You're right. There is no economic policy which can guarantee against problems into the indefinite future. Whatever systems, precautions, or regulators are put in place today, future generations are sure to elude them or abolish them. Such is human nature! Mark Twain said: Never tear a fence down until you know why it was put up. And this is as widely ignored today as ever.
When we talk about inflation or deflation we sometimes forget that either can have multiple and sometimes opposing causes which require completely different remedies.
On the contrary, more qe is satan himself. More air in the bubble, more bang when it goes. The Jesus bit was that we actually need a miracle now, nothing else can get us out of this shit.
Well actually QE scales down the book debt by building it into the currency itself (reduces the corresponding assets too, of course). If the currency is getting too strong, as Sterling is at the moment, a bit more QE might help. There has been a UK housing bubble recently, in my view, which may well pop for a while, but that's little to do with QE. Interesting question: Now that the £ Sterling has topped $1.70 is that a good thing or a bad thing? And for whom?
Itll be fucking good for me as im going on hols to florida in 6 weeks and just about to phone simpson over there for a new lid after I put a large dent in the last one...! Plus on top of that Ive got my eye on a second hand ohlins shock for the hyper as well!!
you have to have the man made recessions by the chosen few, for them to safe guard their interests, to then make a load more money again come a hype.....
Well, turns out my prediction was wrong: they haven't raised it from 0.5% ... yet. New guess: maybe in December. Surely the MPC will want to avoid raising it during the run up to the next general election?
Nervous nellyism by the looks of things. I suspect borrowers will be safe until General Election time ... at least, I hope I will be
I think I have the same deal - I couldn't believe it when they offered it to me but I snapped it up and have been benefitting ever since.
My guess is they will be reluctant to increase it all. From what i am seeing money and spending is tightening up again and Europe looks like heading back into recession.
I had to get a mortgage for the business a few years back. Rolling 0.59% above base, comes with a chq book and pay back as much as you like with daily interest cdalculations. Nice. My bank Keep trying to get me to upgrade my facility.... Very funny people.
Was out with a few boys from the BOE and Mellon last night, general consensus is we won't see it rise this year. Have heard rumours about another recession too, let's hope not
So it's still held at 0.5% in November; although two of the MPC are voting for a rise, the majority say not. The way it is looking, no rate rise until after the general election in May then. Prospects of a rise, which looked quite high, have receded substantially recently. As always, the media call that good news or bad news according to their various prejudices.
I'm no economist, but I think things may be influenced thus: The last consumption boom was fuelled by credit. Now people have not only maxed their cards, their job situation is also precarious and their wages are not rising. If you want people to get out and spend (which apparently is necessary to restart the economy) then you don't want them to save instead. Low interest rates help this. You also don't want people crippled by interest payments if you want them to be buying more consumer goods. Until wages really are rising and people can go back to paying on the never-never, I see no reason why they'd increase interest rates.
