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Bank of England rates could rise more than thought
Comments
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Thrugelmir wrote: »Savings rates are at 20 year lows. Companies are flush with cash. Thanks to long term low borrowing rates. QE and other supportive measures have prevented a financial meltdown. In the process they have created a topsy turvy situation. That now needs to be corrected.
Globalisation and technology has led to historically high inequality of income, low interest rates have boosted asset prices which has resulted in inequality of wealth.
Those with the wealth, companies and individuals, choose to save rather than consume or invest. Meanwhile the havenots see the lifestyle of the haves and very cheap borrowing (with all this money looking for a home) and borrow to spend and consume. Which remains unsustainable....I think....0 -
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Those with the wealth, companies and individuals, choose to save rather than consume or invest. ...
Savings equals investment. Economics 101.
It's just as well some people can save otherwise there would be no investment. And somebody has to have the money to buy all those government bonds and fund those deficits.:)0 -
Thrugelmir wrote: »Savings rates are at 20 year lows. Companies are flush with cash. Thanks to long term low borrowing rates. QE and other supportive measures have prevented a financial meltdown. In the process they have created a topsy turvy situation. That now needs to be corrected.
Savings arent at 20 year lows at all. They're higher now than theyve been for past 2 or 3 years0 -
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What's the problem? The last 10 year averaged inflation rate has been 2.8% which is pretty spot on for the 2-3% target and the economy is in good nick we have full employment the 6+ month unemployment rate is close to 1%
You do realise that a substantial proportion of the tax you pay is going towards ''in work'' benefits such as Tax Credits, Housing Benefit etc, in this supposed healthy economy with full employment?0 -
Thrugelmir wrote: »Savings rates, i.e. interest, not savings per se.
I know. Thats what i was referring to0 -
Thrugelmir wrote: »Early as May, seems possible.
Seems possible the correction back to normal could start in may, but rates won't be back to normal until 2019
This will be very bad for property pricesNothing has been fixed since 2008, it was just pushed into the future0 -
Seems possible the correction back to normal could start in may, but rates won't be back to normal until 2019
This will be very bad for property prices
Even if I was being very hawkish on rates I don't see them being above 2% by the end of 2019, I wouldn't necessarily call that a return to normal.
With hints of some softer economic data recently I'm not sure I see rates reaching that 2% by then either0 -
What do you mean by normal? Mortgage rates more or less are normal.0
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You do realise that a substantial proportion of the tax you pay is going towards ''in work'' benefits such as Tax Credits, Housing Benefit etc, in this supposed healthy economy with full employment?
Yes there are in work benefits not sure I'd call it substantial relative to other things like pensions and the NHS etc. Some of it will also be fake don't forget about 10% of the economy is the black/grey market.
In work benefits are a good tool they allow targeted support so I wouldn't get rid of them
Personally I wouldn't mind a higher min wage and a higher 0% tax threshold.
The Tories have been going that way for the last 5 years you can't just jump straight away from £5ph to £10ph
I'd like to see the min wage increased 5% above inflation each year until it gets to £11ph (in today's money). It would take about 7 years to get there. Would take two people working full time on min wage to a household income of £44,000 which is quite good and remember most earn more than min wage
But again I wouldn't remove in work tax credits and benefits they are a useful tool for the outliers.
You can't set min wage or employment ruels and regs so that a man with 15 kids working as a cleaner alearns a sum to house and feed 15 kids.0
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