Guarduan/Reuters: BoE to cut to 1.5% in Dec

setmefree2

!!!!!!? wrote: »

This is all part of priming the pump for inflation. No doubt the reasoning is that they can cancel out the deflation with an equal and opposite amount of inflation. I don't think it'll happen that way, though. The much greater likelihood is either of failure to inflate, leading to an even more catastrophic bust or rampant over-inflation leading to Zimbabwe/Weimar style disaster.

Ah you are a pesssimist - I see you have covered both of the worst case scenarios. Firstly, that deflation takes over and we head into a deflationary spiral. Or, Secondly, inflation takes over and we get hyperinflation. Both bleak prospects.

I am an optimist:D I think the BOE and government will find a middle way.

WTF?_2

setmefree2 wrote: »

Ah you are a pesssimist - I see you have covered both of the worst case scenarios. Firstly, that deflation takes over and we head into a deflationary spiral. Or, Secondly, inflation takes over and we get hyperinflation. Both bleak prospects.

I am an optimist I think the BOE and government will find a middle way.

No, I'm a realist.

That chances that the BoE will manage to inflate by exactly enough to cancel the effects of deflation is minimal.

They'll under-do it and fail, leaving the country even more indebted or they'll overcook and trigger strong inflation.

Still, your faith in the MPC is admirable given that their performance to date.

Heyman_2

!!!!!!? wrote: »

This is all part of priming the pump for inflation. No doubt the reasoning is that they can cancel out the deflation with an equal and opposite amount of inflation. I don't think it'll happen that way, though. The much greater likelihood is either of failure to inflate, leading to an even more catastrophic bust or rampant over-inflation leading to Zimbabwe/Weimar style disaster.

Words fail me.

Zimbabwe style disaster? What, you mean as in, no food on the shelves, starving families, no clean running water, rampant disease and despair? Maybe I'll stick digging in the garden now for water and roots? :rolleyes:

I don't disagree with some of your overall points but please try and keep your postings within the bounds of sanity and without resorting to hysteria.

WTF?_2

Heyman wrote: »

Words fail me.

Zimbabwe style disaster? What, you mean as in, no food on the shelves, starving families, no clean running water, rampant disease and despair? Maybe I'll stick digging in the garden now for water and roots? :rolleyes:

I don't disagree with some of your overall points but please try and keep your postings within the bounds of sanity and without resorting to hysteria.

To think that about a year ago, some crazies were warning that the world could be facing a 1930's style economic disaster.

pickles110564

Heyman wrote: »

Words fail me.

Zimbabwe style disaster? What, you mean as in, no food on the shelves, starving families, no clean running water, rampant disease and despair? Maybe I'll stick digging in the garden now for water and roots? :rolleyes:

I don't disagree with some of your overall points but please try and keep your postings within the bounds of sanity and without resorting to hysteria.

Dont worry !!!!!!? will be back to normal soon as he has had his morning medication

Dithering_Dad

Heyman wrote: »

Words fail me.

Zimbabwe style disaster? What, you mean as in, no food on the shelves, starving families, no clean running water, rampant disease and despair? Maybe I'll stick digging in the garden now for water and roots? :rolleyes:

I don't disagree with some of your overall points but please try and keep your postings within the bounds of sanity and without resorting to hysteria.

I'm so glad that so many more people are seeing through !!!!!!? and his hysterical rhetoric and half-baked financial rantings based on his extensive Daily Mail readings. It was so lonely on my own.

Out of interest, has anyone noticed that there has been a 'sea change' on the Housing boards? To my mind, there seems to be a slight move away from the HPC hardliner posters who constantly rant about global financial devastation, BTL landlords being scum, Home owners all being a bunch of financially naive MEWing spendthrifts. Instead we now have more 'middle ground' contributors who know that we're in a tight spot economically, but nothing we haven't seen and worked through before. I also think that quite a few people are starting to look at buying (if they haven't already) and so are less tolerent to the anti-homeowner rants.

Whatever the cause, it's certainly very refreshing. Hopefully as !!!!!! and his sycophants start feeling sidelined they will either move off to the HPC website or will modify their views.

Heyman_2

!!!!!!? wrote: »

To think that about a year ago, some crazies were warning that the world could be facing a 1930's style economic disaster.

So Britain is going to become a third world country overnight then?

Heyman_2

Dithering_Dad wrote: »

I'm so glad that so many more people are seeing through !!!!!!? and his hysterical rhetoric and half-baked financial rantings based on his extensive Daily Mail readings. It was so lonely on my own.

Out of interest, has anyone noticed that there has been a 'sea change' on the Housing boards? To my mind, there seems to be a slight move away from the HPC hardliner posters who constantly rant about global financial devastation, BTL landlords being scum, Home owners all being a bunch of financially naive MEWing spendthrifts. Instead we now have more 'middle ground' contributors who know that we're in a tight spot economically, but nothing we haven't seen and worked through before. I also think that quite a few people are starting to look at buying (if they haven't already) and so are less tolerent to the anti-homeowner rants.

Whatever the cause, it's certainly very refreshing. Hopefully as !!!!!! and his sycophants start feeling sidelined they will either move off to the HPC website or will modify their views.

Well...I wouldn't single out !!!!!! exclusively although I know that you and he(she?) have had some tussles here over the course of time, along with lots of supporting players on either side.

I think everyone here has the ability to raise valid points but as with all forums it's a case of sifting through the rubbish, the smugness, the hysteria and the irrelevance.

I wouldn't single anyone out here as having not contributed posts that fall into the above categories at some point or another, myself included.

WTF?_2

Heyman wrote: »

So Britain is going to become a third world country overnight then?

No - but we are set to become a lot poorer in a relatively short period of time.

The axis of power in the economic world is shifting and the current crisis which originated in the USA and Western economies has resulted in a sudden shifting of economic fortune away from the West rather than the relatively orderly drift of econmic power that was the norm before. In the future, the emerging economies will wield a lot more influence.

http://news.bbc.co.uk/1/hi/business/7718277.stm

Heyman_2

!!!!!!? wrote: »

No - but we are set to become a lot poorer in a relatively short period of time.

The axis of power in the economic world is shifting and the current crisis which originated in the USA and Western economies has resulted in a sudden shifting of economic fortune away from the West rather than the relatively orderly drift of econmic power that was the norm before. In the future, the emerging economies will wield a lot more influence.

http://news.bbc.co.uk/1/hi/business/7718277.stm

Yes the country is 'poorer' because of what has happened but let's strike a balance - this is not and will never be a Zimbabwe/Weimar Republic situation.

The axis of power argument (i.e. the decline of the West and the rise of the East) comes up every decade. There's nothing 'sudden' about it, it's cyclical, just like economies. I was reading a fiction book recently written in 1974 and two characters had a discussion about this exact subject all the way back then.

There is no such thing as the 'norm', the only normality is that the balance of power moves in cycles over many years. You are inferring that this is a unique situation and that is not correct.