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Turned on the radio and it said :

"Pound has fallen sharply as the Bank of England gets ready to  implement negative interest rates. It means those with savings will lose out."

But I can't find anything about it online.

Anyone know what's happening?

 

 

Edited by Warlord
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Given how much food our country buys from abroad and the publicised campaigns about how some families couldn't fully feed their children before, this feels like it has the risk of becoming a vicious circle. I struggle to see the solution these days sadly, or maybe its just that we've reached a place where all the solutions inflict pain somewhere.

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GBP is up a cent versus USD since a week ago..... not much of a downward move. I do expect NIRP in December or Q1. 

Meanwhile printy printy

https://www.bbc.co.uk/news/business-54817872

While I think most on this site are here because we disagree with the way housing policy has been levied against those without for so many years now.... I'm sitting here with a large mortgage having seen them do all this in 2008 (a point when I'd just graduated and setting out and would have loved to buy something). 

If you're not keen on buying a house... I get that. But it's good to see most people here taking other hedges against stimulus.

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Why did no one see that coming.....theyt're paying for everything with magicked up cash...and that magicked up cash is basically stolen from us by devaluing the £.

 

.....and devaluing my mortgage :D 

I'd be mad if I was my parent's boomer neighbour that ha d a pile of cash (the same ones that told me to buy a house oooop north because I couldn't' afford one down south) and were waiting for prices to collapse to buy a bungalow. 

I did a hybrid of their advice and bought a bungalow in the southeast. It'll be a large house in a few years if all goes to plan. Need to really extend the mortgage before they print even more hey?

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  • 2 weeks later...

How Andy Haldane managed to blag his way into a position in economics is something of a mystery. He's like a mapmaker trying to increase the wealth of the country by drawing more resources on a map. By drawing a few gold mines and oil wells on a map of the UK we could all be rich!

Here's his latest drivel.

'Savers could be charged negative interest rates in future if the Bank of England successfully establishes a widely used digital currency, according to its chief economist.

Andy Haldane said central banks’ inability to effectively take rates below zero risks harming the economy by keeping the rate of interest too high, and so it could be useful to find a new way to further loosen.

There is a risk that people would hoard cash to avoid a negative interest rate on savings in banks. If a digital currency was issued, that would be harder to avoid''

https://www.theguardian.com/business/live/2020/nov/18/uk-inflation-cpi-clothing-food-ftse-bitcoin-business-live

I really hope a digital currency and negative interest rate is forced onto the British population. Not because it makes any kind of sense, but because it would cause people to move their wealth into a store of value as quickly as possible. Perhaps causing a run on the pound.

We've reached the point where complete collapse would be better than living under the rule of these incompetents. Give them as much power as possible and don't hold them back. The collapse will happen sooner and I'll have to spend less time reading such abysmal, school boy level 'economics'.

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There are those that are desperately hoping and willing inflation 0.5% a month = 6% inflation a year.......they say a good sign the economy is doing well, people spending more and cheap debt eroding.

What are the chances that:

a) real term inflation will become a real problem (for some).

b) that spending into the economy will increase.

;)

 

 

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There are those that are desperately hoping and willing inflation 0.5% a month = 6% inflation a year.......they say a good sign the economy is doing well, people spending more and cheap debt eroding.

What are the chances that:

a) real term inflation will become a real problem (for some).

b) that spending into the economy will increase.

;)

 

 

To increase the amount of spending more needs to be produced. If there are, for example, a hundred tons of cement, or fifty acres of land, or a thousand apples, or whatever available then it is not possible to buy two hundred tons of cement or a hundred acres of land or five thousand apples by printing more money. Printing a million billion pounds will not make an extra loaf of bread appear out of thin air.

I don't buy the argument that debt will be inflated away. The government is borrowing the money into existence, so government debt is increasing as the base money supply grows. Bank created money also needs to be borrowed into existence. So growth in the amount of money being circulated will matched by growth in debt.

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How Andy Haldane managed to blag his way into a position in economics is something of a mystery. He's like a mapmaker trying to increase the wealth of the country by drawing more resources on a map. By drawing a few gold mines and oil wells on a map of the UK we could all be rich!

Here's his latest drivel.

'Savers could be charged negative interest rates in future if the Bank of England successfully establishes a widely used digital currency, according to its chief economist.

Andy Haldane said central banks’ inability to effectively take rates below zero risks harming the economy by keeping the rate of interest too high, and so it could be useful to find a new way to further loosen.

There is a risk that people would hoard cash to avoid a negative interest rate on savings in banks. If a digital currency was issued, that would be harder to avoid''

https://www.theguardian.com/business/live/2020/nov/18/uk-inflation-cpi-clothing-food-ftse-bitcoin-business-live

I really hope a digital currency and negative interest rate is forced onto the British population. Not because it makes any kind of sense, but because it would cause people to move their wealth into a store of value as quickly as possible. Perhaps causing a run on the pound.

We've reached the point where complete collapse would be better than living under the rule of these incompetents. Give them as much power as possible and don't hold them back. The collapse will happen sooner and I'll have to spend less time reading such abysmal, school boy level 'economics'.

I'm still surprised central banks still have such tunnel vision. Surely there must be people in those institutions that can see through this?

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CPI just increased a further 0.2% 'unexpectedly'. Might delay NIRP for a little while longer.

Notayesmaneconomist has a few recent things to say about the non representative national statistics ahem suppressing signs of inflation (like house prices). Rather dodgy stuff.

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  • 439 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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