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apologies if this has been said but, i've seen plenty of posts about where inflation will be in 2 years time and what IR should be to keep to the 2% target etc. but unless i'm mistaken, 2 years ago the target for 2 years time (i.e. now) was also 2% - fiddled inflation is 2.4% and hence above 2 year target - the BoE have therefore failed in their duty - all who voted to keep IRs artificially low should be sacked

Edited by the end is nigh

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They have rammed another £100,000,000,000 down the throats of the public, some of them willingly, some of them under duress, desperate not to be locked out and left behind, like they keep on being told.

For that, they should all be sacked.

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I guess it's the plan.

Maybe they should all be sacked but that is the money infrastructure in this world and a lot of people.

They create the issues and definitions to then act upon.

Problem + Reaction = Solution.

Please don't tell me they didn't know. They created it after all.

Main point is IR's go up.

Problem + Reaction = Solution.

Edited by music man

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apologies if this has been said but, i've seen plenty of posts about where inflation will be in 2 years time and what IR should be to keep to the 2% target etc. but unless i'm mistaken, 2 years ago the target for 2 years time (i.e. now) was also 2% - fiddled inflation is 2.4% and hence above 2 year target - the BoE have therefore failed in their duty - all who voted to keep IRs artificially low should be sacked

You said it !! America started increase their rates 20 months ago and their housing has just started to tumble!! We have been slow to act thereby prolonging Gordons miracle economy (what alaugh ) how can you have a miracle economy built on phone shops, fast food outlets , coffee shops and pound shops ? and therefore our Tumble will be huge and prolonged . Batten down the hatches and after that the big sale .

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What annoys me is how Merv said he wouldn't discuss if the rate reduction last August was wrong or not. He says they don't look back at previous meetings, they only look forward (it's the job of the media to do that).

It's a bit of a joke, as its now so apparant the rate reduction last Aug was the wrong thing to do, but they won't go back and understand why they were wrong. I'll give them a clue, something to do with encouraging excessive debt?

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The idea that central banks are really there to stop inflation is a joke.

Central banks are the root cause of all inflation in one way or another.

Who increases the money supply? The central bank

Who keeps interest rates ridiculously low? The central bank

Who encourages debt? The central bank

The people working at the central bank aren't really there to serve

some great public good as they make out, they are there to keep up

appearances for an inherently corrupt system. If you ever listen to

an interview with one of these people it is plain to see, they never

tell anything as it is, everything is spun to make the bank/government

look good.

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What annoys me is how Merv said he wouldn't discuss if the rate reduction last August was wrong or not. He says they don't look back at previous meetings, they only look forward (it's the job of the media to do that).

It's a bit of a joke, as its now so apparant the rate reduction last Aug was the wrong thing to do, but they won't go back and understand why they were wrong. I'll give them a clue, something to do with encouraging excessive debt?

Merv obviously missed history in A levels? We should learn from the past because the future is yet to come (Tautologous Tim, c. 1968).

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Isn't the BoE required to keep inflation between 1% and 3% (with an average of 2% obviously being the aim)?

If so the BoE has yet to fail and although Merv has highlighted the fact that inflation may rise above the upper limit of 3% (and so the BoE will then have technically failed) so far the BoE has presided over an extremely benign period in inflation terms.

For those intending to reply on the 'inflation is really 7%' line of argument - you can't blame the BoE for that. It doesn't make the rules, it is just required to follow them.

I think the BoE gets an undeserved bashing on this site merely because it doesn't help us achieve our VI aim of HPC

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Isn't the BoE required to keep inflation between 1% and 3% (with an average of 2% obviously being the aim)?

If so the BoE has yet to fail and although Merv has highlighted the fact that inflation may rise above the upper limit of 3% (and so the BoE will then have technically failed) so far the BoE has presided over an extremely benign period in inflation terms.

For those intending to reply on the 'inflation is really 7%' line of argument - you can't blame the BoE for that. It doesn't make the rules, it is just required to follow them.

I think the BoE gets an undeserved bashing on this site merely because it doesn't help us achieve our VI aim of HPC

If you are part of the lie you are damn well responsible. If you are independent and you say/do nothing then you are damn well responsible. If you are oblivious to the reality of a situation then you are incompetent and shouldn't be doing the job you are doing.

