King Merv welcomes lower pound

[Sandwiches33]

http://www.msn.com/en-gb/money/topstories/lord-king-lower-pound-a-welcome-change/ar-BBxfZCp?li=BBoPWjQ

 

"During the referendum campaign, someone said the real danger of Brexit is you'll end up with higher interest rates, lower house prices and a lower exchange rate, and I thought: dream on."

Because that's what we've been trying to achieve for the past three years and now we have a chance of getting it."

....Fkn...

[TheCountOfNowhere]

Beat you to that one by a day

 

You thread tittle is a little less cryptic than mine tho

 

 

[zugzwang]

Clown still hasn't worked out that imported inflation presents itself in food and fuel prices first, leaving consumers with lower disposable incomes than before, thus imparting a disinflationary bias on the rest of the economy. At the same time, reducing interest rates has devastated the incomes of savers still further. Neither of these outcomes ought realistically to be described as welcome, more like the inevitable consequences of decades of failed monetary policy for which he is directly and personally responsible.

[Sandwiches33]

27 minutes ago, TheCountOfNowhere said:

Beat you to that one by a day

 

You thread tittle is a little less cryptic than mine tho

 

 

Haha, sorry for the double post, I just read that shit in total disbelief. I can understand why these people are often lying sociopaths, only someone of that mindset could with a straight face say such things.

[Errol]

What was his pension again?

[spyguy]

Problem is, sterlings last 2 lurches down were in 1992 and 1966 - its the dollar that counts, most world trade is dollar denominated.

In 66 brits barely went abroad and holidayed at home.

In 92 you still had a lot of people in the workforce, so exports recovered.

2016? Using kids school as an example, 60% of the parents are either on benefits, of one for or another, or work in he public sector.. Of the remaining 40%, most work in retail or some consumption/UK service. There's only one or two who do any job that produces anything thats exported.

BoE,, bang macro economists, will be banging on about equilibrium, ignoring that they were responsible for the massive blow out in current account deficit.

 

There'll be a disaster and some comment around 'the model not working'

[eek]

Just now, spyguy said:

Problem is, sterlings last 2 lurches down were in 1992 and 1966 - its the dollar that counts, most world trade is dollar denominated.

In 66 brits barely went abroad and holidayed at home.

In 92 you still had a lot of people in the workforce, so exports recovered.

2016? Using kids school as an example, 60% of the parents are either on benefits, of one for or another, or work in he public sector.. Of the remaining 40%, most work in retail or some consumption/UK service. There's only one or two who do any job that produces anything thats exported.

BoE,, bang macro economists, will be banging on about equilibrium, ignoring that they were responsible for the massive blow out in current account deficit.

 

There'll be a disaster and some comment around 'the model not working'

All true but utterly irrelevant. We can't live on the never never and the structural issues within the economy (both exports and government borrowing) had to be fixed at some point.

Brexit possibly brought that day of reckoning forward a bit but to be honest probably not by much - these issues would have become obvious in the next few months regardless.

It's why I've not commented in the other Currency depreciating thread - there is a reason why no one is panicking about it, the depreciating is necessary, expected and wanted.

[onlyme2]

16 minutes ago, Errol said:

What was his pension again?

 

£7million. Lucky the pension pot did so well in TIPS when the bank decided to overtly manipulate interest rates down. The pension pot was almost entirely in TIPS, a more lopsided investment you could only conceive if you had the ability to manipulate markets to suit your investment strategy.

Edited October 11, 2016 by onlyme2

[TheCountOfNowhere]

39 minutes ago, zugzwang said:

Clown still hasn't worked out that imported inflation presents itself in food and fuel prices first, leaving consumers with lower disposable incomes than before, thus imparting a disinflationary bias on the rest of the economy.

Im sure he has.

The MSM do like to tell the prolls they'll be okay.

[TheCountOfNowhere]

36 minutes ago, Sandwiches33 said:

Haha, sorry for the double post, I just read that shit in total disbelief. I can understand why these people are often lying sociopaths, only someone of that mindset could with a straight face say such things.

It's called....PROPAGANDA.

 

Look what hitler managed to do with such a tool.

[Sandwiches33]

yeah and the banksters  who funded him were never caught either

[billybong]

Quote

 

During the referendum campaign, someone said the real danger of Brexit is you'll end up with higher interest rates, lower house prices and a lower exchange rate, and I thought: dream on."

Because that's what we've been trying to achieve for the past three years and now we have a chance of getting it."

 

Who is this "we" that have been trying to achieve "lower house prices".  

It can't be the government that introduced HtoB just 3 years ago along with all the other policies supportive of high house prices not to mention the grossness of house prices rises in London.

On that basis it just sounds like yet another (maybe populist) pack of lies.

Edited October 11, 2016 by billybong

[kzb]

Personally I think this latest step down was to show Theresa who is really in charge.

Only last week she said we are coming after you (meaning the tax-dodging elite).  Then this "fat finger" event happens...

[TheCountOfNowhere]

There seems to be a few credable people in the news telling us that low £££s are great.

These are the same people who let the housing bubble happen.

I personally suspect an ulterior motive.  People who were in charge before the bankiong crisis should be in jail not telling us how great it will be to pay more for food.

[wonderpup]

I keep hearing that rising retail prices due to devaluation represent 'inflation'- is this correct? I always understood that to get inflation you needed wage rises as well. In the absence of increasing wages isn't a price rise just a price rise?

