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Realistbear

Inflation Data Sends Stocks Crashing And Pound Up

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The cat is among the pidgeons or the wolf is among the sheeple:

FTSE 100 (FSI:^FTSE) Edit

Index Value: 5,664.30

Trade Time: 9:50AM

Change: Down 36.70 (0.64%)

Prev Close: 5,701.00

Open: 5,701.00

Day's Range: 5,659.50 - 5,707.20

52wk Range: 5,130.90 - 6,137.10

Pound up.50 points against the US$ in seconds.

Nikkei in meltdown:

^N225 Nikkei 225 (Japan) 14,437.24 7:00 Down -408.00 (-2.75%)

I am still skeptical that Gordon will raise rates as his entire Miracle Economy has been built on accomodative levels of borrwoing. HPI and MEW will stop dead in its tracks if he hikes and with No. 10 in sight he is not going to rock the free money gravy train--not yet at least.

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The cat is among the pidgeons or the wolf is among the sheeple:

FTSE 100 (FSI:^FTSE) Edit

Index Value: 5,664.30

Trade Time: 9:50AM

Change: Down 36.70 (0.64%)

Prev Close: 5,701.00

Open: 5,701.00

Day's Range: 5,659.50 - 5,707.20

52wk Range: 5,130.90 - 6,137.10

Pound up.50 points against the US$ in seconds.

Nikkei in meltdown:

^N225 Nikkei 225 (Japan) 14,437.24 7:00 Down -408.00 (-2.75%)

I am still skeptical that Gordon will raise rates as his entire Miracle Economy has been built on accomodative levels of borrwoing. HPI and MEW will stop dead in its tracks if he hikes and with No. 10 in sight he is not going to rock the free money gravy train--not yet at least.

I agree

I want to see Brown crash-and-burn spectacularly with whole percentage IR rises [not a 0.25% here, a pause, and then another tweak]

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It doesn't matter what HAPPENS - there will be a reason for it.

High inflation caused high interest rates causing recession .... 'The economy was performing soundly until the unexpected surge in global oil prices which, of course, we have no control over ...'

You will never see any blame attaching to Gordon Brown.

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It doesn't matter what HAPPENS - there will be a reason for it.

High inflation caused high interest rates causing recession .... 'The economy was performing soundly until the unexpected surge in global oil prices which, of course, we have no control over ...'

You will never see any blame attaching to Gordon Brown.

Thats because our Dear Leader In Waiting has "locked in stability"

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I have said before every time RB says GB will raise rates I will reply he does not control the MPC.

Your blatantly political (antil Labour) shenanghans will not help your/our cause RB.

Give it up. Accept he does not control MPC decisions.

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Pound back down and stocks back up. Market may be pricing in a non-event IR-wise. They know Gordon cannot hike or the Miracle Economy is dead. What a strange place to be for Gordon. Its sitting on a razor's edge with nowhere to move without disaster following.

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I have said before every time RB says GB will raise rates I will reply he does not control the MPC.

Your blatantly political (antil Labour) shenanghans will not help your/our cause RB.

Give it up. Accept he does not control MPC decisions.

Zzzzzz. This is getting boring

Group: Members

Posts: 1,168

Joined: 29-November 04

From: Live E Herts; Work City; Job Hairdresser

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I have said before every time RB says GB will raise rates I will reply he does not control the MPC.

Your blatantly political (antil Labour) shenanghans will not help your/our cause RB.

Give it up. Accept he does not control MPC decisions.

YOu are right--officially speaking. However, as you examine the realities behind the surface you find that:

1. The ONS determine the stats the BoE MUST use to govern IR. The ONS is an instrument of government controlled by Gordon who is the sole arbiter of the rules that goven how the BoE act.

2. Gordon directly handpicks the external members of the MPC and just chose 2 Doves that align with his no IR hike policy.

3. The other members, including the governor are chosen by central government--the Treasury which in turn is controlled by GB and his cronies.

4. So real is the fact of the non-independence of the Boe that Parliament has set up an enquiry because they don't believe it either.

5. Political patronage is powerful as we have seen in the recent pererages for loans scandal.

Bottom line--the BoE is a political arm of the government and more specifically GB. It is a flight of fancy to think that we have an independent bank. But you are right to the extent that the bank is supposed to be independent.

