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Crumbless

Crashing pound, do they raise interest rates

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They should raise interest rates anyway. But not as a knee jerk to 'markets spooked by Brexit'. The markets should be far more spooked by the Eurozone. 

ZIRP plus zero growth is a fairly toxic mix for banks . . . ask the Italians.

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Will they f**k.

have people not worked it out yet...we are being robbed. Subjectgated. Impovrished.

They dont give a f**k about you and I. only themselves and their rich backers.

 

The only way they'll raise rates is if all hell breaks loose ( another collapse ) and/or the US raising rates ( wont happen till post Nov Election now ).

 

 

Edited by TheCountOfNowhere

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2 minutes ago, TheCountOfNowhere said:

Will they f**k.

have people not worked it out yet...we are being robbed. Subjectgated. Impovrished.

They dont give a f**k about you and I. only themselves and their rich backers.

 

+1

and it's an all party connivance with the rich bankers.

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12 minutes ago, TheCountOfNowhere said:

Will they f**k.

have people not worked it out yet...we are being robbed. Subjectgated. Impovrished.

They dont give a f**k about you and I. only themselves and their rich backers.

 

The only way they'll raise rates is if all hell breaks loose ( another collapse ) and/or the US raising rates ( wont happen till post Nov Election now ).

 

 

 

+2

When its in the interests of TPTB to raise interest rates, they'll do it. While its in our interests but not theirs, no chance. Who was it said "Power corrupts"?????

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Highly unlikely but on the bright side, the incentive for the millions of E Europeans to go home is stronger as they are getting more and more a devalued wages

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23 minutes ago, TheCountOfNowhere said:

Will they f**k.

have people not worked it out yet...we are being robbed. Subjectgated. Impovrished.

They dont give a f**k about you and I. only themselves and their rich backers.

The only way they'll raise rates is if all hell breaks loose ( another collapse ) and/or the US raising rates ( wont happen till post Nov Election now ).

TPTB will have assets in Sterling, comes a point they're also taking a hit.

We're about 80Cent down from height of 10 years ago, sometings got to give eventually.

Dropping rates was just pure insanity, and told the world he does not care if he trashes the currency.

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Whatever state it's in - I'm pretty certain the £ will still exist in a decade.

 

The Euro on the other hand? 50-50 at a very rough guess.

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No chance.

In 2011 RPI was over 5% but the base rate stayed at 0.5%

I suspect the pension age will rise first to keep people paying taxes for longer. Then when they have more people maxed out on debt with mortgages at around 4.5x joint income, they can raise the rate gradually. Then banks will take their pay rises each year via the increased mortgage payments, so their standard of living never improves. The household debt plateau taken on at historically low rates, will burden them forever.

 

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They'll have to raise interest rates if we can't afford to import essentials like fuel and food.

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12 minutes ago, Inoperational Bumblebee said:

I doubt they will. They want inflation to inflate away all this debt!

 

Interesting as I think Sainsburys PLc have already suggested they may not be able to pass on all import cost inflation. Suggests to me that they may take a margin hit to maintain sales. Have to wonder what it'll do the clothing retailers.

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Probably won't even get talked about until parity. We came from 2.1:1.3 and they did nothing so the policy is obviously not to protect the pound.

We will see higher prices though. Those that benefited so far will continue to benefit, now in even greater comfort.

My likely-outcome predictor tells me it will be some form of social upheaval that brings this thing to an end. After all property ownership is just a bit of paper. Things tend to get ugly when people lose hope.

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1 hour ago, Crumbless said:

On what basis are you making this claim?

 

Look at Purchasing Power Parity  the best measure of valuation.  Forget the Big Mac index. Just look at what things cost on the Continent compared to UK. From large expenses houses/rents are 2/3 times v generally the cost in the UK. To small things - example a lido ticket is typically £6 in UK £3 in Germany. Use Numbeo to check prices in different cities. 

People falsely assume currencies revert to a long term value. In actual facts they more likely revert to long terms trends viz a falling trend regarding £.  £ fell for decades against DE Mark. Went down to 2.3 DEM early 90s then bucked trend due to DE reunification. That is roughly the present level at 1 Euro = 2 DMs 

 

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34 minutes ago, interestrateripoff said:

We are involved in a currency war just like the 30s.  devaluation is the I'm of the game.

I haven't got a clue what's going on but this seems very possible to me. This is nothing to do with Brexit but they are using it and experimenting with it for devaluation.

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The whole thing is bizarre.

i was very anti-Brexit, but so far I am raking it in as a result. My pension is now up nearer £200k since the vote, I am half thinking of cashing out of shares into cash as we have a bit further to go. Literally this could bring retirement forward 10 years, as my pension is way exceeding my mortgage now. 

At the other end, I know lots of people who voted for Brexit who are stuffed as they have less investment and savings, and enjoyed the odd foreign holiday whilst their income hasn't risen.

 

 

 

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37 minutes ago, adamLancs said:

Probably won't even get talked about until parity. We came from 2.1:1.3 and they did nothing so the policy is obviously not to protect the pound.

We will see higher prices though. Those that benefited so far will continue to benefit, now in even greater comfort.

My likely-outcome predictor tells me it will be some form of social upheaval that brings this thing to an end. After all property ownership is just a bit of paper. Things tend to get ugly when people lose hope.

I think that is the point I am making above.

i am certainly a paper millionaire, as measured by current over inflated house prices, and for doing nothing the last few months my actual net worth has risen significantly.

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5 minutes ago, Mikhail Liebenstein said:

i was very anti-Brexit, but so far I am raking it in as a result. My pension is now up nearer £200k since the vote, I am half thinking of cashing out of shares into cash as we have a bit further to go. Literally this could bring retirement forward 10 years, as my pension is way exceeding my mortgage now. 

 

Hold stocks until the QE bubble/devaulation is over. I can see the ftse going much higher.

When they raise rates sell equities. (that could leave you in stocks for the next 20 years!)

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3 minutes ago, Mikhail Liebenstein said:

I think that is the point I am making above.

i am certainly a paper millionaire, as measured by current over inflated house prices, and for doing nothing the last few months my actual net worth has risen significantly.

No. The ruler you use to measure it has gotten smaller. Making your wealth seem larger.

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45 minutes ago, adamLancs said:

Probably won't even get talked about until parity. We came from 2.1:1.3 and they did nothing so the policy is obviously not to protect the pound.

We will see higher prices though. Those that benefited so far will continue to benefit, now in even greater comfort.

My likely-outcome predictor tells me it will be some form of social upheaval that brings this thing to an end. After all property ownership is just a bit of paper. Things tend to get ugly when people lose hope.

Lost hope a long time ago.

There is absolutely no hope now that anyone in Westminster of the banking system will do the decent correct thing.

The UK is f**ked, well and truly f**ked.  Hosue prices are the least of anyone's worries now.

The day that **** (IMHO) came out and printed more money after BrExit that was the end of it.  

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