Telegraph warns of "Period of Austerity"

HAMISH_MCTAVISH

bernard_shaw wrote: »

And here was me thinking that "inflation will only come with growth at this point.";)

Oh dear......

Your link states a few months of inflation above target is likely due to the return of VAT.....

And yet I stated that....

And the BoE has already discounted raising rates for the upcoming predicted temporary inflation spikes for higher energy costs and the return of VAT.

As for this little nugget of misinformation......

I wonder if there are any factors other than inflation which might put pressure on the BoE to raise rates?

No, there aren't.

It is stated policy not to target exchange rates using interest rates. Which after the ERM debacle is probably wise......

A genuine sterling crisis could, of course, require raising rates to combat the subsequent inflation, but such a crisis is unlikely to happen. If printing 200 billion didn't cause one, theres little left that could.... There is no prospect of a UK AAA downgrade for the next few years, and the much hyped (on hpc) gilt strike has failed to materialise.

Sorry, but your increasingly fanciful constructions of unlikely events that have almost zero chance of occurring being the trigger for the "next leg down" just serve to illustrate the extraordinary levels of desperation that are so pervasive in the bear camp at the moment.

markharding557

All of the leaders in the last fifty years have made a terrible mess of this country-each and every one of them

The_White_Horse

i think the best man for the job of leading us out of this mess is Terry Christian.

michaels

It's conflicting incentives init - we want politicians who want to run the country well - we get ones who are ambitious enough to climb the slippery pole within parties and ruthless enough to do anything to get elected every 4/5. Given this who on earth would be stupid enough to believe 'no more boom and bust'?

years

markharding557 wrote: »

All of the leaders in the last fifty years have made a terrible mess of this country-each and every one of them

Bootski

markharding557 wrote: »

All of the leaders in the last fifty years have made a terrible mess of this country-each and every one of them

& You're not wrong

Nobody made it a better place, did they:rolleyes:

kabayiri

As we are frequently reminded, we live in a global economy. In such an environment the location of a worker is a fluid notion for some of the big companies.

2 recent news items didn't make it here on this forum. 1) the sale of Volvo to Geely , 2) the sale of Saab technology by GM to chinese car makers.

Other countries will be quite happy to take advantage of a weakened UK position in the world economy stakes. This includes Chinese automotive suppliers.

Is there any major policy initiative out of all the parties which even attempts to address this?

chucky

The_White_Horse wrote: »

i think the best man for the job of leading us out of this mess is Terry Christian.

i thought that you were more of a Jimmy Somerville or Erasure fan

Old_Slaphead

markharding557 wrote: »

All of the leaders in the last fifty years have made a terrible mess of this country-each and every one of them

Thought Sir Alec Douglas-Home did ok

Bootski

:eek::eek::eek::eek::eek:

bernard_shaw wrote: »

http://www.telegraph.co.uk/finance/economics/6879463/VAT-rise-will-mean-months-of-stagflation.html

A surprisingly downbeat article in the usually Panglossian Telegraph quoting the usually equally Panglossian CEBR.

Stagflation? Compartflation? Biflation? Disinflation? Imported inflation?

And here was me thinking that "inflation will only come with growth at this point.";)

I wonder if there are any factors other than inflation which might put pressure on the BoE to raise rates?

Well I'm off in the new year.

Inheretied a property after I lost my Mum and not going to tolerate nor handle the responsibily of selling it or renting it out

I'm leaving the homestead, don't really care what happens to it now. Just want to get on with my life

Chiao


You can have it!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Thrugelmir

HAMISH_MCTAVISH wrote: »

A genuine sterling crisis could, of course, require raising rates to combat the subsequent inflation, but such a crisis is unlikely to happen. If printing 200 billion didn't cause one, theres little left that could.... There is no prospect of a UK AAA downgrade for the next few years, and the much hyped (on hpc) gilt strike has failed to materialise.

Something to do with the pumping in of £200 billion of QE liquidity maybe. As the forecast issusance for 2009/2010 is around £220 billion of gilts. So net sales are minimal.

So who's going to buy the additional £600 billion pounds worth of new gilts that is forecast to be issued by 2014. Thats over and above rescheduling existing debt.

Also the £200 billion of QE may well have be totally withdrawn in that time frame as well.