Wednesday, December 12, 2012

“keep rates on hold for an extended period of time” – So what is 5 years?

Carney broaches dumping inflation target

Mark Carney, the next governor of the Bank of England, has suggested he will act much more aggressively to revive the UK economy when he takes charge next summer, including dumping the BoE’s much-vaunted inflation target if growth fails to pick up. In a clear break with the views of the BoE’s current senior management, Mr Carney, now governor of the Bank of Canada, said on Tuesday that central banks should consider more radical measures – such as commitments to keep rates on hold for an extended period of time and numerical targets for unemployment – when rates are near zero. More If those measures fail to have the desired effect, Mr Carney said central banks should consider scrapping their inflation targets – a cornerstone of economic policy around the world in recent decades

Posted by hpwatcher @ 01:13 PM (2246 views)
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13 thoughts on ““keep rates on hold for an extended period of time” – So what is 5 years?

  • Good comment:

    We followed this recipe for 5 years now and there is no growth..

    This is ridiculous and it really will impact savers faith in paper money (or at least sterling)..

    Are CBs trying hard to create an asset price bubble in gold and housing? It is about time, that they allow the economy to take its proper medicine (higher rates, defaults) and allow it then to grow.
    Otherwise we are stuck in Japan limbo for many many decades to come.

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  • Carney can see what a real mess we are in. Exceptional responses to exceptional circumstances.

    This website only wanted for affordable homes in the UK. The housing market is way beyond that now, as we are in a depression and houses are all but worthless.

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  • BUY GOLD!

    This guy is a globalist. He intends to destroy Sterling to force us into the Euro. Ah, forget gold, you folks will need bayonets, because you are too busy naval gazing. I hope you all understand that at some point war will be required to get back our liberties. If they can decimate our parliamentary democracy, destroy our currency, wreak common law rights and destroy our constitutional freedom, then you will live under tyranny or, you will have to fight to get it back.

    Expect civil war or war across Europe within at least 10 years.

    Expect European weakness due to this to trigger Russia and China eying up Europe for invasion, maybe within 15 or 20yrs.

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  • Will,
    I thought it was stagflation, but hey ho.

    Last year we had a troll on the site continually telling us the end of the world was in sight, the Mayan calendar ends on 21st December 2012 apparently. Looks like only one week of heavy drinking left…however, the article mentions 5 years…!

    Perhaps the “end” has been put on hold – just like HPC?

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  • “he will act much more aggressively to revive the UK economy when he takes charge next summer, including dumping the BoE’s much-vaunted inflation target if growth fails to pick up” – I think he’ll find this was dumped so time ago based on the number of times the present lot failed to “hit the target” – Roman Abramovich for Chancellor – that might make a difference to staff turnover at the BOE.

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  • BUY GOLD!

    Gold is in a period of consolidation. It has done virtually nothing for around 18 months.

    Just sayin’ not advising one way or the o’ther. Do your own research.

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  • hpwatcher,

    What is the difference between a ‘period/ trend of consolidation’, and a ‘ period/ trend of poor performance’ .

    I always seem to get the two mixed up.

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  • “Russia and China eying up Europe for invasion, maybe within 15 or 20yrs.”

    In Mayan years?

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  • Why would Russia or China invade us? Much easier to just buy up all the property in the UK.

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  • Why would Russia or China invade us? Much easier to just buy up all the property in the UK. Then dump it at once causing property crash & economic failure…

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  • “Why would Russia or China invade us? Much easier to just buy up all the property in the UK” then cut off the connection to the sky dishes causing panic on the streets of London, panic on the streets of Birmingham, Panic on the streets of Carlisle, Dublin, Dundee, Humberside…..

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  • What is the difference between a ‘period/ trend of consolidation’, and a ‘ period/ trend of poor performance’ .

    Interesting question, the answer does not depend on what is happening with gold alone. One needs to keep an eye on the [economic] fundamentals, which look pretty dreadful right now, esp. in relation to what central banks are continuing to do. You have to remember that gold has been in a bull run for 10 years, so a period of stability like this should offer some comfort. Going forward, the case is better than ever, and gains greater conviction every single day.
    Did you know, for example, that most managed funds have less than 1% exposure to gold – at a time when central banks have quietly been increasing the amount that they hold.

    But we shall see, do your own research and act in accord with that. Good luck!

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