Edited by Realistbear

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I have said before every time RB says GB will raise rates I will reply he does not control the MPC.

Your blatantly political (antil Labour) shenanghans will not help your/our cause RB.

Give it up. Accept he does not control MPC decisions.

No he influences them with fraudualant figures. He's like the Pied Piper!

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I have said before every time RB says GB will raise rates I will reply he does not control the MPC.

Your blatantly political (antil Labour) shenanghans will not help your/our cause RB.

Give it up. Accept he does not control MPC decisions.

Why don't you put up a poll? Do you think Gordon Brown is indirectly controlling the decisions made by the MPC of the BOE?

If you lose (and you will) please undertake to shut up whenever RB correctly refers to the fact that GB does indirectly control the MPC of the BOE.

Go on, create a poll.

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I have said before every time RB says GB will raise rates I will reply he does not control the MPC.

Your blatantly political (antil Labour) shenanghans will not help your/our cause RB.

Give it up. Accept he does not control MPC decisions. Boll@cks

Who are you kidding :lol: , your superior (gaffer, boss, hairy arsed manager) will always influence your decision making policies at your place of work.

More Nu Labour spin from the Fat Dictator :ph34r:

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Why don't you put up a poll? Do you think Gordon Brown is indirectly controlling the decisions made by the MPC of the BOE?

If you lose (and you will) please undertake to shut up whenever RB correctly refers to the fact that GB does indirectly control the MPC of the BOE.

Go on, create a poll.

Marina--I think its common knowledge now:

http://www.telegraph.co.uk/opinion/main.jh...3/ixuknews.html

Chancellor is pulling the Bank's strings
By George Trefgarne
(Filed: 23/06/2006)
....../
Mr Brown likes to trumpet "the independence" of the Bank, but in reality he still tries to control it through his power of patronage. Four of the nine members of the MPC are appointed directly by him. And another three - the Governor and the two deputy governors - are technically appointed by the Queen, on the advice of the Prime Minister (which, one assumes, means Mr Brown). And now Mr Walton is gone, there are not just one, but two, vacancies. For some reason, Mr Brown has dithered when it comes to finding the replacement for Richard Lambert, the Labour-supporting ex-editor of the Financial Times, who left the MPC three months ago.
...../
One cannot help feeling that characters such as Sir John and Mr Blanchflower are flattered by Mr Brown's patronage and dance to his tune. That is certainly the view of some MPs on the Treasury select committee, who have recently decided to hold an inquiry into how he appoints MPC members.
....../
The situation is particularly acute in Britain. Three years ago, the Chancellor changed the index which the Bank must use to measure inflation. The new index, known as the Consumer Price Index, puts inflation at 2.2 per cent.
But the CPI is a fudge. It excludes house prices and concentrates on the tumbling cost of cheap goods imported from China. It misses or under-records utility bills, council tax and many services. Usually, the public has a fairly clear idea of what inflation actually is. According to a separate index published by the Bank, the public believes inflation is 2.7 per cent - well ahead of the CPI. That might not sound like much, but inflation at that rate is enough to reduce the spending power of a pound by about one third in 10 years.
The solution to this looming crisis is pretty simple. If Gordon Brown wants to preserve what is left of his reputation, he should surrender his power of appointing members to the monetary policy committee to the Governor. That would not only repair confidence, it would also be a worthy memorial to David Walton.

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Zzzzzz. This is getting boring

Group: Members

Posts: 1,168

Joined: 29-November 04

From: Live E Herts; Work City; Job Hairdresser

Leave off, our Financial Planner has been on TV supporting the bears, don't you know!!!

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YOu are right--officially speaking.

Bottom line--the BoE is a political arm of the government and more specifically GB. But you are right to the extent that the bank is supposed to be independent.

Ist point of course I agree with.

Second point - b0llocks.

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Second point - b0llocks.

You're free to pretend that the BoE is 'independent' if you wish, but you'll only make yourself look silly. Most sane people understand that others usually do what their boss wants them to do, for so long as they want to keep their job.

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  • 301 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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