Chief snake oil salesman speaks out on inflation...

[TheCountOfNowhere]

"Bank of England chief economist Andy Haldane warns over 'nasty' inflation that could send debt costs spiralling out of control

The Bank of England must have a 'laser focus' on inflation to stop Britain's debt costs spiralling out of control, its chief economist has said.

Andy Haldane has said that the vast amounts of Government spending and quantitative easing in the economy have made the Bank 'super-vigilant' about a possible rise in inflation.

### TCON, Vigilant on house prices = Let them go up....Super Vigilant on inflation = Let it go up and up and up.

The 53-year-old said: 'The last thing the world needs right now is a nasty inflation surprise.'

Bank of England chief economist Andy Haldane said the amounts of Government spending and quantitative easing has made the Bank 'super vigilant' about a possible rise in inflation

Britain is now extremely vulnerable to a rise in inflation as national debt rises over 100 per cent of GDP to its highest level since the early 1960s.

If the Bank increases interest rates to keep inflation down the cost of servicing that debt will rocket, threatening the UK's recovery. 

Haldane said the Bank would be prepared to allow inflation to overshoot its 2 per cent target temporarily,especially if it was as a result of temporary effects such as changes to VAT, oil prices or the exchange rate.

#### TCON: Yeah, temporary imflation, permanent price rises.  VAT to rise ?  £ to collapse ?  These people are out of control;

He said: 'We'd be super vigilant, with so much monetary stimulus and fiscal stimulus having been put in the system, that this doesn't show up in any more medium-term measures.

'What can even appear to be a temporary effect, if it affects expectations it could easily get locked in.

'We're not there at the moment, but it's definitely a risk we need to take care of.' The economist, who recently predicted that consumers would splurge £100billion of pandemic savings and boost the recovery, said he was confident about the economy in the second half of 2021 thanks to coronavirus vaccines.

Consumers have been happy to switch their spending from holidays, commuting and eating out to sofas, DIY kit and online streaming subscriptions.

An explosion of spending could push prices up, forcing central bankers to react fast.

The base rate has been at record lows ever since the financial crisis, hitting savers, but providing a boon to those with mortgages and debt.

Haldane added: 'If this year has taught us anything, it's that we need to be super-sensitive and super-responsive to the data.

###  TCON...Unless it's the good temporary kind of inflation

https://www.thisismoney.co.uk/money/markets/article-9083509/Bank-England-chief-economist-Andy-Haldane-warns-inflation.html?

"

So there you have it folks.

Inflation to be let rip, IRs will be keep at 0, and they will ignore it until it's too late just because they know it'll collapse their unearned untaxed wealth.

Ed Balls and Broon should be jailed for the handing these unelected ****s power.

Edited December 24, 2020 by TheCountOfNowhere

[TheCountOfNowhere]

People should be very worried about this.  it's the last roll of the dice.

They're basically going to ignore the inflation that they themselves are trying to cause and keep IRs at 0 ( -ve ) so their own asset prices dont fall and the government can keep serving the magicked up debt that they themselves have generated.

holy ****, this man should be arrested just for admitting this.

[Huggy]

 

super-vigilant

I was a little bit worried about the coming crisis, but now my fears have been allayed.

Actually, after this next crisis they will have to up their game and become mega-vigilant I reckon.

Edited December 24, 2020 by Huggy

[TheCountOfNowhere]

 

I was a little bit worried about the coming crisis, but now my fears have been allayed.

Actually, after this next crisis they will have to up their game and become mega-vigilant I reckon.

Almost £1Tn of magicked up cash says the coming crisis is already here.

[steve99]

 

Almost £1Tn of magicked up cash says the coming crisis is already here.

Depends where its gone. Hived off into tax free havens and mega yachts, local house prices and so on but not wages and mega demand for most goods and services.  I can see the price of classic cars, bit coin, gold, mansions and fine art going up but not the CPI.

[Si1]

So he's saying we need to be wary of inflation but ignore it and hope interest rates don't go up? Has he been on the BoE Christmas brandy?

[jiltedjen]

 

Depends where its gone. Hived off into tax free havens and mega yachts, local house prices and so on but not wages and mega demand for most goods and services.  I can see the price of classic cars, bit coin, gold, mansions and fine art going up but not the CPI.

so basically anything with value is going up, everything tied to incomes staying tied to incomes.

Its still inflation, its still the value of your savings/wages dropping even if you can afford bread. 

[dances with sheeple]

Yawn, they have been trying to make inflation since 2008, US financial media are banging the higher rates/inflation drum a lot at the moment though. Now that we have a "deal" with the EU shouldn`t we be flooded with cheap products from struggling EU producers?

[Arpeggio]

Eventually they won't bother hiding it anymore and just laugh while saying "F*ck you plebs".

By the way I'm not joking.

[Money Frugality]

Rates will hit 0 before they go up.. Negative not an option.. Rampant inflation is a pipe dream.. Tell me where and how I'm wrong? 