[billybong]

Quote

 

“The UK economy is rebalancing amazingly well.

 

If the economy is rebalancing a bit (I doubt if any rebalancing can really justify using the word "amazing") it'll be because of the medium term trend in the pound (for instance against the dollar, yen and the euro) rather than due to the brief blip in value since the referendum and which might or might not continue.

2007/2008 was a nose bleed level.  If 2015 can now be described as that then it augurs very badly for the British economy (partly because the rebalancing is so not amazing) but that's nothing to do with the outcome of the referendum vote, it was that bad to start with.

 

Quote

“History is going to judge that Brexit at last broke the political-economy lock of a British elite wedded to banking interests, even if it happened completely by accident,” he said.

Seems a bit optimistic and maybe premature (work still to do?) but if it's true why not attribute the electorate or at least a lot of the electorate with knowing what they intended to do rather than it happening "completely by accident".

Edited October 11, 2016 by billybong

[durhamborn]

More great news for the young though.Working and paying into a workplace pension with £s while foreign currency buyers can bid up the stock markets pushing yields down even more so their saving needs to increase by 30%+ to get the terrible pension they thought they would get.

A housing and stockmarket crash wont help the young much if sterling buyers are at a huge disadvantage to foreign buyers.

The elite were already hedged though waiting to snap up assets, because if they werent interest rates would already of gone up

[durhamborn]

Earlier today

Speaking to the Treasury Select Committee, the Monetary Policy Committee's newest member, Michael Saunders, said the Bank of England could "look through" the impact that Sterling's fall might have on prices, even if it lasted for many years.

His remarks helped to staunch the bleeding in fixed income markets, sending yields on the benchmark 10-year Gilt lower by five basis points to 0.97%.

However, Saunders also said further weakness in Sterling would not surprise him and the pound duly obliged, retreating 0.78% to 1.2264.

 

We dont care if the shelves empty or the low paids food bill rockets, we arent putting interest rates up to hurt BTL.

[TheCountOfNowhere]

4 minutes ago, durhamborn said:

Earlier today

Speaking to the Treasury Select Committee, the Monetary Policy Committee's newest member, Michael Saunders, said the Bank of England could "look through" the impact that Sterling's fall might have on prices, even if it lasted for many years.

His remarks helped to staunch the bleeding in fixed income markets, sending yields on the benchmark 10-year Gilt lower by five basis points to 0.97%.

However, Saunders also said further weakness in Sterling would not surprise him and the pound duly obliged, retreating 0.78% to 1.2264.

 

We dont care if the shelves empty or the low paids food bill rockets, we arent putting interest rates up to hurt BTL.

Let's see if the poor, the young and the hungry look though it.

The BoE wants to inflate the debt away...at all costs.

These people are looking more and more like organized criminals every day (IMHO)

Edited October 11, 2016 by TheCountOfNowhere

[billybong]

It doesn't even seem to matter that they've lost all credibility and things seem to be disintegrating for them politically ("the impact"?) - they must think that come what may they just won't be affected.

Even for them there'll be limited space in their cushy underground bunkers with underground railways etc.

Edited October 11, 2016 by billybong

[durhamborn]

Just now, TheCountOfNowhere said:

Let's see if the poor, the young and the hungry look though it.

The BoE wants to inflate the debt away...at all costs.

And protect the banks.Assets are all priced so highly they know the slightest increase could crash everything.They like "looking through",its what banana republics do.

[spyguy]

4 minutes ago, TheCountOfNowhere said:

Let's see if the poor, the young and the hungry look though it.

The BoE wants to inflate the debt away...at all costs.

These people are looking more and more like organized criminals every day (IMHO)

but, strangely, not their own pension.

[billybong]

"Looking through" - that's doing the same as Alice did isn't it.

Whatever - they can claim to be looking through whatever they like but they're completely inept at it - like their Forward Guidance.

Edited October 11, 2016 by billybong

[TheCountOfNowhere]

14 minutes ago, billybong said:

"Looking through" - that's doing the same as Alice did isn't it.

Whatever - they can claim to be looking through whatever they like but they're completely inept at it - like their Forward Guidance.

It's not inept....IT WAS PROPAGANDA, designed to keep society compliant.

At every turn the bankers/politicians have lied.  They did not have  ( and dont have IMHO ) any plan to raise IRs or stop printing money. 

Their only plan is MORE IMMIGRATION and MORE DEBT.

Collpase is the only way out now....what that means for anyone is anyones guess.

 

TPTB did not expect BrExit.  It was the last chance for the people to get TPTB to stand up and listen and to change tact.

Westminster/BoE have suddendly become very happy with BrExit and are pushing it now, that can mean only 1 thing.

I suspect the 1%ers have worked out how to turn BrExit to their advantage, i.e. collapse the £, buy assets on the cheap cheap ( even more expensive for us of course ).  Assets they will then inflate the price of with 0% IRS, -ve rates and more and mroe QE.

Eventually the currency will collapse and the only thing worth anything in the UK will be owned by the international elite.

 

[adamLancs]

My (thankfully, fairly small) trading account got hurt badly by the recent £ slide, I won't be touching that for a while now. Something is seriously wrong when it drops from 1.26 to 1.12 in 20 seconds or whatever it was. It was quick. I would usually say such an event would set the stage for a £ comeback but I just don't have the balls to put a trade back on right now, especially with the current rhetoric. The £ is in freefall.