Friday, Mar 06, 2015

EU QE = UK deflation & rate cut

Guardian: Quantitative easing: what does it mean for consumers?

Euro devaluation exports deflation by reducing the cost of Eurozone exports to the UK, which the UK cannot block by treaty. BOE governor has stated that UK deflation will be met by a rate cut. Stemming the rise of Sterling will be sought as a quasi trade barrier against the Eurozone. It could yet move us closer to Brexit? That rate cut will immediately cause mortgage rates to plunge. Whilst UK prices have been soaring the last few months priced in Euros, a UK rate cut will see a return of nominal house price rises, priced in Sterling, though it is difficult to see how successful BOE can be in devaluing Sterling when they are standing in the way of a freight train.

Posted by libertas @ 04:05 AM (6955 views)
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21 Comments

1. wdbeast said...

Yep, looks like you must be right Libby, negative mortgage rates coupled with soaring house prices (especially in those areas around London close to the HS2) seem innevitable!

Friday, March 6, 2015 06:55AM Report Comment
 

2. debtserf said...

"what does it mean for consumers?"

QECB means more free money for banks, at consumers' expense.

Friday, March 6, 2015 08:19AM Report Comment
 

3. libertas said...

Not HS2, the new London Overground through Enfield plus Crossrail 1 and, if it is approved possibly just prior to the election, Crossrail 2.

Friday, March 6, 2015 08:30AM Report Comment
 

4. hpwatcher said...

The one-trick deflation obsessive strikes again. Funny how a year ago, he was obsessed with interest rate rises before he switched sides and is now going hell-for-leather in the opposite direction.

coupled with soaring house prices

Not sure you have been on Right Move recently. I'm seeing lots of reductions in my areas. Or is that just your wishful thinking?

EU QE will not necessarily be the same as US and UK QE - it's a different animal all together. In any event it will likely mean less money velocity, less investment, and possibly higher money markets.....although perhaps not a higher gold price, as gold is something they actually need.

Friday, March 6, 2015 08:34AM Report Comment
 

5. quiet guy said...

@Libertas

"That rate cut will immediately cause mortgage rates to plunge."

A bit of an oversimplification surely? Trackers with collars and fixes won't move and that accounts for a pretty big chunk of today's market I'd expect. It will be interesting to see how your prediction for a rate cut plays over the next year or so.

@hpwatcher

"perhaps not a higher gold price, as gold is something they actually need."

I don't understand. If gold becomes more desirable relative to cash, I'd expect its price to rise.

Friday, March 6, 2015 09:32AM Report Comment
 

6. britishblue said...

This has much wider connotations than mere house prices. As Gerald Celente has been saying for some time, the cycle is:

Recession, depression, currency wars, trade wars then world wars.

We have had the first two and much of Europe is mired in depression. I am just surprised how far the third element 'currency wars; has hotted up in the last few months. with the race to the bottom with everyone QE ing and debasing their currency how long before trade wars start? I suspect the argument about house prices will be in a much wider context that just interest rates headed into the future

Saturday, March 7, 2015 04:47PM Report Comment
 

7. britishblue said...

This has much wider connotations than mere house prices. As Gerald Celente has been saying for some time, the cycle is:

Recession, depression, currency wars, trade wars then world wars.

We have had the first two and much of Europe is mired in depression. I am just surprised how far the third element 'currency wars; has hotted up in the last few months. with the race to the bottom with everyone QE ing and debasing their currency how long before trade wars start? I suspect the argument about house prices will be in a much wider context that just interest rates headed into the future

Saturday, March 7, 2015 04:48PM Report Comment
 

8. britishblue said...

This has much wider connotations than mere house prices. As Gerald Celente has been saying for some time, the cycle is:

Recession, depression, currency wars, trade wars then world wars.

We have had the first two and much of Europe is mired in depression. I am just surprised how far the third element 'currency wars; has hotted up in the last few months. with the race to the bottom with everyone QE ing and debasing their currency how long before trade wars start? I suspect the argument about house prices will be in a much wider context that just interest rates headed into the future

Saturday, March 7, 2015 04:48PM Report Comment
 

9. britishblue said...

This has much wider connotations than mere house prices. As Gerald Celente has been saying for some time, the cycle is:

Recession, depression, currency wars, trade wars then world wars.

We have had the first two and much of Europe is mired in depression. I am just surprised how far the third element 'currency wars; has hotted up in the last few months. with the race to the bottom with everyone QE ing and debasing their currency how long before trade wars start? I suspect the argument about house prices will be in a much wider context that just interest rates headed into the future

Saturday, March 7, 2015 04:49PM Report Comment
 

10. britishblue said...

This has much wider connotations than mere house prices. As Gerald Celente has been saying for some time, the cycle is:

Recession, depression, currency wars, trade wars then world wars.