[TheCountOfNowhere]

 

So he's saying we need to be wary of inflation but ignore it and hope interest rates don't go up? Has he been on the BoE Christmas brandy?

That's exactly what he's saying.  Also, there is a **** the poor in there for good measure.

[TheCountOfNowhere]

 

Rates will hit 0 before they go up.. Negative not an option.. Rampant inflation is a pipe dream.. Tell me where and how I'm wrong? 

house prices.

[TheCountOfNowhere]

 

Eventually they won't bother hiding it anymore and just laugh while saying "F*ck you plebs".

By the way I'm not joking.

They already are.

[TheCountOfNowhere]

 

Yawn, they have been trying to make inflation since 2008

Bought a house lately ?

[TheCountOfNowhere]

 

so basically anything with value is going up, everything tied to incomes staying tied to incomes.

Its still inflation, its still the value of your savings/wages dropping even if you can afford bread. 

Yes, we supprot their wealth while being allowed to keep nothing.

 

I look forward to the revolution.  

 

Merry Christmas one and all ( except bankers, 2nd hand house salesmen and BTL scum )

Edited December 24, 2020 by TheCountOfNowhere

[Arpeggio]

 

They already are.

Agree. What can we do about it?

[markyh]

 

Depends where its gone. Hived off into tax free havens and mega yachts, local house prices and so on but not wages and mega demand for most goods and services.  I can see the price of classic cars, bit coin, gold, mansions and fine art going up but not the CPI.

As Tony Montana once said, "First you get the Bitcoin, then you get the power, then you get the Gold, mansions, classic cars and fine art, then you get the Women". 

[jiltedjen]

We already have inflation it’s somewhere around the 20% mark this year, it’s rising all boats, apart from wages and goods tied to wages

meanwhile in the last year:

house prices +20%

gold +20%

bonds +20%

shares +20%

Bitcoin +250%
 

which means cash is -20% in purchasing power. 

Think about it, a £1 loaf of bread doesn’t cost £1 in countries where you earn 10p a day. 

AND that’s just the start! 

We will get negative rates, which will cause the higher LTV to go up, and the lower LTV to go to just above zero. 

I would argue that once the virus’s is over that wages will bounce back hard also, jobs offering 40% more to move roles etc

if that’s not inflation what is? 
 

It’s been obvious that cash has been a stupid place to be for years, anyone saving for anything longer than 12 months should have a diversified portfolio, or have your spending value sucked away from you in 20% chunks each year 

the government will continue to under-state inflation as that’s pretty easy to do when the stuff in the basket is tied to wages, and doesn’t contain any actual value stores! 
 

Edited December 24, 2020 by jiltedjen

[spyguy]

BoE does set the price of money. The FED does.

The US is spluring huge cash sums on Americand.

This will cause prices to rise and tghee Fed will raise rates.

The BoE n ECB will have to follow, no matter what.

[Tapori]

 

[winkie]

There will be inflation.....built in, but this time living cost inflation.......how can anyone expect so much fiat pumped into the economy without it.....debt is free, money is worthless until you need it.....see you have it, then decide where to spend it.

[Pindar]

The mechanism by which a lot of this printed money will spill over into the economy is not increasing the amount of money in circulation, except between borrowers and lenders. I therefore cannot see how we'll get severe inflation, at least not in the debt-busting sense. If anything, the inflation might be in food prices, supply shocks etc. 

[24gray24]

When you've got 50 million Americans beginning to starve, and only a cheque for a thousand bucks to cover them for a year's lost wages, what happens then is inflation? 

Inflation? 

Cascade of unpaid debts,evictions,  foreclosures, bankruptcies. .. 

He must have been talking to a different demographic. Not main St. 

Who suffers inflation then? The super rich luxury goods sector?

I don't get it.

[Si1]

 

When you've got 50 million Americans beginning to starve, and only a cheque for a thousand bucks to cover them for a year's lost wages, what happens then is inflation? 

Inflation? 

Cascade of unpaid debts,evictions,  foreclosures, bankruptcies. .. 

He must have been talking to a different demographic. Not main St. 

Who suffers inflation then? The super rich luxury goods sector?

I don't get it.

No one gets Haldane. He has a tenuous connection to reality but clearly has connections and office skills.

[LetsBuild]

 

The mechanism by which a lot of this printed money will spill over into the economy is not increasing the amount of money in circulation, except between borrowers and lenders. I therefore cannot see how we'll get severe inflation, at least not in the debt-busting sense. If anything, the inflation might be in food prices, supply shocks etc. 

I generally agree with this, the one exception is bounce back loans, they have been poring money into god knows what - mostly property I suspect which explains this years rise.

On the other hand lots of people have been made redundant, salary reduction and furlough so this would be deflationary, no?

Maybe an upcoming supply shock will do it (Covid container crisis and China power shutdown from lack of Australian coal).