Time to raise the rents. Posted May 24, 2006 Share Posted May 24, 2006 http://www.kitco.com/charts/livegold.html The worldwide indicator of inflation indicates deflation on the horizon. Central Banks will have no choice but to respond with the endless slashing of interest rates to revive growth.... Quote Link to comment Share on other sites More sharing options...
Magpie Posted May 24, 2006 Share Posted May 24, 2006 http://www.kitco.com/charts/livegold.html The worldwide indicator of inflation indicates deflation on the horizon. Central Banks will have no choice but to respond with the endless slashing of interest rates to revive growth.... Nice try, but I don't think you're going to convince them. Gold is "real money" when it goes up, but just one asset amongst many, hardly worth mentioning, when it goes down. Quote Link to comment Share on other sites More sharing options...
Rod, Jane and Freddy Posted May 24, 2006 Share Posted May 24, 2006 No, I for one am convinced. It is obvious that the only direction for interest rates down. The graph says it all. Quote Link to comment Share on other sites More sharing options...
dnd Posted May 24, 2006 Share Posted May 24, 2006 OMG, thanks Jabba - I'm heading down the EA right now to buy any old s*** hole I can buy... Quote Link to comment Share on other sites More sharing options...
CrashIsUnderWay Posted May 24, 2006 Share Posted May 24, 2006 Yes, once again, TimeToPrayForARateCut demonstrates his laser-like cutting edge knowledge of economics. That's it then. Rates will fall tomorrow. Probably by 3 or 4 points, no doubt. Oh hang on - was he trying, in his sheepmolesting 'trust me I have new wellies' way to provide a pithily reconstructed post-iconoclastic witticism??? no. he's just a **** Quote Link to comment Share on other sites More sharing options...
dnd Posted May 24, 2006 Share Posted May 24, 2006 http://www.kitco.com/charts/livegold.html The worldwide indicator of inflation indicates deflation on the horizon. Central Banks will have no choice but to respond with the endless slashing of interest rates to revive growth.... How can you stimulate growth through lending even cheaper money to an country already saturated with £1Trillion of debt - which would be totally unservicable when the rates inevitably rise later? Quote Link to comment Share on other sites More sharing options...
OzzMosiz Posted May 24, 2006 Share Posted May 24, 2006 Sometimes I wish they'd just slash IRs down to 0% and have done with it. Then we'll see what happens! Quote Link to comment Share on other sites More sharing options...
HousePriceLottery Posted May 24, 2006 Share Posted May 24, 2006 Sometimes I wish they'd just slash IRs down to 0% and have done with it. Then we'll see what happens! Didn't the Japanese try that... Quote Link to comment Share on other sites More sharing options...
jonpo Posted May 24, 2006 Share Posted May 24, 2006 You might be right to a certain extent it is true that the gold price ( and infact worldwide asset prices ) shows a good correlation with the future direction of interest rates, and I would also agree that the current declines in gold might be the start of a trend. however recent inflation data does not agree (mostly because it is 1.5 years lagging rates and rates lag gold) the recent gold runnup indicates a need to raise rates much higher still because rates lag gold even though gold is now looking like it could be entering a cyclical bear market, that has only been the case since the recent very hawkish comments by central bankers. I would wait for gold to drop much further before calling deflation. the fed must raise rates currently it needs more credibility it needs to kill the gold bull quickly and brutally. Quote Link to comment Share on other sites More sharing options...
Guest Baffled_by_it_all Posted May 24, 2006 Share Posted May 24, 2006 What a waste of fingers. Quote Link to comment Share on other sites More sharing options...
property flipper Posted May 24, 2006 Share Posted May 24, 2006 interest rates going down what ducking planet are you on. If rates are set to drop why are banks forcing companies to hedge there borrowing cost . Quote Link to comment Share on other sites More sharing options...
CrashCrash Posted May 24, 2006 Share Posted May 24, 2006 You are right TTRTR, We all should start eat Gold Quote Link to comment Share on other sites More sharing options...
Time to raise the rents. Posted May 24, 2006 Author Share Posted May 24, 2006 Geez for a parody thread this one did better than RB's usually do. Quote Link to comment Share on other sites More sharing options...
vinny Posted May 24, 2006 Share Posted May 24, 2006 http://www.kitco.com/charts/livegold.html The worldwide indicator of inflation indicates deflation on the horizon. Central Banks will have no choice but to respond with the endless slashing of interest rates to revive growth.... Firstly, reference Jonpo's post. Secondly consider what MAY happen if we get deflation. Caution: Rates ROSE during the last great (global) deflation to defend currencies for much of the time deflation was in force. Some here, with understandable reason, think that rising rates are indicative of rising inflation. This is only true most of the time - there are exceptions. Of course there are numerous examples of central banks trying to stimulate inflation by various methods including cutting rates. Japan being, I think, the best recent example. I think we all know what has happened to Japanese land / real estate prices. Either way I think you may be starting to agree that property is NOT the place to be? Quote Link to comment Share on other sites More sharing options...
