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Interest Rates - BoE should cut them or the governer should go!
Comments
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Yes I agree this thread is getting silly!
Why? You don't like facts?
Economy at 60-year low, says Darling. And it will get worse
Britain is facing "arguably the worst" economic downturn in 60 years which will be "more profound and long-lasting" than people had expected, Alistair Darling, the chancellor, has told the Guardian today.
(http://www.guardian.co.uk/politics/2008/aug/30/economy.alistairdarling)
Cut the rate!0 -
Why? You don't like facts?
Economy at 60-year low, says Darling. And it will get worse
Britain is facing "arguably the worst" economic downturn in 60 years which will be "more profound and long-lasting" than people had expected, Alistair Darling, the chancellor, has told the Guardian today.
(http://www.guardian.co.uk/politics/2008/aug/30/economy.alistairdarling)
Cut the rate!
Yes and it's got this bad because rates have been too low and people have gorged them self on cheap credit thinking "i won't have to work to pay it off, my house will do the work for me!" At this point the rates need to go up to control inflation not down! I wouldn't listen to Blanchflolwer he only knows how to say "cut the rates", it's all he ever says every time there is a meeting.
If you lower rates you are just going to drag the problem out...0 -
Last November we were doing fine - "economy strong enough to ride out the storms caused by the Mercans" - then they cut rates by 0.75%..... DOH!0
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Don't read it...
If you learnt how to use the edit button this thread would have died out long ago, as it is you spend weeks on end just replying to yourself and I'm getting fed up of seeing it at the top of the forum all the time when evidently nobody else cares that much.I've given up trying to get my signature to work with the new rules, if nobody knows what the rules are what hope do we have?0 -
What an amazing analagy. It makes no sense what so ever.One analogy – if you are at the peak of a mountain, you breathe less air?
Oil price is air, interest rate is the amount of air you breathe – the bigger interest rate, the less air you get. If you don’t have enough oxygen, you fall down very fast!
I've made a better one.One analogy - if you slip on ice you go further than if it's tarmac. Oil is like water, but you have to freeze it to make ice. The temperature is like the interest rates; the lower it goes the more quickly it melts when it heats up. So when rates are high (low temperature) the less heat you think you need and you end up breathing more cold air which makes you fall over.Happy chappy0 -
Yes and it's got this bad because rates have been too low and people have gorged them self on cheap credit thinking "i won't have to work to pay it off, my house will do the work for me!"
That is where we agree if you remember...At this point the rates need to go up to control inflation not down! I wouldn't listen to Blanchflolwer he only knows how to say "cut the rates", it's all he ever says every time there is a meeting.
If you lower rates you are just going to drag the problem out...
No. That is where we disagree. If the rate is not cut, the economy will pass the tipping point as they like to say for ice melting.
Look at Japan. You cure for its problems is to increase rate and kill economy? Cheap labour will help
)))))) 0 -
If you learnt how to use the edit button this thread would have died out long ago, as it is you spend weeks on end just replying to yourself and I'm getting fed up of seeing it at the top of the forum all the time when evidently nobody else cares that much.
Lame excuse, sorry. Don't read it.
As I said at the beginning, my goal is to cut a rate. I want to prove that cutting the rate will benefit economy and not what is going on at the moment.
I believe that there is enough evidence to say that BoE Monetary Committee got things wrong in the past (too low rate as the real inflation (British Caused Core Inflation) was covered by cheap imports.
I believe they again don't get it right and that there are too many evidences that if they stay in control that they will kill the economy.0 -
tomstickland wrote: »Originally Posted by SuperV
One analogy – if you are at the peak of a mountain, you breathe less air?
Oil price is air, interest rate is the amount of air you breathe – the bigger interest rate, the less air you get. If you don’t have enough oxygen, you fall down very fast!
What an amazing analagy. It makes no sense what so ever.
Well, for people that only know to repeat mantras supplied by journalists - it doesn't.tomstickland wrote: »I've made a better one.
Quote:
One analogy - if you slip on ice you go further than if it's tarmac. Oil is like water, but you have to freeze it to make ice. The temperature is like the interest rates; the lower it goes the more quickly it melts when it heats up. So when rates are high (low temperature) the less heat you think you need and you end up breathing more cold air which makes you fall over.
It may be true in an economy that doesn't depend on external economy as much as the UK's economy today.
At the present the UK economy is already suffocated by high inflation imported because of the high price of OIL and no more cheap almost everything else.
And you want to increase interest rate to suffocate it even more?))))))))))))) Well, go through the thread and read articles by many other economist that now cry for rate cut. Then read again top quote - British economy is out of air. Then argue for cut increase.
Before that please check American economy - they cut a rate significantly and dollar increased its value from 2 to 1.83 US$ for 1UK£. Probably in the USA are complete bonkers as they don't know what they do?
Taking into account only that fact - that sterling is worth 7% less against the dollar in one week will increase inflation due to higher in pounds prices of oil and gas.
So keep the rate as it is or increase it and the inflation will go up. Kill the economy, sterling will be in free fall and that will increase inflation again.0 -
You've just made the last 4 posts, there is an edit button for a reason.I've given up trying to get my signature to work with the new rules, if nobody knows what the rules are what hope do we have?0
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