Friday, October 24, 2008

In Defence of Currency (2)

Denmark lifts rates to defend krone

Denmark’s central bank on Friday raised its key interest rate for the second time this month to defend the krone, demonstrating the cost to the country of staying outside the eurozone. The 50 basis point rise to 5.5 per cent stands in marked contrast to recent rate cuts in neighbouring Norway and Sweden, and threatens to push Danish housing prices down further and depress an already stagnating economy.

Posted by lvmreader @ 08:47 PM (823 views)
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3 thoughts on “In Defence of Currency (2)

  • planning4acrash says:

    This is not a cost, it is a benefit to be flexible to adjust. Spain despirately needs an interest rate rise, but gave its liberty to achieve one to the ECB. What we will see, if this continues, is that national currencies strengthen against regional behemoths, that join a race downwards, following their financial masters. The result? Global currency order becomes impossible! The Danes, Polish will not accept it! Iceland may not be able to resist it, but they are irrelevant to the bigger scheme. The big deal made of Iceland is that the golablists succeeded there, but this is not their main test.

    HEADLINE: Mises.org is the biggest economics website in the WORLD, Alex Jones has the world’s largest radio show, Ron Paul got more money from serving soldiers than all the other candidates combined. People everywhere, waking up, making informed decisions, cutting through the lies can turn this thing around. Simply learning to say NO, this is the most precious word in the world. Learn to say NO, and then make a decision about YOUR direction. That is freedom, that is liberty.

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  • planning4acrash says:

    This is not a cost, it is a benefit to be flexible to adjust. Spain despirately needs an interest rate rise, but gave its liberty to achieve one to the ECB. What we will see, if this continues, is that national currencies strengthen against regional behemoths, that join a race downwards, following their financial masters. The result? Global currency order becomes impossible! The Danes, Polish will not accept it! Iceland may not be able to resist it, but they are irrelevant to the bigger scheme. The big deal made of Iceland is that the golablists succeeded there, but this is not their main test.

    HEADLINE: Mises.org is the biggest economics website in the WORLD, Alex Jones has the world’s largest radio show, Ron Paul got more money from serving soldiers than all the other candidates combined. People everywhere, waking up, making informed decisions, cutting through the lies can turn this thing around. Simply learning to say NO, this is the most precious word in the world. Learn to say NO, and then make a decision about YOUR direction. That is freedom, that is liberty.

    Reply
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  • I guess they are largely in the situation of UK in Lamonts time trying to keep parity wth the Euro.

    They’ll either end up with 15% interest rates trying to fight a loosing battle or be recognised as a high interest safe haven and attract alot of money looking for a return.

    I’m afraid in these times the latter is unlikely, but I feel this is a pity as IMO UK should have been raising rates earlier and currently I’m not sure us lowering rates (which seems to be the general opinion now) will have any effect other than devalue our currency further and import even more inflation.

    No doubt foreign imports will be removed from the RPI soon as they will be giving ‘skewed’ evidence according to the government.

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