in the cost of living despite what the heavily fiddled official stats might claim (even by official measures, there has already been a huge fall off in income for the average person which is never likely to be recouped).

On the other hand, as long as the cheap money continues the insiders can get richer and richer and everyone else can pretend that the economy is OK. Not too difficult to see that interest rates won't be going up until there is absolutely no other option but to raise them ... and probably long after that point.

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The minute Osborne is forced to reduce his spending the UK economy will crater. We will then get the equivalent of Abenomics i.e QE on steroids as the BoE is obliged to monetise the govt budget, deficit and all, every year just like Japan while desperately trying to talk down sterling. I don't believe UK base rates will rise above 1% this side of a default/hyperinflation.

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Today's other highlights include "Dave believes in God" - it's Dave now, don't you know. He's on "your side".

And "Why is UKIP stealing Tory voters" - note the word "stealing" which normally implies taking something which is not rightfully yours.

The Telegraph has gone into full frenzy with the propaganda now.

The first sentence of the article

The British economy is growing faster than that of any G7 country, the cost of living crisis is over, Ukip are tearing themselves apart and David Cameron's trump card – a referendum on EU membership in 2017 – is on the table.

That first sentence is sufficient explanation for why UKIP is gaining such a lot of support - but:

The British economy is growing faster than that of any G7 country, = faster debt - and spin.

the cost of living crisis is over, = an amazing claim after one month's manipulated figures of wages being negigibly larger than manipulated inflation stats - and spin.

Ukip are tearing themselves apart = ? - and spin.

and David Cameron's trump card – a referendum on EU membership in 2017 – is on the table. = it used to be a trump card on a cast iron table - and spin.

And is it an achievement getting into more debt faster than the G7 countries considering most of the countries constituting the G7 and their current circumstances.

Edited by billybong

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The minute Osborne is forced to reduce his spending the UK economy will crater. We will then get the equivalent of Abenomics i.e QE on steroids as the BoE is obliged to monetise the govt budget, deficit and all, every year just like Japan while desperately trying to talk down sterling. I don't believe UK base rates will rise above 1% this side of a default/hyperinflation.

Accords with my view - and why the currency will collapse completely.

With "QE" there is no market. Therefore, there is no market event that can "force" interest rates up.

Until it's already too late.

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I posted a question on another thread - where do we see cpi in a years time? I am changing my view rapidly to downside risk 0% to deflation. .

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If the cheap money from the central banks which is currently floating all boats goes away, there won't be any growth in wages or jobs.

In fact, even if it doesn't you can bet that wages growth will come nowhere near to matching increases in the cost of living despite what the heavily fiddled official stats might claim (even by official measures, there has already been a huge fall off in income for the average person which is never likely to be recouped).

On the other hand, as long as the cheap money continues the insiders can get richer and richer and everyone else can pretend that the economy is OK. Not too difficult to see that interest rates won't be going up until there is absolutely no other option but to raise them ... and probably long after that point.

Yup case of damned if they do and damned if they don't. But it's a cyclical problem. Without income flowing into peoples pockets, companies won't hire to increase production or invest in technology to increase production. Why would they? It'd be just money down the drain since there would not be the necessary consumption to support that increased business spending. But then if they don't hire or invest in technology (which also results in hiring elsewhere in the system), then there is no pressure in the labour market to force businesses to raise what they pay. Ergo, cyclical.

If you were really kind you would say Osborne is trying to get this beneficial cycle going again, in some mistaken belief that what he is trying would actually work. Personally I think he is an idiot blowing a housing bubble to get re-elected.

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