July 2013 - BoE rates left on hold

N1AK

ILW wrote: »

But if much of that extra value is simply converted into inflation, where is the advantage? Except as a way of writing down debt.

If the government has 40% of the money in circulation and then prints another 10%, assuming inflation keeps the total value of the money the same then they still go from having 40% of the value to 45.5% of the value.

It's easier, politically, to get 5.5% of the countries money by printing than passing a wave of huge tax increases. The fact that, as you note, it also helps manage our debts to some extent is a bit of a Brucy (?) bonus.

ILW

N1AK wrote: »

If the government has 40% of the money in circulation and then prints another 10%, assuming inflation keeps the total value of the money the same then they still go from having 40% of the value to 45.5% of the value.

It's easier, politically, to get 5.5% of the countries money by printing than passing a wave of huge tax increases. The fact that, as you note, it also helps manage our debts to some extent is a bit of a Brucy (?) bonus.

Not if you are one of the people with no debts.

N1AK

ILW wrote: »

Not if you are one of the people with no debts.

Well as I was giving the government's perspective I can assure you they aren't debt free :rotfl:

People don't have a god given right to hold sterling with high interest rates and low inflation. The currency should be managed based on the best interests of the country, which often means allowing its value to fall or discouraging savings. Nobody promised anyone with a sterling saving account a good return; the evidence is actually pretty strong that keeping all your money in sterling savings isn't a smart move.

wotsthat

Graham_Devon wrote: »

Well I don't recall that. More barking. More laying made up nonsense at my feet for you to bark at.

Pop up a quote of me saying that as I can't find it.

Sorry you were acting as Mervyn King's spokesman.

Graham_Devon wrote: »

While the BOE certainly do want to keep rates low. Mervyn King (again, this is not me) stated that they will do all they can to do so. However, if world events dictate that rates have to increase, then indeed, rates will increase.

There is little the BOE can do in those circumstances.

As you say I suppose we just have to accept that world events are dictating that rates stay put and there's little the BoE can do about it.

OffGridLiving

ess0two wrote: »

Me thinks Graham needs a few days away from this board,seems to be getting hot under the collar and barking a lot.

No response from Graham on my post. It would be nice if he just acknowledged it and admitted that he's no better or worse than others. If he did want all the personal stuff to stop against him, that perhaps if he stuck to the topic himself instead of 'barking' at others, then others may follow suit. If they don't, then at least he could claim the moral high-ground and not look foolish.

Just a thought.

wotsthat

grizzly1911 wrote: »

A true Messiah, why did we wait so long.

I'm normally quite cautious but when the sky was about to fall as Mr. Bernake made his ill time comments I retrieved a years worth of pension contributions from my overpayments pot and bought more shares in my sipp.

So far I like Mr. Carney.

chucknorris

wotsthat wrote: »

I'm normally quite cautious but when the sky was about to fall as Mr. Bernake made his ill time comments I retrieved a years worth of pension contributions from my overpayments pot and bought more shares in my sipp.

So far I like Mr. Carney.

I also shifted another 65k into the ftse about then too. I could actually have done with putting another 35k in but I wanted some held back in reserve just in case the ftse plummeted.

wotsthat

chucknorris wrote: »

I also shifted another 65k into the ftse about then too. I could actually have done with putting another 35k in but I wanted some held back in reserve just in case the ftse plummeted.

There's plenty of chance for things to go south but I just got fed up of trying to time things. Partly why I fixed my mortgage way out - one less thing to clutter the thought process.

chucknorris

wotsthat wrote: »

There's plenty of chance for things to go south but I just got fed up of trying to time things. Partly why I fixed my mortgage way out - one less thing to clutter the thought process.

I have been light of shares for years and was waiting for the ftse to drop below 5,000, but I only partially got involved at that level and sold (and bought back in) a few times taking profit. I had hoped to continue doing that and profiting from the volatility, but the surge above 6,000 caught me out. Now it's just about correcting and balancing my portfolio. But if it rocketed upwards I might consider taking the profit again, likewise if it tanks I will put more in.