winkie Posted May 30, 2023 Share Posted May 30, 2023 (edited) The bank of England bought £65 billion pounds of bonds during the pandemic, not surprising have so much inflation, where did they expect the money to go? This forcast was't very accurate. Edited May 30, 2023 by winkie Quote Link to comment Share on other sites More sharing options...
A.steve Posted May 30, 2023 Share Posted May 30, 2023 1 minute ago, winkie said: This forcast was't very accurate. But... the forecast was very predictable. Look how quickly the most expected value settles at the 2% target. It's almost as if that part of the graph was fixed - and the rest of it was only make-believe. Quote Link to comment Share on other sites More sharing options...
scottbeard Posted May 30, 2023 Share Posted May 30, 2023 47 minutes ago, The Angry Capitalist said: Why not just keep interest rates at zero, then? Why not just print money to infinity and tell the plebs to work harder? You literally said that if inflation remains modestly high for 10 years there will probably be heads on spikes A sight not seen in the UK for over 500 years Then when challenged you suggest the poster wants zero interest rates? You need a little balance and explore the middle ground more ... Quote Link to comment Share on other sites More sharing options...
A.steve Posted May 30, 2023 Share Posted May 30, 2023 1 minute ago, scottbeard said: You need a little balance and explore the middle ground more ... Did you not realise that you were responding to someone called "The Angry Capitalist"? The middle ground is no-man's-land in an epic battle between competing unhinged ideologies against an incoherent backdrop of nonsense. Is any alternative feasible? Quote Link to comment Share on other sites More sharing options...
cnick Posted May 30, 2023 Share Posted May 30, 2023 11 hours ago, henry the king said: A huge part of the issue is the BoE have no credibility........ Does the FED have credibility?........ maybe its the whole banking system that has no credibility. ? Quote Link to comment Share on other sites More sharing options...
Bob8 Posted May 30, 2023 Share Posted May 30, 2023 18 minutes ago, scottbeard said: You literally said that if inflation remains modestly high for 10 years there will probably be heads on spikes A sight not seen in the UK for over 500 years Then when challenged you suggest the poster wants zero interest rates? You need a little balance and explore the middle ground more ... It seems harsh for a poster who states he is emotional in his name to be criticised for being emotional. It also seems strange for a poster who states he is emotional in his name to not otherwise acknowledge he is being emotional. Quote Link to comment Share on other sites More sharing options...
70PC Posted May 30, 2023 Share Posted May 30, 2023 Patient to doctor: I have been dieting for 6 months and still can't fit into my clothes. Clearly eating less food was not the solution Quote Link to comment Share on other sites More sharing options...
The Angry Capitalist Posted May 30, 2023 Share Posted May 30, 2023 46 minutes ago, scottbeard said: You literally said that if inflation remains modestly high for 10 years there will probably be heads on spikes A sight not seen in the UK for over 500 years Then when challenged you suggest the poster wants zero interest rates? You need a little balance and explore the middle ground more ... The poster alluded to Zimbabwe and argued that the Brits would just shrug off the problem and move on. If things are not addressed we will be in a situation not seen since 500 years ago. We are in an extreme situation that will require extreme measures to solve. My argument was the government's main priority is inflation. The poster disagreed to which my response was to question why not take rates back to zero. If the government didn't consider inflation the priority they would have done that hence my argument. You need to read between the lines. Quote Link to comment Share on other sites More sharing options...
Bob8 Posted May 30, 2023 Share Posted May 30, 2023 2 minutes ago, The Angry Capitalist said: The poster alluded to Zimbabwe and argued that the Brits would just shrug off the problem and move on. If things are not addressed we will be in a situation not seen since 500 years ago. We are in an extreme situation that will require extreme measures to solve. My argument was the government's main priority is inflation. The poster disagreed to which my response was to question why not take rates back to zero. If the government didn't consider inflation the priority they would have done that hence my argument. You need to read between the lines. No, that is a lie. Or you are genuinely stupid, in which case I accept that. He stated that we are very unlikely to end up in a Zimbabwe situation, which is not the same as not dealing with the problems we have. Thinking a broken leg should be fixed does not require us to think it is the Black Death. Since 1523, we have had a reformation, a civil war, an invasion, succession crisis, Impending invasion from France and the battle of Waterloo, civic strife and charterism, pending invasion from Germany. You keep writing silly things and getting outraged that people recognise them as silly. Quote Link to comment Share on other sites More sharing options...
scottbeard Posted May 30, 2023 Share Posted May 30, 2023 12 minutes ago, The Angry Capitalist said: My argument was the government's main priority is inflation. Since Jeremy Hunt says the same as you I can't help but agree that it is, and they have said so! 13 minutes ago, The Angry Capitalist said: If things are not addressed we will be in a situation not seen since 500 years ago. We are in an extreme situation that will require extreme measures to solve. That is quite a bold viewpoint, which doesn't make it incorrect, but it needs to be put in context. You're saying that the current situation is worse than 5 centuries of wars, depressions, pandemics etc. and also worse than the 1970s when inflation was higher than it is today. I don't agree. 15 minutes ago, The Angry Capitalist said: You need to read between the lines. OK - but it's more helpful to post your actual considered view as per this recent post than outlandish stuff about heads on spikes, with the expectation that readers "read between the lines" to what you actually mean. Quote Link to comment Share on other sites More sharing options...