The BOE are 100% complicit in this charade.

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If you are part of the lie you are damn well responsible. If you are independent and you say/do nothing then you are damn well responsible. If you are oblivious to the reality of a situation then you are incompetent and shouldn't be doing the job you are doing.

The BOE are 100% complicit in this charade.

I really think that's unfair - anyone reading Merv's public pronouncements for the last couple of years would be under no illusion that he is very much a bear. He has highlighted the problems of high house prices (which he has all but said are unsustainable) and the problems of the levels of personal debt. The problem with making decisions by committee though is you have to persuade a majority of the committee to your point of view. I think Merv has done a top job under difficult circumstances and, I repeat, the BoE has achieved the target set down for it of keeping inflation between 1% and 3% ever since it took over responsibility for IR. That's a pretty good record IMO and just because Gordon messes around with the definitions shouldn't be laid at the Bank's door.

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I really think that's unfair - anyone reading Merv's public pronouncements for the last couple of years would be under no illusion that he is very much a bear. He has highlighted the problems of high house prices (which he has all but said are unsustainable) and the problems of the levels of personal debt. The problem with making decisions by committee though is you have to persuade a majority of the committee to your point of view. I think Merv has done a top job under difficult circumstances and, I repeat, the BoE has achieved the target set down for it of keeping inflation between 1% and 3% ever since it took over responsibility for IR. That's a pretty good record IMO and just because Gordon messes around with the definitions shouldn't be laid at the Bank's door.

I think you are missing the big picture, there is a highly important point here. If interest rate and economic policy is under the control of the party in power there is absolute accountability for their actions through the ballot box. If it goes pear-shaped the party in power will be ousted and their policies will not be given the liht of day for a long time and rightly so. There is no shade of grey with bank independence - they are either independent or they are not, they either act as a solely impartial brake against fiddle figures and poltiically driven economic policies or they are.

I suggest that overall they are anything but totally independent and that they have been totally remiss in even pursuing their remit - which is not just inflation targeting but financial stability.

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I think you are missing the big picture, there is a highly important point here. If interest rate and economic policy is under the control of the party in power there is absolute accountability for their actions through the ballot box. If it goes pear-shaped the party in power will be ousted and their policies will not be given the liht of day for a long time and rightly so. There is no shade of grey with bank independence - they are either independent or they are not, they either act as a solely impartial brake against fiddle figures and poltiically driven economic policies or they are.

I suggest that overall they are anything but totally independent and that they have been totally remiss in even pursuing their remit - which is not just inflation targeting but financial stability.

Have you read the Bank's latest financial stability report? I think the Bank is doing a good job at raising awareness on the possible threats to financial stability and taking steps to change bad practices

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I think the Bank is doing a good job at raising awareness on the possible threats to financial stability and taking steps to change bad practices

Just five years too late.

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Have you read the Bank's latest financial stability report? I think the Bank is doing a good job at raising awareness on the possible threats to financial stability and taking steps to change bad practices

You are kidding me?

The bank is warning about speculation - where mr market is borrowing sack loads of money and throwing it at assets all over the place AND WHO PROVIDES THE CHEAP M4 MONEY?

It is double-talk of the highest order, it is just words, watch the hands, not the lips. The problem was created yesterday, by themsleves and now they are compaining about it.

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You are kidding me?

The bank is warning about speculation - where mr market is borrowing sack loads of money and throwing it at assets all over the place AND WHO PROVIDES THE CHEAP M4 MONEY?

It is double-talk of the highest order, it is just words, watch the hands, not the lips. The problem was created yesterday, by themsleves and now they are compaining about it.

If you think the Bank's remit is wrong then fair enough, but you can't accuse the Bank of doing a bad job for keeping inflation between the set parameters and IMO doing a good job in terms of financial stability

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America started to increase their rates 20 months ago and their housing has just started to tumble!! We have been slow to act thereby prolonging Gordons miracle economy (what alaugh ) how can you have a miracle economy built on phone shops, fast food outlets , coffee shops and pound shops ? and therefore our Tumble will be huge and prolonged . Batten down the hatches and after that the big sale .

Our idea of reducing our interest rate when America was raising theirs was stupidity of the highest order.

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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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