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UK at dangerous junction /Item Club
Comments
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shortchanged wrote: »Here we are UK morgagees we will save you on average a guess of £20 a month off your mortgage, while the rest of the UK ecomony bends over and takes it up the tail pipe.
Current mortgage debt = 1.2 trillion pounds.
A 0.25% cut in rates puts 3 Billion pounds a year back into the economy.“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: »Current mortgage debt = 1.2 trillion pounds.
A 0.25% cut in rates puts 3 Billion pounds a year back into the economy.
Assuming no one in the country has a fixed rate, and that all deals are linked to BoE and all providers pass on the rate drop fully....0 -
HAMISH_MCTAVISH wrote: »Current mortgage debt = 1.2 trillion pounds.
A 0.25% cut in rates puts 3 Billion pounds a year back into the economy.
At what other cost Hamish?
Devaluing our currency futher making exports cheaper and increasing the cost of imports further! Cracking idea with inflation already running at 5%.
Why do you think our rate of inflation is already higher than the rest of the Eurozone.0 -
shortchanged wrote: »Devaluing our currency futher
Immensely debatable, and besides a weak currency has benefits at the moment.
If we enter a double dip recession the currency will likely fall just as much, but with none of the benefits.making exports cheaper
A very good thing. Essential if we're to rebalance our economy.and increasing the cost of imports further!
Which can only increase the demand for UK produced goods.Cracking idea with inflation already running at 5%.
Unremarkable by historical levels.Why do you think our rate of inflation is already higher than the rest of the Eurozone.
So you're aiming for us to have economic conditions and unemployment like Greece, Ireland and Spain as a "cure" for inflation?
Nice.“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: »Current mortgage debt = 1.2 trillion pounds.
A 0.25% cut in rates puts 3 Billion pounds a year back into the economy.
Can't believe you have said this.
When talking about rates rising, you pop up to tell us it won't effect that many as many are fixed and many are on collars which will need to be breached before it impacts on the payments.
Yet when talking of lower ing interest rates you come up with the above!?0 -
HAMISH_MCTAVISH wrote: »
So you're aiming for us to have economic conditions and unemployment like Greece, Ireland and Spain as a "cure" for inflation?
Nice.
Do you honestly believe that a 0.25% cut in the base rate is going to solve our problems?0 -
Butterfly_Brain wrote: »We have entered a period of stagflation the like of which we haven't seen since the 70's and that is a scary prospect because we no longer have the manufacturing base that helped get us out of the mire then.
How exactly did manufacturing get us out of the mire then.
It didn't - North Sea oil did.US housing: it's not a bubble - Moneyweek Dec 12, 20050 -
HAMISH_MCTAVISH wrote: »I
A very good thing. Essential if we're to rebalance our economy.
Which can only increase the demand for UK produced goods.
Do you understand the concept of trade deficit Hamish? The UK is already a net importer.
Increase demand for UK produced goods. What goods? The UK maunfactures very little by historical standards. If we were talking about Germany, then you may be correct.0 -
HAMISH_MCTAVISH wrote: »I
Inflation
Unremarkable by historical levels.
really ????
Since 1865 the only higher rates of inflation were caused by both world wars and the Oil shock inflation of the 1970's / 80's.
It took at least a decade to "cure" the last serious inflation explosion at the cost of huge unemployment and lost growth.
Never mind though, at least house prices went up - and that all that counts.US housing: it's not a bubble - Moneyweek Dec 12, 20050 -
shortchanged wrote: »Do you understand the concept of trade deficit Hamish? The UK is already a net importer.
Increase demand for UK produced goods. What goods? The UK maunfactures very little by historical standards. If we were talking about Germany, then you may be correct.
It manufactures more than ever before (at least up to 2007).
In terms of output, manufacturing in 2007 was double that in 1958.US housing: it's not a bubble - Moneyweek Dec 12, 20050
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