The Angry Capitalist Posted May 30, 2023 Share Posted May 30, 2023 1 minute ago, Bob8 said: No, that is a lie. Or you are genuinely stupid, in which case I accept that. He stated that we are very unlikely to end up in a Zimbabwe situation, which is not the same as not dealing with the problems we have. Thinking a broken leg should be fixed does not require us to think it is the Black Death. Since 1523, we have had a reformation, a civil war, an invasion, succession crisis, Impending invasion from France and the battle of Waterloo, civic strife and charterism, pending invasion from Germany. You keep writing silly things and getting outraged that people recognise them as silly. No Bob8. I am not outraged at all. You keep posting in reply to many of my threads with utter nonsense and your ignorance is beginning to infuriate me. Here is what he said: "We can look at places like Zimbabwe to see what really happens. Eventually their Government told people to forget about their failed currency and use USD or RSA instead." He flippantly replied and alluded to a situation where the UK government would just shrug their shoulders and tell the plebs to never-mind the inflation just get on with your lives like the example he gave and his wording. This goes back to my original response with that poster by stating inflation is the number one priority for the UK government and trying to show why. That poster disagreed and clearly you can see this by his responses. Quote Link to comment Share on other sites More sharing options...
The Angry Capitalist Posted May 30, 2023 Share Posted May 30, 2023 5 minutes ago, scottbeard said: Since Jeremy Hunt says the same as you I can't help but agree that it is, and they have said so! That is quite a bold viewpoint, which doesn't make it incorrect, but it needs to be put in context. You're saying that the current situation is worse than 5 centuries of wars, depressions, pandemics etc. and also worse than the 1970s when inflation was higher than it is today. I don't agree. OK - but it's more helpful to post your actual considered view as per this recent post than outlandish stuff about heads on spikes, with the expectation that readers "read between the lines" to what you actually mean. Although it is highly unlikely we could possibly go down the road of hyperinflation. Look at Weimar Germany and other places that have experienced this. It wasn't pretty. I would say that is an extreme situation. Has Britain ever had this? Not to my knowledge. Not saying my viewpoint is correct. I am just trying to show how precarious Britain's situation is. I do think the inflation problem will be solved. But it could easily get out of control. Quote Link to comment Share on other sites More sharing options...
scottbeard Posted May 30, 2023 Share Posted May 30, 2023 37 minutes ago, The Angry Capitalist said: I do think the inflation problem will be solved. But it could easily get out of control. Quite so, agreed Also - the implications of sustained high inflation, even if not true HYPERinflation, are significant. If we have inflation running at 10-15% for the next 10 years that's very serious, even if it doesn't meet the definition of hyperinflation. Quote Link to comment Share on other sites More sharing options...
The Angry Capitalist Posted May 30, 2023 Share Posted May 30, 2023 15 minutes ago, scottbeard said: Quite so, agreed Also - the implications of sustained high inflation, even if not true HYPERinflation, are significant. If we have inflation running at 10-15% for the next 10 years that's very serious, even if it doesn't meet the definition of hyperinflation. Yes. Getting to the stage of hyperinflation takes gross incompetence but a few years of very high inflation will start to change people's mentality towards currency and the velocity of money could really go into overdrive. Once people start spending all their money as they receive it and don't save any of it then it can get out of control. Trust is lost and getting that back is close to impossible. What are rates in Argentina now? 90% +? And it is still not working. Quote Link to comment Share on other sites More sharing options...
Bob8 Posted May 30, 2023 Share Posted May 30, 2023 1 hour ago, The Angry Capitalist said: No Bob8. I am not outraged at all. You keep posting in reply to many of my threads with utter nonsense and your ignorance is beginning to infuriate me. Here is what he said: "We can look at places like Zimbabwe to see what really happens. Eventually their Government told people to forget about their failed currency and use USD or RSA instead." He flippantly replied and alluded to a situation where the UK government would just shrug their shoulders and tell the plebs to never-mind the inflation just get on with your lives like the example he gave and his wording. This goes back to my original response with that poster by stating inflation is the number one priority for the UK government and trying to show why. That poster disagreed and clearly you can see this by his responses. I am happy to accept you are right. I should warn you though, a rather hysterical person has been logging in to your account and writing hysterical posts. I suggest you update your password. Quote Link to comment Share on other sites More sharing options...
