Bank of England ready to raise UK Interest Rates this year - Bailey

[petetong]

13 hours ago, zugzwang said:

He was one of the literal handful of professional economists to call the GFC correctly. No-one at the Bank of England did.

I posted his predictions in another thread and was told he was an idiot because of his views on crypto 🤣

[dpg50000]

11 hours ago, gruffydd said:

Something they do care about is consumer confidence, which just plunged by 5 points - and no doubt is continuing to plunge... not that the consumer media reported any of this: https://www.cityam.com/anxiety-about-soaring-living-costs-weighs-down-uk-consumer-confidence/

 

All that will do is give them a further excuse not to raise rates and likely just print more money. These thieves won't stop at anything to prop up house prices.

[Si1]

17 minutes ago, dpg50000 said:

All that will do is give them a further excuse not to raise rates and likely just print more money. These thieves won't stop at anything to prop up house prices.

I fully expect them to lower interest rates and expand QE owing to the deflationary effects of inflation.

[satsuma]

4 minutes ago, Si1 said:

I fully expect them to lower interest rates and expand QE owing to the deflationary effects of inflation.

Problem is there’s no more bullets left in the Arsenal as they have arsed about for decades.  I can see people being priced out and being unable to afford, then there’s people thinking that the item they wanted will be cheaper if they wait and dats your deflation cycle starting up.  Along they come with cuts but you can only cut so much and we’re back to asset bubbles and everything is fernucked.

[dpg50000]

2 minutes ago, satsuma said:

Problem is there’s no more bullets left in the Arsenal as they have arsed about for decades.  I can see people being priced out and being unable to afford, then there’s people thinking that the item they wanted will be cheaper if they wait and dats your deflation cycle starting up.  Along they come with cuts but you can only cut so much and we’re back to asset bubbles and everything is fernucked.

Some stuff, consumer electronics in particular, has been in a deflationary spiral for years. Doesn't stop people buying them.

[Locke]

18 hours ago, henry the king said:

It will still inflate us out of debt.

Are you able to give an example of when a government has successfully inflated its way out of debt?

[Locke]

26 minutes ago, dpg50000 said:

Some stuff, consumer electronics in particular, has been in a deflationary spiral for years. Doesn't stop people buying them.

Yep, and that doesn't stop brain dead Keynsianistas from repeating the deflationary spiral BS.

[zugzwang]

4 minutes ago, Locke said:

Are you able to give an example of when a government has successfully inflated its way out of debt?

The entire world did it in the postwar decades 1945-65.

[Locke]

21 minutes ago, zugzwang said:

The entire world did it in the postwar decades 1945-65.

Wasn't there some event just prior which decimated advanced economies and seriously weakened Government's grip on peoples' lives?

[winkie]

Who needs to rise rates when can just talk about raising them....does the same trick.

[henry the king]

33 minutes ago, Locke said:

Are you able to give an example of when a government has successfully inflated its way out of debt?

2010-2013 hey successfully had high inflation and inflated away some of the debt. That is what happens again

[Locke]

33 minutes ago, henry the king said:

2010-2013 hey successfully had high inflation and inflated away some of the debt. That is what happens again

Lol.

[Flat Bear]

10 hours ago, Locke said:

Are you able to give an example of when a government has successfully inflated its way out of debt?

Very good point

[IMHAL]

16 hours ago, Locke said:

Are you able to give an example of when a government has successfully inflated its way out of debt?

Well I don't know the in's and out's of how this works, but, if the government secured debt at a rate of X%  for 10 years (for example) and they pays that back with devalued sterling. Is that not the same as inflating away debt? Just as taking on a fixed rate mortage at 2% for 5 years and then everyone getting a 20% pay rise over the term of the mortage...effectively your debt has been eroded.  

Edited September 29, 2021 by IMHAL

[Pmax2020]

I think they reality is that any interest rises are going to very small incremental. As counter intuitive as it is, I think it’s inconceivable the base rate hits 2% during 2022. 

[A.steve]

16 hours ago, Locke said:

Are you able to give an example of when a government has successfully inflated its way out of debt?

That's the sort of question I love... i.e. one that can only have arisen in the context of a fantastic sequence of misguided assumptions.

With fiat, national currency and national central banks, it doesn't matter at all what the nominal value of sovereign debt might be - does it?  Perhaps the ratio of debt to economic activity is important - or, maybe, that's also a misguided assumption? 

The only thing that really matters is the distribution of benefit of credit and the distribution of responsibility for debt among people... which, entertainingly, is something about which we have hardly any information.

[Locke]

8 hours ago, IMHAL said:

Well I don't know the in's and out's of how this works, but, if the government secured debt at a rate of X%  for 10 years (for example) and they pays that back with devalued sterling. Is that not the same as inflating away debt? Just as taking on a fixed rate mortage at 2% for 5 years and then everyone getting a 20% pay rise over the term of the mortage...effectively your debt has been eroded.  

I am familiar with the theory. Can you give me an example of when a government has tried it and it has worked?

[Social Justice League]

I think Western consumer economies grabbed their chests in the late 1980's.  Since then they've had a tube up their ar$e on life support.

In 2008 they should have kicked the bucket but were brought back as zombies.  Zombie states, Zombie companies, Zombie banks and Zombie borrowers.  All Zombies together in 2021.