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Guest Time 2 raise Interest Rates

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Guest Time 2 raise Interest Rates

Have I read the situation wrong here?

The BoE lowered interest rates to a ridiculously low level to encourage

people to borrow and spend which in turn has created a house price

bubble. Now a good deal of the population are maxed up to their

eyeballs in debt, they're saying hold on, you can't have a pay rise to

help compensate for keeping the economy afloat with your 1.2 trillion

pounds worth of debt because it's inflationary. And if you do, we will

just raise interest rates and bankrupt the lot of you.

You couldn't make it up, or have I got hold of the wrong end of the

stick?

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Guest Time 2 raise Interest Rates

whoops_apocalypse Thanks for that. It's just I've got a few friends

round to watch the fight. Been having a bit of a heated discussion

about debt and the economy (sad cases I know) but they don't seem

to agree with me.

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You couldn't make it up, or have I got hold of the wrong end of the

stick?

Spot on, and it feeds into itself, debt sucks disposable income out of the economy hence a slowdown in spending, which then causes a weaker job market and thus withstrains wage growth.

That's before you even start considering hyperinflation in things like energy.

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Have I read the situation wrong here?

The BoE lowered interest rates to a ridiculously low level to encourage

people to borrow and spend which in turn has created a house price

bubble. Now a good deal of the population are maxed up to their

eyeballs in debt, they're saying hold on, you can't have a pay rise to

help compensate for keeping the economy afloat with your 1.2 trillion

pounds worth of debt because it's inflationary. And if you do, we will

just raise interest rates and bankrupt the lot of you.

You couldn't make it up, or have I got hold of the wrong end of the

stick?

Too right!

I think it's Time 2 raise Interest Rates!

Well, get xmas out of the way first!

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The BoE lowered interest rates to a ridiculously low level to encourage

people to borrow and spend which in turn has created a house price

bubble

Yes, and they(BOE) did so by bankrolling lenders- alowing them to lend 8 ( or more?) times the amount of money they actually held. . A bit of short term nifty footwork.

They created wealth from thin air. That wealth is now debt and debt is very real.

So, flood the market with cheap credit and cheap labour from abroad and you have a boom. Now the gradual awakening and the payback hangover. Beggars belief as to how the bastards can do it and live with themselves ! Yes I know we have covered this in previuos posts but I fealt like a rant.

Amen.

Edited by RRP

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Anyone who has ever worked in the City will know how very much it is a Them and US environment. Yes, they let the barrow boys make money for them but, at the end of the day, those who run the big insitutions are very much old school/blue blood who think of us as serfs they control and own.

They really do not care if millions are in debt - in fact, they would welcome it IMPO.

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Guest Time 2 raise Interest Rates

Thanks for replies. It seems I'm barking up the right tree anyway.

Had one too many becks. Williams beat Harrison on points. Happy

days.

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Anyone who has ever worked in the City will know how very much it is a Them and US environment. Yes, they let the barrow boys make money for them but, at the end of the day, those who run the big insitutions are very much old school/blue blood who think of us as serfs they control and own.

They really do not care if millions are in debt - in fact, they would welcome it IMPO.

and they watch their armies of worker ants from the top floors of skyscrapers. Laughing, usually. :D

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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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