nero120 Posted May 30, 2023 Share Posted May 30, 2023 44 minutes ago, The Angry Capitalist said: Yes. Getting to the stage of hyperinflation takes gross incompetence but a few years of very high inflation will start to change people's mentality towards currency and the velocity of money could really go into overdrive. Once people start spending all their money as they receive it and don't save any of it then it can get out of control. Trust is lost and getting that back is close to impossible. What are rates in Argentina now? 90% +? And it is still not working. Or a deliberate effort to make a currency worthless to indirectly default on a debt owed (see the Weimar republic). Were the dollar to lose it's reserve status, how could the US repay it's $33 trillion or more of (official) debt (including unfunded liabilities it's in the hundreds of trillions). I would imagine hyperinflation would be a very tempting option in that circumstance... Quote Link to comment Share on other sites More sharing options...
winkie Posted May 30, 2023 Share Posted May 30, 2023 5 hours ago, A.steve said: But... the forecast was very predictable. Look how quickly the most expected value settles at the 2% target. It's almost as if that part of the graph was fixed - and the rest of it was only make-believe. No trust or credibility left.....talk a load of nonsense. Quote Link to comment Share on other sites More sharing options...
The Angry Capitalist Posted May 30, 2023 Share Posted May 30, 2023 2 hours ago, nero120 said: Or a deliberate effort to make a currency worthless to indirectly default on a debt owed (see the Weimar republic). Were the dollar to lose it's reserve status, how could the US repay it's $33 trillion or more of (official) debt (including unfunded liabilities it's in the hundreds of trillions). I would imagine hyperinflation would be a very tempting option in that circumstance... Even without losing reserve currency status I can't see how the US debt gets repaid unless with very high inflation as a minimum. $33 trillion is an unfathomable number. US is at a threshold like Britain, I think. Either deflation and positive rates or inflate & die. This is looking like the last chance for western economies to get their house in order. If not, it's looking like inflation will be the result. Quote Link to comment Share on other sites More sharing options...
cdd Posted May 30, 2023 Author Share Posted May 30, 2023 18 hours ago, Several said: People in their last couple of decades have less incentive to save! How do higher interest rates help to bring down inflation? Higher interest rates make it more expensive for people to borrow money and encourage people to save. Overall, that means people will tend to spend less. Quote Link to comment Share on other sites More sharing options...
Stewy Posted May 30, 2023 Share Posted May 30, 2023 1 hour ago, cdd said: How do higher interest rates help to bring down inflation? Higher interest rates make it more expensive for people to borrow money and encourage people to save. Overall, that means people will tend to spend less. And give the Bank Of Boomer more interest returns with which to enjoy their last decade or two. Quote Link to comment Share on other sites More sharing options...
Si1 Posted May 30, 2023 Share Posted May 30, 2023 4 hours ago, cdd said: How do higher interest rates help to bring down inflation? Higher interest rates make it more expensive for people to borrow money and encourage people to save. Overall, that means people will tend to spend less. They do the same to companies and increase unemployment, this damping pay demands too. At this level they deliberately break the economy a little bit to dampen inflation rather more ruthlessly. Quote Link to comment Share on other sites More sharing options...
A.steve Posted May 30, 2023 Share Posted May 30, 2023 6 hours ago, winkie said: No trust or credibility left.....talk a load of nonsense. I think that's their remit. Quote Link to comment Share on other sites More sharing options...
Bluto Bites Posted May 30, 2023 Share Posted May 30, 2023 Is extremely high inflation good news for those with mortgages? Quote Link to comment Share on other sites More sharing options...
scottbeard Posted May 30, 2023 Share Posted May 30, 2023 1 minute ago, Bluto Bites said: Is extremely high inflation good news for those with mortgages? Only WAGE inflation is good news, not food prices. Your dinner costing more doesn't make paying your mortgage easier The reverse in fact if it means interest rate rises without wage rises Quote Link to comment Share on other sites More sharing options...
nothernsoul Posted May 30, 2023 Share Posted May 30, 2023 Inflation is obviously a political and economic problem for politicians and central banks, but it isn't their main concern as it was in the 70s and 80s. In the US Paul Volcker was employed and given the green light to do whatever it took. In the UK I believe we had double digit interest rates. If it was their main concern we wouldn't have had the chancellor recently raising pensions and other benefits by 10 percent. Politicians would have made the public take the horrible medicine( as rightwing government s would have done in the late 70s) instead of subsidising electricity bills with billions of pounds. Politicians and central banks long term main concern, as it has been since the financial crisis, is fear of deflation and unpayable private debt pulling down the economy. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.