Time to raise interest rates, time to stop false BRICK economy

SuperV

BAE to fire 3000 people making killing machines used to kill humans and destroy. And they complain?

What about them thinking to produce machines that will make wealth? What about making machines for space exploration?

Decrease military budget, increase R&D budgets. Is it hard?

OptionARMAGEDDON

SuperV wrote: »

"The debt markets have been warned. A key rate setter-for China's central bank let slip – or was it a slip? – that Beijing aims to run down its portfolio of US debt as soon as safely possible.


"The incremental parts of our of our foreign reserve holdings should be invested in physical assets," said Li Daokui at the World Economic Forum in the very rainy city of Dalian – former Port Arthur from Russian colonial days."


http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/100011987/china-to-liquidate-us-treasuries-not-dollars/


This is a change of attitude - West doesn't know to keep in check its obligations. So, as we know, we will take over...


And there are 20 new Bsc engineers in China for each new Bsc engineer in the whole EU...

Good luck with that. Who has the capital to buy all the bonds?

Edit: latest moneyweek predictions:

http://www.thisismoney.co.uk/money/news/article-1607881/Interest-rates-News-predictions.html

Rate rise predictions: Money markets and economists
Mainstream forecasts for the first rise range between summer 2011 to early 2012. See economists' views below.
Swap markets reflect the City's bank rate expectations - not in an exact way, but they indicate trends in forecasting.
I've listed some historic swap rate prices (all taken mid-morning unless stated) and charts below to show how the market moves as economic prospects shift.
8 September
• 1.20% - one year
• 1.21% - two years
• 1.71% - five years

12 September
• 1.22% - one year
• 1.22% - two years
• 1.63% - five years

19 September
• 1.20% - one year
• 1.19% - two years
• 1.65% - five years

21 September
• 1.17% - one year
• 1.17% - two years
• 1.67% - five years

26 September
• 1.19% - one year
• 1.20% - two years
• 1.73% - five years

Read more: http://www.thisismoney.co.uk/money/news/article-1607881/Interest-rates-News-predictions.html#ixzz1ZDeSiVok

SuperV

OptionARMAGEDDON wrote: »

Good luck with that. Who has the capital to buy all the bonds?

Edit: latest moneyweek predictions:

http://www.thisismoney.co.uk/money/news/article-1607881/Interest-rates-News-predictions.html

There is still some capital, but will not be available in 12 or 24 months.

Re predictions - sorry, market showed it is not fit for purpose of predicting what will happen. If it were for BoE to keep the current policy, yes, the prediction is right. I believe they have some brain left, so I expect them to support R&D and "sanitise" QEfRD with rate raise.

Take a look at this:
http://www.bbc.co.uk/news/education-14949538
"Battle of the knowledge superpowers

By Sean Coughlan BBC News education correspondent Class of 2011 in Shanghai: China now has the second biggest share of the world's graduates
Continue reading the main story Knowledge economy

• Pocket-sized global university
• Qatar's global ambition
• Turning ideas into industries
• International students record numbers

Knowledge is power - economic power - and there's a scramble for that power taking place around the globe."

Wealth creation comes from knowledge creation, not from zero sum games.

Thrugelmir

SuperV wrote: »

BAE to fire 3000 people making killing machines used to kill humans and destroy. And they complain?

Without the Spitfire or Hurricane there would have been no Battle of Britain.

SuperV

Thrugelmir wrote: »

Without the Spitfire or Hurricane there would have been no Battle of Britain.

So, you expect Huns to come roaming again to the green villages of Britain?

Thrugelmir

SuperV wrote: »

So, you expect Huns to come roaming again to the green villages of Britain?

Merely that you stated "Money has to be invested in REAL Wealth creation". So obviously there are exceptions to the rule.

SuperV

Thrugelmir wrote: »

Merely that you stated "Money has to be invested in REAL Wealth creation". So obviously there are exceptions to the rule.

Real wealth creation in deed. Exceptions are negligible. So, what was the reason BAE didn't produce more wealth creation instead of wealth destruction machines? A bit like banks... it was simple and they didn't care.

Adam Smith mentioned that animal spirits must be ruled out of the market. Free market doesn't mean free-riding for those that don't care.

FTBFun

SuperV wrote: »

BAE to fire 3000 people making killing machines used to kill humans and destroy. And they complain?

What about them thinking to produce machines that will make wealth? What about making machines for space exploration?

Decrease military budget, increase R&D budgets. Is it hard?

Depressing as it is, a substantial amount of human progress has originated from weapons programmes or for military uses.

The synthesis of penicillin, for example.

Thrugelmir

FTBFun wrote: »

Depressing as it is, a substantial amount of human progress has originated from weapons programmes or for military uses.

Apollo space mission.

FTBFun

Thrugelmir wrote: »

Apollo space mission.

That has its origins in the German V-2 rocket, and its a well known fact that the US grabbed a lot of the scientists involved in its development to assist with their own rocketry development.