Zzzzzzzzzzzzzzzzzzzzzzzzzz Posted July 19, 2006 Share Posted July 19, 2006 (edited) http://money.guardian.co.uk/businessnews/s...1824326,00.html The Guardian turds and the VIs strike again.................. Edited July 19, 2006 by gruffydd Quote Link to comment Share on other sites More sharing options...
dnd Posted July 19, 2006 Share Posted July 19, 2006 This is totally unsustainable given the impending global IR hikes feeding though from rising energy prices into inflation How high does REAL inflation have to rise before they fall into line and end this political game? Quote Link to comment Share on other sites More sharing options...
Marina Posted July 19, 2006 Share Posted July 19, 2006 This is totally unsustainable given the impending global IR hikes feeding though from rising energy prices into inflation How high does REAL inflation have to rise before they fall into line and end this political game? No it isn't totally unsustainable. That is just your wishful thinking. Balls is already talking balls and saying rates will come down if consumer spending slows. Face it, for some odd reason, the world raising rates is not affecting sterling and there is no real pressure to raise rates. They're already spinning that they are ahead of the game - having raised rates in 2004. Fact is - if you're priced out now, you're screwed. Time to put your fists up. Or are you just going to keep taking a beating? Quote Link to comment Share on other sites More sharing options...
MarkG Posted July 19, 2006 Share Posted July 19, 2006 Face it, for some odd reason, the world raising rates is not affecting sterling The only thing supporting sterling is the expecation of interest rate rises this year. If rates go down, it will drop through the floor. Time to put your fists up. Or are you just going to keep taking a beating? So did you start your protest yet? Quote Link to comment Share on other sites More sharing options...
Englebert Posted July 19, 2006 Share Posted July 19, 2006 No it isn't totally unsustainable. That is just your wishful thinking. Balls is already talking balls and saying rates will come down if consumer spending slows. Face it, for some odd reason, the world raising rates is not affecting sterling and there is no real pressure to raise rates. They're already spinning that they are ahead of the game - having raised rates in 2004. Fact is - if you're priced out now, you're screwed. Time to put your fists up. Or are you just going to keep taking a beating? "Fact is - if you're priced out now, you're screwed." Well there certainly is a lot of people out there that are screwed under your terms Marina!! I say Rejoice......all those screwed people out there ...you just escaped from one helluva noose around you neck! As the great Huey Lewis didn't say: "it's great to be screwed!" Quote Link to comment Share on other sites More sharing options...
MarkG Posted July 19, 2006 Share Posted July 19, 2006 The simple reality is that if China starts exporting inflation rather than deflation, then this country is going straight into stagflation: rates will have to go up a long way to try to keep inflation under control by cutting demand and strengthening the pound, and that will utterly trash an economy based on consumer borrowing. Quote Link to comment Share on other sites More sharing options...
dnd Posted July 19, 2006 Share Posted July 19, 2006 (edited) Face it, for some odd reason, the world raising rates is not affecting sterling and there is no real pressure to raise rates. They're already spinning that they are ahead of the game - having raised rates in 2004. What are you talking about? - it hasn't happened yet Inflation/IR are still rising globally.... Edited July 19, 2006 by dnd Quote Link to comment Share on other sites More sharing options...
Englebert Posted July 19, 2006 Share Posted July 19, 2006 http://money.guardian.co.uk/businessnews/s...1824326,00.html The Guardian turds and the VIs strike again.................. "A rise in interest rates would push homebuyers' affordability to the worst level in 15 years, figures showed today. A widely predicted hike in rates from the current 4.5% to 4.75% would push average monthly mortgage payments up to £854 from £795 at the end of the year." I think what they are reporting is quite true.......they are stating the obvious really... a lot of morons out there who were desperate to get "on the property ladder"......are in for very interesting times.......this is exactly why I would like rates to rise....from a Darwinian viewpoint, it would certainly seperate the wheat from the chaff. Quote Link to comment Share on other sites More sharing options...
