Interest Rates - BoE should cut them or the governer should go!

SuperV

Ft.com
"By Andrew Taylor and Norma Cohen
Published: October 15 2008 09:54 | Last updated: October 15 2008 10:09

Total unemployment could reach 2m by the end of this year with the number of jobless rising at the fastest rate for 17 years in the three months to the end of August.
Official figures published on Wednesday showed the total number of jobless rose by 164,000 during the quarter to reach 1.79m. The total number of people in employment fell by 122,000 to 29.41m in the three months to the end of August, the biggest fall since the beginning of 1993."

Mr King should go. He didn't do anything to prevent bubble, he didn't do anything to prevent recession.

SuperV

http://www.ft.com/cms/s/0/fd44b104-9ae3-11dd-a653-000077b07658.html?nclick_check=1

"Growing evidence that the worldwide bank rescue plans have come too late to avert a deep global recession drove down stock markets in Europe and the US on Wednesday."

SuperV

random_fat_bird wrote: »

I'm more likely to believe in the financial knowledge of Mervin King than that of somebody on a forum who's angry. Sorry:)

4 months later, do you still have the same opinion?

_Andy_

Oh dear. The world's most tedious thread lives to see another day.

SuperV

_Andy_ wrote: »

Oh dear. The world's most tedious thread lives to see another day.

Oh dear... ))))

Well - 4 months ago I started this thread asking for Mr King to cut the rate or to resign and save the rest. In the meantime he earned a lot and the rest started to lose their jobs.

http://news.bbc.co.uk/1/hi/business/7672198.stm
"Two million jobless by Christmas, up from the latest figure of 1.79 million, now seems a realistic prediction (it didn't as recently as a month or so ago). "

And then - then they cut a rate by half percent and will probably cut by another half and who knows how much next year.

The worlds most precise thread, what do you think?

p.s.
To help one guy - I will edit this post ))))

Banks 'were close to collapsing' - Mr King!

The UK banking system was closer to collapse earlier this month than at any time since the start of World War I, Mervyn King has warned.

What do you think - is he the right man in the right place? Four months ago he was unaware what was preparing, a month ago didn't know what was going on, now ... I don't believe he knows what to do.

SuperV

"Roger Bootle, managing director of Capital Economics, said: "I don't understand why they are not contemplating a one or two percentage point cut in interest rates. They are very quick to raise borrowing costs but far less daring when it comes to cutting them.
"It's a failure of vision by many of the members. Either they think they are in a university seminar or that this is merely a minor slowdown. In fact, they're facing something which might approach the Great Depression.
"They need to be thinking are more boldly about policy. If they aren't careful, the members of [the MPC] will go down as some of the worst monetary policy-makers in history.""

http://www.telegraph.co.uk/finance/financetopics/recession/3255594/Pound-suffers-worst-fall-in-41-years.html

Mr Marvin King should be fired! In that way the UK will save half a million of pounds annually.

Dylanwing

I think it needs a lot more than just interest rate cuts, and reacting to tabloid headlies (Current Government policy). Government borrowing is too high, and has been hidden by expensive PFI deals. Indirect taxes are too high, especially Council Tax, making it hard for employees to accept pay cuts/ short working. Over zealous H&S and red tape are making a lot of firms struggle almost as much as recession. The benefits system is horribly skewed to helping people who have never worked, but re-produce freely. Immigration has to be looked at, will the NHS and benefits system make us over-attractive? And as things get worse, they will become easy scapegoats. Essentials like utilities, public transport and social housing were all privatised - What a truly awful move that is now proving to be. I can't see Brown/ darling or Cameron/ Osborne being brave enough to tackle the vested interests, it's going to get rough and interesting.....

SuperV

Dylanwing wrote: »

I think it needs a lot more than just interest rate cuts, and reacting to tabloid headlies (Current Government policy). Government borrowing is too high, and has been hidden by expensive PFI deals. Indirect taxes are too high, especially Council Tax, making it hard for employees to accept pay cuts/ short working. Over zealous H&S and red tape are making a lot of firms struggle almost as much as recession. The benefits system is horribly skewed to helping people who have never worked, but re-produce freely. Immigration has to be looked at, will the NHS and benefits system make us over-attractive? And as things get worse, they will become easy scapegoats. Essentials like utilities, public transport and social housing were all privatised - What a truly awful move that is now proving to be. I can't see Brown/ darling or Cameron/ Osborne being brave enough to tackle the vested interests, it's going to get rough and interesting.....

Cut military budget 50+% = £16 billions less.

Cap benefits - that is £160 billions budget, cap housing benefits (at most 3-bedroom apartment, whatever the size of the family is), cap donations - that could bring REALLY a lot, probably between 30-40 billions.

Cap salaries in the public sector. They did great in the boom times, now it is a time to pay back. Cap salaries in NHS - they did great in the boom times, now it is time to pay back. Almost all private companies closed final salary schemes, why should public employees have better conditions?? Who knows how much that could bring - A LOT?!

Less taxation, invest in knowledge, technology, space and marine research! Do something for a change, not just resell bricks!

Dylanwing

Nearly spot on - A lot of military spending does create real jobs, and with times being so turbulent, wisdom would suggest retaining funding on defence of the UK, but getting out of foreign jaunts. With benefits, I would go even further, and phase in one single payment at less that the equivalent of take-home pay for a 35 hour week at minimum wage, but topped up for 6 Months based on NI contributions, to help those forced out of work as they look for a new job. That puts workers and unemployed on an even footing, and makes work far more attractive. Agree on the Public Sector, and losing Government red tape might lose a lot of highly paid non-jobs, allowing Councils/ Government to resource real jobs - After all, the cost of a team of 'City Cleaners' keeping the environment looking good is probably not a lot more than paying people to be unemployed. I'm a Civil Sevant, and even I agree on pensions, the deal we were offered a few years ago was not bad and should have been accepted, as I think that we are going to end up with a lot worse deal soon.
Scrap ID cards would be another big saving, and this Car-Tracking thing that was announced as scrapped, but continues on the quiet. Even today, the suggested solution to traffic is road pricng. They just don't get it do they, we are in the mire, family budgets are stretched - Make Public Transport cheaper, so that car numbers are cut, and people can still afford to travel to work!
One think I overlooked is student debt, that is looking to be another huge time-bomb ready to explode in a few years time.

Dylanwing

And let's not forget about pursuing the wealthy tax dodgers......