We have had the first two and much of Europe is mired in depression. I am just surprised how far the third element 'currency wars; has hotted up in the last few months. with the race to the bottom with everyone QE ing and debasing their currency how long before trade wars start? I suspect the argument about house prices will be in a much wider context that just interest rates headed into the future

Saturday, March 7, 2015 04:49PM Report Comment
 

11. britishblue said...

This has much wider connotations than mere house prices. As Gerald Celente has been saying for some time, the cycle is:

Recession, depression, currency wars, trade wars then world wars.

We have had the first two and much of Europe is mired in depression. I am just surprised how far the third element 'currency wars; has hotted up in the last few months. with the race to the bottom with everyone QE ing and debasing their currency how long before trade wars start? I suspect the argument about house prices will be in a much wider context that just interest rates headed into the future

Saturday, March 7, 2015 04:50PM Report Comment
 

12. britishblue said...

sorry. I haven't caught a virus from Libertas. I pressed the submit button several times as it didn't appear to have gone.

Saturday, March 7, 2015 04:53PM Report Comment
 

13. pete green said...

Wise words BB. needs to be said a few times

"315" src="https://www.youtube.com/embed/Nbw_INDttic" frameborder="0" allowfullscreen>

Saturday, March 7, 2015 07:59PM Report Comment
 

14. jack c said...

Pete, that link isn't working do you have another ?

Sunday, March 8, 2015 10:16AM Report Comment
 

15. cornishman said...

Jack, I think this is probably the clip:

https://www.youtube.com/watch?v=Nbw_INDttic

"In this short film Fred Harrison provides a long term perspective on the development of tensions leading to the two world wars of the twentieth century. In Fred's analysis, both had their genesis in booms fuelled by property speculation. Financial leverage provided additional fuel for the economic boom leading to the Wall Street Crash and the ensuing depression. The circumstances today are eerily similar."

Sunday, March 8, 2015 10:58AM Report Comment
 

16. jack c said...

Thanks cornishman I'll have a look at your suggested link.

Sunday, March 8, 2015 01:42PM Report Comment
 

17. libertas said...

No. The real push for the World Wars, was globalists creating a crisis to justify world government.

World War I was designed to produce the League of Nations. When that organisation broke down, they decided that a larger world war was required to produce the European Union and United Nations.

The third world war started immediately afterwards and has continued ever since, creating and defending the huge trading blocks run by the globalists, detached from national democracy. We see the drug war being used to create a North American Union, ongoing conflict in Asia to create the Pacific Region, that is drawing in Australia and New Zealand, without the knowledge of the people there.

Continuous wars in Africa to produce an African Union.

Continuous wars in the Middle East to produce a Middle Eastern Union, with some bits splintering into the EU, such as Turkey.

The Third World War is ongoing, I believe, to bring all the trading blocks under the United Nations, but the UN and World Bank will not be visible to most, who believe they are ruled from within their trading block, i.e. the EU, yet all that blocks like the EU do is follow international treaties. Interestingly, the UN's charter on Human Rights, ends with an ominous "right" that no state can remove rights unless those rights are contrary to the aims and objectives of the UN, which effectively hands over self sovereignty of the individual to the global corporatist state.

So, the third world war is already here. It is the perpetual state of war "prophesied" by George Orwell, which wasn't difficult for him since he learned that plan laid out in 1984 from working deep within the "UK" intelligence services, but it is interesting how he hid out whilst writing it and died soon after.

A lot of these plans are laid out in Carol Quigley's "Tragedy and Hope" and "The Anglo-American Empire". He was Clinton's mentor at University and the official historian for the Council on Foreign Relations, which is the American wing of the Royal Institute of International Affairs. They had to drop the world "Royal" from the US wing for obvious reasons, and so we see that secretive think tanks sit behind and direct the United Nations on behalf of shady groups.

A European financial war is presently playing out in Europe, to bring countries into line. Ukraine is an interesting one because it is being split between Russia and Europe to avoid there being a strong national country in-between the two trading blocks.

As Orwell explained, the purpose of war is not only to keep people in line, but also to destroy "excess" wealth that would allow people to be self-sufficient and thus leery of handing liberties to authoritarian governments for safety, security and financial stability, which is why we achieve none of these.

Sunday, March 8, 2015 04:33PM Report Comment
 

18. pete green said...

Libertas, how about an actual critique of Fred's theory. The cycle of land price speculation and its effects is very compelling, both as logic and from observable data.

Sunday, March 8, 2015 05:32PM Report Comment
 

19. tom101 said...

You need to talk to someone. Offline perhaps....

Sunday, March 8, 2015 05:37PM Report Comment
 

20. pete green said...

A much longer talk on Fred Harrison's theory can bee found here: http://youtu.be/sLcI3jBbi6Y

Sunday, March 8, 2015 05:40PM Report Comment
 

21. sneaker said...

Quantitative easing sounds like a boatload of laxative, sent to deal with Greenspan's "unusual strains".

Monday, March 9, 2015 01:31PM Report Comment
 

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