What is interest rate likely to rise to?

Market_Oracle

ashm1 wrote:

It's funny that the dollar coin is being pushed again....
http://www.timesonline.co.uk/article/0,,11069-2462714,00.html



Any recommendations for goods to get while in New York ?

Is there a MSE article about currency exchange rates ?


Thanks,

Ashley.

if your a gamer, then the PS3 looks very cheap its to sell in the UK for £425 and on in the US at $550 , thats £285 ! Get it and resell it in the Uk if yuo can ! I'd imagine you could sell it for £500+ ! Due to lack of UK supply.

clear_blu

Market_Oracle wrote:

if your a gamer, then the PS3 looks very cheap its to sell in the UK for £425 and on in the US at $550 , thats £285 ! Get it and resell it in the Uk if yuo can ! I'd imagine you could sell it for £500+ ! Due to lack of UK supply.

Will it work in Uk.......I thought they had different power supplies and different graphics system in the USA. I'm not an expert though.......I cure most computer problems with my hammer............:D

Market_Oracle

clear_blu wrote:

Will it work in Uk.......I thought they had different power supplies and different graphics system in the USA. I'm not an expert though.......I cure most computer problems with my hammer............:D

Yes you can use it in the UK, by using a stepdown transformer and a TV or monitor thats supports NTSC or a convertor.

And the games will have to be from the US, though given the dollar these should be cheaper than those on sale in the uk

melbury

So many people go on about how terrible it would be if interest rates were to rise. We were paying 14.25% on our first mortgage in the early 1980's and although house prices were much lower, so were wages! It has all been to the borrowers advantage for years now.

meanmachine_2

melbury wrote:

So many people go on about how terrible it would be if interest rates were to rise. We were paying 14.25% on our first mortgage in the early 1980's and although house prices were much lower, so were wages! It has all been to the borrowers advantage for years now.

Here we go again....

Let's conveniently ignore...

Rampant wage inflation @ c20% a year!
Mortgage tax relief
An average house price in 1980 of 20K!!

I'd happily pay 14% interest rates if my wages were going up by 20% a year. Who wouldn't!!

melbury

meanmachine wrote:

Here we go again....

Let's conveniently ignore...

Rampant wage inflation @ c20% a year!
Mortgage tax relief
An average house price in 1980 of 20K!!

I'd happily pay 14% interest rates if my wages were going up by 20% a year. Who wouldn't!!

Our wages certainly didn't go up by 20% - never!!! Where did you get that idea from? I suppose we just didn't expect to have two holidays a year, start off with everything brand spanking new and everything else that is expected nowadays.

meanmachine_2

Sorry, I didn't mean to start an argument, but interest rates were higher because wage rises were much higher.

The two are directly connected.

The BoE continually threatens to raise interest rates if wages start to push above 4%.

And if you were unionised, your wages certainly were raising at a double digit rate.

cloud_dog

The thing to consider is that the interest rate itself is (sort of) irrelevant, its the difference between the interest rate and inflation rate that is important. You'd be worse off if int rates were 8% and inflation was running at 7% (assuming tax, blah, blah, blah).

cloud_dog

melbury

meanmachine wrote:

Sorry, I didn't mean to start an argument, but interest rates were higher because wage rises were much higher.

The two are directly connected.

The BoE continually threatens to raise interest rates if wages start to push above 4%.

And if you were unionised, your wages certainly were raising at a double digit rate.

and I am sorry to be so snappy - call it grumpy old woman syndome!

But we were not unionised and it really was a struggle to meet the mortgage payments. Our wages were relatively low and a 14.25% interest rate was very high.

Market_Oracle

cloud_dog wrote:

The thing to consider is that the interest rate itself is (sort of) irrelevant, its the difference between the interest rate and inflation rate that is important. You'd be worse off if int rates were 8% and inflation was running at 7% (assuming tax, blah, blah, blah).

cloud_dog

The whole purpose of raising and lowering interest rates is to control inflation, which is the system we have been living under since the early 1970's which is through the control of money supply !

UNFORTUNATELY ! Goverments like people have forgotten those lessons of the 70's and 80's due to the twin deflationary effects of China and Japan.

Countries such as the US and UK have let their money supplies soar... this will and IS inducing FUTURe inflationary pressures which we are starting to experience now.

Before people start correcting me, yes its far more complicated than that !, as credit is also a function of the money supply, and we have a very big credit bubble to say the least ! Which when it implodes ! :eek:

Anything could set it off, a US housing slump perhaps ? Or hedge funds like dominos going bellyup ? Or what about the dollar falling ? No ? could not happen ?, all three are already making big ripples in the waters !

Oh well, back to watching day to day gyrations and leaving the big picture to unfold overtime....