Guest Alright Jack Posted July 20, 2006 Share Posted July 20, 2006 Labour=Guardian=soft=rates down=spending up=bankruptcy=downtrodden feel happy=rich fleece Conservative=Daily Mail=hard=rates up=spending down=new economic dawn=downtrodden, downtrodden=rich fleece Vote them in, in turn. It might work better if we could swap them more than once a decade. You're on to something here. Governments do nothing but break stuff. governments do not really start to gain any traction until into their second term. So, we should change the government every general election. That way, nothing will get done and the country will prosper. Quote Link to comment Share on other sites More sharing options...
Marina Posted July 20, 2006 Share Posted July 20, 2006 The only thing supporting sterling is the expecation of interest rate rises this year. If rates go down, it will drop through the floor. So did you start your protest yet? What expectation of interest rate rises this year? Yours? A few people on here? Ed Balls said the other day that the rises in rates in 2004 - when other countries were not rising theirs - means that the UK is ahead of the game on the fighting inflation front. No-one knew oil was going to go up - it could yet go down - and a lot of the increases caused by the big increase of oil (what a year ago) are now already in current prices. Fact is - we are still in a market with largely deflationary pressures. Noticed any of the vast army of unskilled and semi-skilled workers getting pay rises lately (like any time over the last 15 years)? You going to wait for China to export inflation? You might wait 20 years! For every one economist expecting rate rises - and those that do are talking about ONE 0.25% rise - there are two that expect rate decreases. On the protest front - look all I am trying to do is get you lot to realise that unless you take some positive action you are screwed. Now and forever. A protest movement led by someone the same age as Tony Blair would look a bit daft. Plus, I'm not screwed. You (and my kids when they are older) are. The simple reality is that if China starts exporting inflation rather than deflation, then this country is going straight into stagflation: rates will have to go up a long way to try to keep inflation under control by cutting demand and strengthening the pound, and that will utterly trash an economy based on consumer borrowing. You might wait 20 years for that to happen. They use cheap labour now. They'll use cheap machines one day. "Fact is - if you're priced out now, you're screwed." Well there certainly is a lot of people out there that are screwed under your terms Marina!! I say Rejoice......all those screwed people out there ...you just escaped from one helluva noose around you neck! As the great Huey Lewis didn't say: "it's great to be screwed!" They are not my terms - what do you mean by that? Rejoice! Yes, why not! Good idea to avoid the hangman's noose of debt - you won't find me arguing with that. You won't find me arguing that renting properties all your life under Shorthold Tenancy Agreements when you can be kicked out every 6 months is a cause for rejoicing though. You're priced out and you need to wake up and do something about it. Quote Link to comment Share on other sites More sharing options...
Realistbear Posted July 20, 2006 Share Posted July 20, 2006 IMO, Gordon cannot and will not raise IR. He is hoping the American recession will slow our economy without any hikes and lead to a plateau (stagflation) upon which to work out what next now that the HPI-MEW gravy train has stalled out due to the inability of people to borrow more. I do think IR will rise as a result of the Jap moves but these will filter into the system slowly and indirectly as the BoE stands pat. Mortgage rates will still rise and borrowing will be more expensive simply due to the removal of liquidity by Japan. All bets are off if inflation still rages in 3 months time. For now, 2.5% is within Gordon's tolerance level because the alternative, hiking IR, is too terrible for him to contemplate. He has the hope that the ME will calm down and that oil will return to below $70. Sterling is the most valuable currency in the world right now having risen against the Yen, Euro, $ and Swiss Franc. If sterling collapses and an IR hike is forced It will be the end of NuLabour. I don't see that happening for at least 6 more months. IN the meantime the steady erosion of the economy through unemployment, rising twin deficits, ane increasing insolvency rates are busy doing their work. The rising pound will also continue to erode our balance of payments and I have no doubt that Boeing's huge success at Farnborough over Airbus has something to do with the value factor currency-wise. Its not long now. Quote Link to comment Share on other sites More sharing options...
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