Ngugi Posted May 24, 2006 Share Posted May 24, 2006 http://www.kitco.com/charts/livegold.html The worldwide indicator of inflation indicates deflation on the horizon. Central Banks will have no choice but to respond with the endless slashing of interest rates to revive growth.... It's simply too late to even try correct for a problem which has grown out of control for years now. If the stats are to be believed, millions of people are struggling just to pay back their bank/credit card - what chance has the economy got? Quote Link to comment Share on other sites More sharing options...
Guest Charlie The Tramp Posted May 24, 2006 Share Posted May 24, 2006 interest rates going down what ducking planet are you on. If rates are set to drop why are banks forcing companies to hedge there borrowing cost . ......... and why has NS&I raised their rate to 4.23% AER for fixed term bonds as at 20th May. Quote Link to comment Share on other sites More sharing options...
vinny Posted May 24, 2006 Share Posted May 24, 2006 ......... and why has NS&I raised their rate to 4.23% AER for fixed term bonds as at 20th May. Careful Charlie - Though you may be right (if I have your thinking correct?) - perhaps the Government just needs to attract credit from a diminishing money supply as provided by the general public? Quote Link to comment Share on other sites More sharing options...
Zzzzzzzzzzzzzzzzzzzzzzzzzz Posted May 24, 2006 Share Posted May 24, 2006 The Bank of England should leave interest rates unchanged at 4.5pc this year, before lifting them to 4.6pc in 2007, according to the influential OECD! Even they are pushing for higher rates! They haven't spotted the deflation! Quote Link to comment Share on other sites More sharing options...
vinny Posted May 24, 2006 Share Posted May 24, 2006 They haven't spotted the deflation! IF that is the way we go - then almost no one will spot it until they are too late IMO. Quote Link to comment Share on other sites More sharing options...
Guest Charlie The Tramp Posted May 24, 2006 Share Posted May 24, 2006 Careful Charlie - Though you may be right (if I have your thinking correct?) - perhaps the Government just needs to attract credit from a diminishing money supply as provided by the general public? Yep, just what I thought when I got their letter today. Gordon may be going on a massive borrowing spree. Quote Link to comment Share on other sites More sharing options...
apom Posted May 24, 2006 Share Posted May 24, 2006 Yes, once again, TimeToPrayForARateCut demonstrates his laser-like cutting edge knowledge of economics. That's it then. Rates will fall tomorrow. Probably by 3 or 4 points, no doubt. Oh hang on - was he trying, in his sheepmolesting 'trust me I have new wellies' way to provide a pithily reconstructed post-iconoclastic witticism??? no. he's just a **** Rates are going to drop to -8%... What heppens is that they actually pay you to borrow from them.. I mean, they only ever lent you money to help you out.. okay, so they got you to be about 3 times as much in debt to "agree to buy" an assett from them as you would have had to a few years ago.. but this is not a nefarious scam.... Its an investment.. Best thing to do when you see an assett treble in value is to buy in when it plateaus.. Quote Link to comment Share on other sites More sharing options...
vinny Posted May 24, 2006 Share Posted May 24, 2006 Yep, just what I thought when I got their letter today. Gordon may be going on a massive borrowing spree. If we do see deflation NSI capital bonds and NSI fixed rate saving certs will be amongst the "safest" plays IMO. Depends on if the Government honours the debt. Quote Link to comment Share on other sites More sharing options...
deano Posted May 24, 2006 Share Posted May 24, 2006 (edited) Didn't the Japanese try that... They did but then they could - they had no external deficit at the time and we have. On another occasion they injected a massive 60 billion yen (I think, maybe $) into thier economy in one hit. Guess what happened. Nothing!. Edited May 24, 2006 by deano Quote Link to comment Share on other sites More sharing options...
Magpie Posted May 24, 2006 Share Posted May 24, 2006 Geez for a parody thread this one did better than RB's usually do. Maybe you hit a sore point Quote Link to comment Share on other sites More sharing options...
numbersix Posted May 24, 2006 Share Posted May 24, 2006 Quote 'The worldwide indicator of inflation indicates deflation on the horizon' How can there be deflation when we are told that the money supply is growing by about 10% per year. By definition our true inflation rate (i.e. the decrease in monetary value is probably 10% per year). Interest rates are headed upwards. Thats why the stockmarket is dropping.... Quote Link to comment Share on other sites More sharing options...
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