What an idiot!!

Dan:_4

Already had the email from my building society with the reduced monthly mortgage payment from 1st Sep. I've just booked 4 night family holiday in Cornwall during October half term to celebrate, and to put something back into the economy.

DividedNation

cells wrote: »

all well and good you can believe anything you want and postulate this and that theory but how do you explain the current economic situation where in the UK long term (12 months or more) unemployment is only 1%?

somethings being done right

That is down to figure fiddling including sanctions and workfare slavery.
Unemployment is over 5%.


But anyhow if it is so low why cut interest rates?

Export orders will rise due to the low pound reducing unemployment anyway.

The policy is nuts.

Pennysmakepounds

I love threads like this.

Another 'BREXIT' voter with buyers remorse.

All you BREXITEERS made your bed and OURS so now quietly lie in them and sulk.

The truth is all those that had wealth before BREXIT, will continue to have wealth post BREXIT.

All those that were poor before will just continue to be poor and probably get ever poorer as the country sinks into another depression.

As the saying goes - Money LOVES Money.

michaels

Filo25 wrote: »

The concern thought for the UK is that the decent (but not outstanding) growth seen over the last few years has only been able to be achieved by having monetary policy pretty close to as loose as it can be.

We now find ourselves in the situation where we have a self incflicted slowdown starting in the economy, when we have no real flexibility to provide much more stimulus through monetary policy.

Equally unfortunately it is also happening at a time when we still have not managed to fully get rid of the large structural deficit on government spending, so even a significant loosening of fiscal policy isn't quite as straightforward as it normally would be.

I suspect there will have to be some "creative" policy suggestions over the coming months to address the developing situation

Nominal inteest rates falling and inflation increasing = lower nominal rates = monetary easing = just what the doctor ordered if the economy is weakening.

IN 2012/13 the higher inflation with low nominal interest rates was helping out nicely with inflating away the national debt, the recent low inflation has prevented this from happening. If we don't inflate away the valeu of the debt then we will have to stop increasing it via cutting the deficit which it seems is more pain than the economy (the politicians) can take.

Graham_Devon

Filo25 wrote: »

Sterling was about $1.50 after the polls closed on Brexit night.

It was about $1.33 before the BoE cut today,

It's at about $1.31 today the last time I looked.

I suppose the point I'm making is that you can't really blame Carney for the majority of the fall in Sterling's value since we voted for Brexit.

The collapse in the value of Sterling is the one thing that pretty much everyone agreed would be an inevitable response of Brexit.

Carney made two statements between the brexit vote and the BOE cut today. Both statements were quite damaging to our economy due to the dampening nature of his statements.

Those statements combined saw the value of sterling fall nearly double that of the result of the brexit vote.

You can see it on the charts and when he made his statements vs the results from the brexit vote.

While it's very convenient to blame it all on the brexit vote, the charts don't lie. The big falls since the brexit vote have come directly after Carneys statements.

DividedNation

Filo25 wrote: »

The concern thought for the UK is that the decent (but not outstanding) growth seen over the last few years has only been able to be achieved by having monetary policy pretty close to as loose as it can be.

We now find ourselves in the situation where we have a self incflicted slowdown starting in the economy, when we have no real flexibility to provide much more stimulus through monetary policy.

Equally unfortunately it is also happening at a time when we still have not managed to fully get rid of the large structural deficit on government spending, so even a significant loosening of fiscal policy isn't quite as straightforward as it normally would be.

I suspect there will have to be some "creative" policy suggestions over the coming months to address the developing situation

Problem is that all the measure taken so far have been inequality creating measures, stealing money from those who desperately need it and handing it out to the idle rich to !!!! away in whatever way they can find to waste it, ie property bubble, cocaine prostitutes, foreign holidays

That is not exactly a great economic plan is it?

It is a recipe for disaster and disaster is where we are at.


We really need a wealth tax to take 10% off the 1% and give it back to the bottom 50%

That would provide a great economic boost as the money would be spent and taxed rather than disappear into a tax haven.

Filo25

I don't doubt the big falls since Brexit have come after Carney's statements, basically because he was pointing out that policy would need to be loosened given the weakness they were already starting to see in the broader economy.

They're all dwarfed of course by the big fall on the night of Brexit itself from $1.50 to the low-mid $1.30s

Jack_Johnson_the_acorn

Graham_Devon wrote: »

Carney made two statements between the brexit vote and the BOE cut today. Both statements were quite damaging to our economy due to the dampening nature of his statements.

Those statements combined saw the value of sterling fall nearly double that of the result of the brexit vote.

You can see it on the charts and when he made his statements vs the results from the brexit vote.

While it's very convenient to blame it all on the brexit vote, the charts don't lie. The big falls since the brexit vote have come directly after Carneys statements.

So he was wrong to inform the nations voters on the effects of brexit? He can't win either way.

mayonnaise

Graham_Devon wrote: »

Carney made two statements between the brexit vote and the BOE cut today. Both statements were quite damaging to our economy due to the dampening nature of his statements.

Those statements combined saw the value of sterling fall nearly double that of the result of the brexit vote.

Rubbish.
The pound dropped from $1.49 to $1.32 right after brexit.
It's been hovering between $1.29 and $1.34 ever since.

Anyway, here's a blast from the past.

http://news.sky.com/story/leave-rejects-brexit-pound-plunge-warning-10320341

DividedNation

Pennysmakepounds wrote: »

I love threads like this.

Another 'BREXIT' voter with buyers remorse.

All you BREXITEERS made your bed and OURS so now quietly lie in them and sulk.

The truth is all those that had wealth before BREXIT, will continue to have wealth post BREXIT.

All those that were poor before will just continue to be poor and probably get ever poorer as the country sinks into another depression.

As the saying goes - Money LOVES Money.

It is nothing to do with Brexit, inequality was increasing long before that, it is the policy of the ruling elite to increase inequality. Something drastic is need to change that, WWII did the trick in the 1930's.

Anyhow the pound is back were it was last week, cutting rates was stupid, Carney did it to prove himself right, he is deliberately creating the problems he predicted so that for once his prediction will be correct.

Mark Carney, the Governor of the Bank of England, is a clever and accomplished man (his words not mine!!). But as an economic forecaster, he has failed to impress. His poor record of anticipating economic trends was underlined by official figures showing that inflation in December was 0.2 per cent. Yes, that was an 11 month high, but it is still so close to zero as to make a mockery of the Governor’s assurance last year that Britain’s experience of low and even negative inflation would be “temporary”

Truth is he has no idea what he is doing, he does not understand the economy at all. I knew his inflation predictions would be wrong, why didn't he?

Because he is useless and should be sacked.

He is spending billions to destroy the economy.

What is so "clever" about that?

And why did he cut interest rates when both the ft100 and ft250 were well above pre-Brexit levels? And unemployment at historically low levels?


He has done the opposite of conventional wisdom, you do not cut rates when the market is booming, what he should have done is increased rates if anything to boost the pound, mind you I expect the BoE has been selling pounds like crazy to lower the value, and of course the QE will add to that.

He has everything 100% wrong.