Friday, October 20, 2006
The MPC may be more independent and cleverer then previously thought
Why the Bank of England is turning more hawkish
A summary of the UK's economic situation which suggests an Interest Rate hike in Nov 06 might not be the peak of the cycle. I would be grateful if "NpHPC" read this one and comment.
Posted by talking rot @ 10:37 AM (540 views)
12 thoughts on “The MPC may be more independent and cleverer then previously thought”
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kpjcomp says:
This is on the BBC->
http://news.bbc.co.uk/1/hi/uk/6068568.stm
Price of running a new car has only gone up 22% in 1 year, what’s all this rubbish about high inflation and the CPI being a load of rubbish.
sovietuk says:
Article says
” But with inflation staying stubbornly above target, the housing bubble still inflating and money supply growth dangerously high, more unemployment is likely to be the price we pay to get the economy back into shape. ”
In other words sod the ordinary bloke in the street, make his housing more expensive and make his job more insecure.
Tom says:
quote: “a slowing economy accompanied by persistent price inflation is the last thing we need.”
Sounds like stagflation.
bidin'matime says:
“We suspect that the two props of Brown’s economy – the public sector spending binge and the low rate-fuelled credit bubble – are set to collapse at the same time. Unfortunately it’s the taxpayer who will pick up the bill for this; watching Brown’s name become mud will be scant consolation.”
Nuff said
sovietuk says:
Article also says
“There’s now talk that Brown might once again extend his definition of the economic cycle so he can meet his self-imposed ‘golden rule’ of balancing the budget over the cycle”.
Or short for “it’s not ever going to get balanced because by the time we’ve been kicked out of office somebody else we’ll have to clear up all the sh*t we’ve left behind”
denzil says:
>>”There’s now talk that Brown might once again extend his definition of the economic cycle so he can meet his self-imposed ‘golden rule’ of balancing the budget over the cycle”.
Love it! I have a self imposed budget of £100 per month on cider. I have spent £300 this month but am I bothered? No of course not because I have extended the cider drinking cycle to one year. I shall enter my local this evening with a clear conscience. Seriously though, how can anyone who is so blatantly fiddling economics be considered for PM defies belief.
Chillilizard says:
technical bit:
The quantity theory of money:
money supply x velocity = prices x number of transactions
So if money supply has gone up by 14.5%, and we are not buying more stuff, then surely prices will go up by 14.5%.
I wonder how they reconcile this report with the CPI? I also wonder if Brown every studied economics?
inbreda says:
How anyone can be so obviously deceptive and yet work in an office with the trust of the general public is beyond me.
How he can claim a wage of any more than £12.50 per year and still sleep at night I’ll never know.
bidin'matime says:
Chillilizard
Absolutely – good to see some technical input – keep on posting.
Nohpc says:
Nothing in that article is any suprise to me. I said I thought interest rates would peak at 5.5% Moneyweek seem to think 5.25%. I think the Olympics will fuel the economy to a certain extent as well as providing a job. Also they usually mention the fact that more people are in work as well as out of work and it is the people in work that are important as they are the house buyers, high street shoppers ect.
PS money week are a bunch of jokers. Have you seen the adverts they send out to you when you sign up to their newsletter?
Mjchum says:
Fact is we’re all getting poorer, due to taxation, regulation, persecution of industrious people and gloablisation. I here so many ‘ordinary’ people talking flippantly about huge sums of money. Only problem is those sums come after a minus sign.
Rayman740 says:
Still gloomy these ‘banging on the same sour drum’ moneyweek chaps. Buy now, there is no collapse. (I say that having been told of a bidding war to buy a 400k house in Cornwall; property sold over asking price!