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Yet another BOE warning shot across over debted homeownerss heads
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to save the indebted economyl
Fixed that for you....
The purpose of lowering rates is primarily to increase consumer spending, thus preventing deflation and stimulating the wider economy.
The primary mechanism for this happening is by reducing the amounts of money that the 11 million households with mortgages pay to the banks in interest, thus freeing up funds to be spent in the wider economy and preventing a deflationary spiral. It also helps to keep unemployment and reposessions from being as bad as they would have been otherwise, and stimulates investment in business.
To that extent it has been a successful policy.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »Fixed that for you....
The purpose of lowering rates is primarily to increase consumer spending, thus preventing deflation and stimulating the wider economy.
The primary mechanism for this happening is by reducing the amounts of money that the 11 million households with mortgages pay to the banks in interest, thus freeing up funds to be spent in the wider economy and preventing a deflationary spiral. It also helps to keep unemployment and reposessions from being as bad as they would have been otherwise, and stimulates investment in business.
To that extent it has been a successful policy.
Thats rich coming from the guy who insisted gold and silver were going to crash 100% guaranteed:rotfl:
When in fact silver went up 70% last year alone and there is no reason the trend will slow down at all.0 -
I don't think anyone thought such low rates were going to last forever the question has always been when and how quickly rates will rise. That still remains to be seen. I think they will only rase rates 0.25% every 2nd or 3rd month to give people chances to adjust their budgets and not cause a mass withdrawal of consumer spending from the economy. It will be years before rates are up at 5%MF aim 10th December 2020 :j:eek:MFW 2012 no86 OP 0/2000
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HAMISH_MCTAVISH wrote: »Fixed that for you....
The purpose of lowering rates is primarily to increase consumer spending, thus preventing deflation and stimulating the wider economy.
The primary mechanism for this happening is by reducing the amounts of money that the 11 million households with mortgages pay to the banks in interest, thus freeing up funds to be spent in the wider economy and preventing a deflationary spiral. It also helps to keep unemployment and reposessions from being as bad as they would have been otherwise, and stimulates investment in business.
To that extent it has been a successful policy.
I wouldn't bother, I don't think Foxy can see past the [STRIKE]end of his/her nose[/STRIKE] housing market.'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
Dirk_Rambo wrote: »yes. i remember hameesh said this to. mctaveesh was wrong again.
so hameesh. gaw boil yer heed wee man
I have often wondered why someone posts a 'parody' of a west coast slang about someone from aberdeen/aberdeenshire?? I keep thinking its like using cockney rhyming slang to a liverpudlain.MF aim 10th December 2020 :j:eek:MFW 2012 no86 OP 0/2000
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If you look at what is happening to the RPI at the moment, price rises are caused almost entirely by imported goods (or at least internationally traded ones) rising in price and by tax rises. Increasing interest rates would have negligible impact on that.
Domestic inflation is pretty much nil.0 -
If you look at what is happening to the RPI at the moment, price rises are caused almost entirely by imported goods (or at least internationally traded ones) rising in price and by tax rises. Increasing interest rates would have negligible impact on that.
Domestic inflation is pretty much nil.
Higher interest should strengthen STG (in theory) which would in turn reduce the price of imported goods.'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
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RenovationMan wrote: »Though the question is then how we have an export led recovery with a high value currency.
Not complicated - We don't
Tell you what, let us stick with the low interest rates.:) 'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
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