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Realistbear

Bo E: " Externally Generated Inflation May Well Rise"

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http://www.iii.co.uk/news/?type=afxnews&am...;action=article

LONDON (AFX) - Bank of England rate setter John Gieves today highlighted that
externally generated inflation may well rise over the coming months
having so far been at least partly offset by easing domestic price pressures.
"We have, for example, seen signs of costs rising in China and the far east. Looking further ahead, there must be a risk that this begins to spill over into higher import price inflation," Gieves, who is also deputy governor of the central bank, said in a speech to manufacturers in the North West......../

Are Gordon's Muppets covering themselves in the event they have to execute a quick U-turn next month? Over GB's dead body................. <_<

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http://www.iii.co.uk/news/?type=afxnews&am...;action=article

LONDON (AFX) - Bank of England rate setter John Gieves today highlighted that
externally generated inflation may well rise over the coming months
having so far been at least partly offset by easing domestic price pressures.
"We have, for example, seen signs of costs rising in China and the far east. Looking further ahead, there must be a risk that this begins to spill over into higher import price inflation," Gieves, who is also deputy governor of the central bank, said in a speech to manufacturers in the North West......../

Are Gordon's Muppets covering themselves in the event they have to execute a quick U-turn next month? Over GB's dead body................. <_<

Aint nothing compared to the bank's own internally generated inflation which is sending UK manufacturers to the wall.

When there are no home-grown suppliers the country will be at the beck and call of whatever prices the likes of China wants to set, a similar situation to energy.

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http://business.timesonline.co.uk/article/...2278279,00.html

But striking a more hawkish tone, he went on to note the benefits from globalisation in the shape of cheap goods from countries such as China, which have helped cap inflation in the UK, are diminishing
"Over the past year,
the downward trend in the prices of imported goods has stopped
and import prices have started to rise, even after excluding oil and erratic items," he said.
The remarks follow recent official figures showing that a
surge in imports
, fuelled by Britain’s growing need for foreign oil to offset weaker North Sea production, increased the trade deficit in May to the second highest on record.
The national deficit on trade in goods leapt by more than £1 billion to a May shortfall of £6.75 billion — far worse than the City had expected.

Hope Gieves makes it home safely tonight :ph34r:

Edited by Realistbear

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Guest Alright Jack

This is CLASSIC central bank/government blame shifting.

The government debases the currency. This extra increase in demand drives up the prices of our imports. The government then blames it on foreigners.

We live in a world of double speak and bullsh!t.

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What staggers me is that one of the most inflatory pressures ever seen is the debt burden, people need more money when they owe more..

And the MPC have allowed that to spiral harder then ever seen before in history..

They seem to consider that the ability to buy cheep foreign goods so that more money is left to take on huge debts to buy property which is has trebled in price in some areas.. Has been successfully managing the economy for the good of the country..

It is insanity.. Just because lies have fooled the great un-washed.. Does not stop it from being lies..

Damn it..

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Guest wrongmove

What staggers me is that one of the most inflatory pressures ever seen is the debt burden, people need more money when they owe more..

And the MPC have allowed that to spiral harder then ever seen before in history..

They seem to consider that the ability to buy cheep foreign goods so that more money is left to take on huge debts to buy property which is has trebled in price in some areas.. Has been successfully managing the economy for the good of the country..

It is insanity.. Just because lies have fooled the great un-washed.. Does not stop it from being lies..

Damn it..

While I basically agree with what you are saying apom, the MPC has to worry about more than consumer debt. If the BoE hiked rates when businesses are already struggling, then many would be put out of work. It's not really the MPC's fault that consumers have over-borrowed. Japan and Europe have much lower IRs, yet they don't (to the same extent at least) have the same consumer debt problems. The BoE can't send British business to the wall, just because Joe Public wants to mew for holidays.

The BoE has to try to protect the economy - that is business and infrastructure. The currency and a few overstretched punters are important, but not as important as the economy (the means of production) itself, IMHO.

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It's not really the MPC's fault that consumers have over-borrowed.

Of course it is... what do they think many people will do when they cut interest rates to artificially low levels?

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Of course it is... what do they think many people will do when they cut interest rates to artificially low levels?

I agree. Gordon has maintained accomodative IR throughout the HPI crisis with the consequential debt mountain, insolvency and crisis in industry where jobs have been lost because our housing is too expensive for employees.

Gordon shouold have followed Al and now Ben and had the guts to kill inflationary trends with IR hikes. But what did he do? he actually cut IR last year and made matters worse for the nation.

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Guest Charlie The Tramp

Watching News 24 they were interviewing a Jordanian Prince ( Did not get his name ) who said the Lebanon and Israeli conflict could push oil to $200 a barrel.

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Watching News 24 they were interviewing a Jordanian Prince ( Did not get his name ) who said the Lebanon and Israeli conflict could push oil to $200 a barrel.

That might speed up the recession by six months!

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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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