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Bank Of England Believe Treasury Fiddles The Cpi


nimmmm

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HOLA441
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HOLA442
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HOLA443
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HOLA444
but in
recent years
the Bank's agents have produced their own alternative measure. It revealed that high street goods inflation had jumped even more dramatically, by more than two percentage points since last summer, while retail services prices were rising at the fastest rate since records began six years ago
.

Bit late isn't it? If Merv want to protect his reputation, which must be falling fast, he needs to act on the alternative measures.

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HOLA445
but in
recent years
the Bank's agents have produced their own alternative measure. It revealed that high street goods inflation had jumped even more dramatically, by more than two percentage points since last summer, while retail services prices were rising at the fastest rate since records began six years ago
.

Bit late isn't it? If Merv want to protect his reputation, which must be falling fast, he needs to act on the alternative measures.

Do you think he will refer to the BoE agents in his open letter?

"I apploigse for missing the CPI target, but frankly the CPI basket was such a lot of b*ll*cks that at some stage it was inevitable!"

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HOLA446
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HOLA447

Its an issue theyve avoided, cause theyve got big property portfolios they dont want to loose out on, and the one that suggested that rates should go lower must also have a big mortgage or two. Self interest for those in power will always intentionaly or unintentionaly cloud better judgment. Lets face it, who would want to kill whats made em rich in recent years.

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HOLA448
8
HOLA449

CPI doesn't need fiddling, it's intrinsically flawed.

It assumes that house prices and rents are somehow related. Manifestly they are not, or worse they are inversely related because BTLers accept a lower rent when they are making capital gains. Ironically once the housing market turns down rents will need to rise to compensate landlords and this will make CPI leap ahead (CPI includes rent but not price; the classic view is that rent is always a percentage of cost.)

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HOLA4410
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HOLA4411

Begin Rant:

All of them are in it for themselves. BTL's, Property portfolios, Huge pensions. Good lord!!! It may be the 21st century but at the end of the day it's still them and us.

I for one look to Thailand for inspiration and would wish someone would oust this government and all the parasitic organisims that come with it and burn them all in a field. :ph34r:

:End of rant.

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HOLA4412

Also see this

Is it time to focus on other than the CPI

With the cost and affordability of basic housing going through the roof. More and more economic pundits are starting to question if the governments adoption or skew of components in the CPI is realistically reflecting what is happening on the ground.

In countries as far apart as the UK and Australia the CPI measurement is affected more by the increase in the price of Bananas than the costs of local income taxes and housing.

http://www.invbiznews.com/wordpress/is-it-...r-than-the-cpi/

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HOLA4413

No, it's not quite time to put housing into IR calculations.

Time to do that will be when house prices are falling, that way CPI will be dragged down with the houses and so hyperinflation in other sectors of the economy will be masked out and interest rates can stay low for even longer.

Gordon "Heads I win, tails you lose" Brown's bag o'tricks is nowhere near empty. :D

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HOLA4414
Guest mattsta1964

Finger Pointing has started, everyone will try and lay the blame at everyone elses door. Does anyone else feel G.Brown won't have it all that easy getting his hands on number 10.

Gordon Brown will be infamous for the damage he has caused. He may well make it to No10 next year but his tenure will be one of ridicule and shame.

I'll place any bet, the Labour Party's credibility will be destroyed FOREVER by the events that'll unfold over the next 12-18 months

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HOLA4415

Gordon Brown will be infamous for the damage he has caused. He may well make it to No10 next year but his tenure will be one of ridicule and shame.

I'll place any bet, the Labour Party's credibility will be destroyed FOREVER by the events that'll unfold over the next 12-18 months

I do wonder how he's going to keep the show on the road. What's the next trick? We've have growth through retail boom, growth through public sector expansion, growth by raiding the pensions, growth through MEW, growth through public borrowing, growth through flogging off the gold reserves, growth through redefining the length of the economic cycle so he could "borrow to invest", and lastly growth through bringing in Polish workers (this last btw is not real growth, because per-capita it's actually recession, but the totals look good...)

To be fair he's failed a couple of times. The SIPPS thing didn't fly, REITs were not so hot. And a few budgets ago he appointed someone to look into getting the whole country onto fixed rate mortgages--he could see the writing on the wall even if no-one else could. That never happened though. The country is still variable-rate and being pushed to the edge of the cliff with each tuirn of the IR screw.

Where next for Gordon? It could just be a midnight flit to number 10 and let his successor take the blame. Will we see a blameless Gordon telling the country: everything was fine while I was chancellor? Or is there still wriggle room? Is there perhaps something left to sell? He's sold MOD land, he's sold hospitals, he's sold schools, he's sold all the Inland Revenue's buildings, he's had a hefty chunk of the HPI via stamp duty. Where to next?

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HOLA4416
Guest mattsta1964

I do wonder how he's going to keep the show on the road. What's the next trick? We've have growth through retail boom, growth through public sector expansion, growth by raiding the pensions, growth through MEW, growth through public borrowing, growth through flogging off the gold reserves, growth through redefining the length of the economic cycle so he could "borrow to invest", and lastly growth through bringing in Polish workers (this last btw is not real growth, because per-capita it's actually recession, but the totals look good...)

To be fair he's failed a couple of times. The SIPPS thing didn't fly, REITs were not so hot. And a few budgets ago he appointed someone to look into getting the whole country onto fixed rate mortgages--he could see the writing on the wall even if no-one else could. That never happened though. The country is still variable-rate and being pushed to the edge of the cliff with each tuirn of the IR screw.

Where next for Gordon? It could just be a midnight flit to number 10 and let his successor take the blame. Will we see a blameless Gordon telling the country: everything was fine while I was chancellor? Or is there still wriggle room? Is there perhaps something left to sell? He's sold MOD land, he's sold hospitals, he's sold schools, he's sold all the Inland Revenue's buildings, he's had a hefty chunk of the HPI via stamp duty. Where to next?

He also sold 60% of the UK's gold reserves for $320oz! The UK's final 'Get out of Jail free' card given away by Gordon Brown.

He'll never live this one down. His reputation is assured and it ain't good!

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HOLA4417
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HOLA4418

Gordon Brown never planned on being chancellor this long.

All his sums add up to him planning on being out of the treasury by 2005. He certainly does not want to be in that seat while events in the US unfold as they are doing.

I think Blair is standing in his way just long enough for the 'R' word to be officially applied to the US economy.

You cannot take all the credit, without taking all the blame.

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HOLA4419
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HOLA4420

Gordon Brown never planned on being chancellor this long.

All his sums add up to him planning on being out of the treasury by 2005. He certainly does not want to be in that seat while events in the US unfold as they are doing.

I think Blair is standing in his way just long enough for the 'R' word to be officially applied to the US economy.

You cannot take all the credit, without taking all the blame.

GB needs the support of 70 MPs to trigger a leadership vote and turf TB out. I'm sure he'd get the nominations if he went for it - what MP is going to put themselves in the doghouse for all time by refusing to sign? GB seems to lack the backbone to go for TB's throat.

So now TB is going to make him sweat out one more budget next year - hopefully the one where he has to come clean about how crap he's been since 1997.

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HOLA4421

Finger Pointing has started, everyone will try and lay the blame at everyone elses door. Does anyone else feel G.Brown won't have it all that easy getting his hands on number 10.

Do you think the electorate will begin to see what Gordon has really been up to?

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