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Blod

What Is The Boe Upto ?

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It seems to me that the BoE are yet again trying to use a form of "forward guidance" in an attempt to bring forward any last drop of spending.

People hearing that the BoE might be looking at current dropping prices switching suddenly to rising prices might be lured into spending now rather than waiting.

I personally can't see them raising rates for at least a year or two and even then we might see very slow recovery.

Edited by Blod

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The general election is in the offing - so he has to keep up the tiger economy pretence.

There might be financial reasons as well but if he was saying interest rates are going to be going down it wouldn't tie in with the Conservative/Libdem "recovery" story.

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Just imagine the carnage if interest rates returned to normal.

Bring it on. Back to normal and let self responsibility return.

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hes just reminding haldane who is boss.

Pretty obvious 1st rate rise is irrelevant. Theyre going to keep running behind the curve until economy is running over capacity and nominal wages are 4-5%. Everything else is just hot air.

Edited by R K

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The time to start renormalising rates was 2 years ago before the worst excesses of the shale bubble were manifest. It's way too late now.

Not that it would have made much difference. Until Eurodollar deposits (+ derivatives) are significantly smaller than US M2 the world economy will remain prone to deflation and dangerously unstable.

There's a long way to go.

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The biggest driver of inflation is inflation expectation. The way to win the game of capitalism is to under consume and spend the excess on rent seeking assets. Which is all well and good until we all try and do it. If we all try and do it we get deflation. The government need to become buyer of last result and borrow and spend (which they are doing ) in my opinion..

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My bet is. a)They will never raise rates, ever. B) At some point in the far flung future they will invent the 'new' monetary system and c) The BOE and chums are just overpaid lackeys that just spend each month sitting around re-jigging the press releases they are going to hand out this time.

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Just imagine the carnage if interest rates returned to normal.

"Normal" seems to have been re-jigged to mean rates that suit a certain sector of the economy rather than being set by market conditions as was the case since interest rates came into existence, three hundred odd years ago.

Any change whether up or down will shock a certain part of the public who have become economical lethargic. We have to remember that many recent mortgage holders may have had nearly a decade of living in an excessively benign economy. They will have "budgeted" assuming that situation is their norm. Their lack of comment from many is testament to this.

The mere thought of rates rising is leaving many speechless.

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It seems to me that the BoE are yet again trying to use a form of "forward guidance" in an attempt to bring forward any last drop of spending.

People hearing that the BoE might be looking at current dropping prices switching suddenly to rising prices might be lured into spending now rather than waiting.

I personally can't see them raising rates for at least a year or two and even then we might see very slow recovery.

It seems to me that the BoE are yet again trying to use a form of "forward guidance" in an attempt to bring forward any last drop of spending.

People hearing that the BoE might be looking at current dropping prices switching suddenly to rising prices might be lured into spending now rather than waiting.

I personally can't see them raising rates for at least a year or two and even then we might see very slow recovery.

We'll do whatever the yanks do, as per usual.

Admittedly i went a long time ago (like 5 years ago) from being a schiff/mish goldbuggy type towards denningers views. He seems of the opinion the yanks have no choice but to reign in printing and perhaps slowly raise rates...something to do with pensions (annuities?) imploding if they don't

Of course, there still remains the possibility we'll be like Japan, but they have a quite different economic context to us and the yanks.

Edited by Executive Sadman

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We'll do whatever the yanks do, as per usual.

Admittedly i went a long time ago (like 5 years ago) from being a schiff/mish goldbuggy type towards denningers views. He seems of the opinion the yanks have no choice but to reign in printing and perhaps slowly raise rates...something to do with pensions (annuities?) imploding if they don't

Of course, there still remains the possibility we'll be like Japan, but they have a quite different economic context to us and the yanks.

The low rates are slowly killing wall street's banks so the Fed will do what it's told and raise rates. It never pays to go against the boss- and the Fed is owned by the wall street banks.

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The low rates are slowly killing wall street's banks so the Fed will do what it's told and raise rates. It never pays to go against the boss- and the Fed is owned by the wall street banks.

Don't see how raising rates helps the banks.

Banks have liability's on one side of their balance sheet and assets (loan paper) on the other. Raising rates just increases their liability's year on year and makes their assets worth less (loan less likely to be paid).

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Don't see how raising rates helps the banks.

Banks have liability's on one side of their balance sheet and assets (loan paper) on the other. Raising rates just increases their liability's year on year and makes their assets worth less (loan less likely to be paid).

Buy low sell high surely

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The low rates are slowly killing wall street's banks so the Fed will do what it's told and raise rates. It never pays to go against the boss- and the Fed is owned by the wall street banks.

Apparently the US economy is doing rather well at the moment.....they will rise we will follow, always have always will?....only a matter of time.... ;)

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