Bank of England trending, raised interest rates any thoughts from across the pond

So what do you "Red Coats" think? no big deal? or another sign of the impending financial collapse? Comments seem to be a bit negative, and even a bit of pissing on the Labour Party. Which seems rare in itself


twitter.com...

We are starting to see some promising signs. Inflation has begun to fall, the economy is growing, and unemployment is low. But, inflation is still too high. We need to take action to make it fall further.

Higher interest rates make it more expensive to borrow money. Higher borrowing costs are difficult for many people - but if we do not raise rates, high inflation will last longer and make things worse.

enjoyed this quote in the comments..

Tomasz Zatoń
@Tomasz_Zaton
Will United Kingdom rating be downgraded next?

It could happen because:

🔹worst inflation dynamics in the developed world

🔹 25% of UK debt is linked to inflation, which can create an inflationary death spiral

🔹economy based on housing bubble that started crumbling

As we wrote in our monthly Global Inflation publication

dragon1.substack.com...

UK recently announced changes to its carbon pricing policies to incentivise more energy production.

They do realize energy is life and inflation is a major threat.

Hiking rates is not enough for supply side driven inflation.

British Pound has rallied a lot since the crisis last fall.

It looks very overvalued to me.

What do you think?

Ian Tresman
@iantresman
·
2h
When last year's energy price rises are no longer factored into the last 12 months' calculations, inflation will come down automatically.

Families will lose homes over increased mortgage rates.

The only people to benefit are bankers. We are living in Dickensian Britain.

a reply to: putnam6

#s.

No imminent financial crash....just more of same old same old.
Protecting their already obscene profit margins at everyone else's expense.

"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered.... I believe that banking institutions are more dangerous to our liberties than standing armies.... The issuing power should be taken from the banks and restored to the people, to whom it properly belongs."

What do we think? Erm....................

The English speaking nations namely UK and USA stop meddling in the affairs of other countries, stop de-stabilising them, stop backing coups, stop sending training, military weaponry, intelligence and co-ordination and funding neo colonial wars, whether it's the current neo colonial war in the land of the Slavs, or in the land of the Arabs, or the land of the afghans, or whoever they have their sights on next. Without meddling in the affairs of eastern Europe there wouldn't be the blowback of escalating food and utility prices fueling inflation and the reactionary measures of increasing interest rates by TPTB.

a reply to: Freeborn

Banks lowering inflation hurts profit margins. It causes people to spend less but work more and save or pay down debts. The money that would have caused more inflation on people buying useless consumerist garbage is being subtly hinted to the consumer to use the money they have a little more wisely.

a reply to: strongfp

Of course, its all the man in the streets fault.
They get squeezed and the bankers/mortgage maintain their obscene profits.

a reply to: Freeborn

Ok, where's the average man going to get their money from? Central banks don't profit like a company or corporation... they dictate money supplies.

a reply to: strongfp

Smoke in mirrors.
How do they make a profit?

a reply to: Freeborn

Who is making profits?

When central banks raise interest rates profits drop for everyone because tthe consumer isn't spending as much. When interest rates drop profits start to go up

During covid we saw these mechanics in action hence why inflation went off the wall, because when governments gave the OK to print billions to keep people's livelihoods intact they expected people to use it for food, rent, debts, etc but we didn't see that, and the massive profits corporations made in a reflection of that.

originally posted by: strongfp
a reply to: Freeborn

Ok, where's the average man going to get their money from? Central banks don't profit like a company or corporation... they dictate money supplies.

Private central banks get to create new money out of thin air. If that's not profit, I don't know what is.

Furthermore, private central banks loan out that money out on a fractional reserve biases, further profiting.

Most of the US debt is owed directly to the Federal Reserve Bank, which is a private central bank, and not a direct part of the US government.

a reply to: putnam6

So what do you "Red Coats" think? no big deal? or another sign of the impending financial collapse?

I remember interest rates being around 15% in the 80s , seems we got through that so I think this is just a blip fuelled by outside factors , the general opinion is this will likely be the last rise before rates start to come down again nest year.

No doubt there will be a cut before the next election.

a reply to: IndieA

Most of the US debt is owned by the citizen, not the federal reserve, and the federal reserve is only "private" so they can get around the constitution, otherwise it's heavily regulated by the government, it can't print any fiat unless congress says so.

Anyways, the central bank of England isn't privately owned, it's government controlled.

Neither banks profit, as in they sell a commodity or service at a surplus over the amount it's worth and keep the surplus to do whatever they want.

originally posted by: gortex
a reply to: putnam6

So what do you "Red Coats" think? no big deal? or another sign of the impending financial collapse?

I remember interest rates being around 15% in the 80s , seems we got through that so I think this is just a blip fuelled by outside factors , the general opinion is this will likely be the last rise before rates start to come down again nest year.

No doubt there will be a cut before the next election.

I would be okay with a 15% interest rate if I could buy a nice 3 or 4 bedroom home for less than $100,000, like people used to be able to in the 80's.

originally posted by: strongfp
a reply to: IndieA

Most of the US debt is owned by the citizen, not the federal reserve, and the federal reserve is only "private" so they can get around the constitution, otherwise it's heavily regulated by the government, it can't print any fiat unless congress says so.

Anyways, the central bank of England isn't privately owned, it's government controlled.

Neither banks profit, as in they sell a commodity or service at a surplus over the amount it's worth and keep the surplus to do whatever they want.

Bank of England

Interesting.

We are a public body that must answer to the people of the UK through Parliament.

We started over 300 years ago as a private bank with shareholders. In 1946, the Government nationalised us because of our central importance to the UK’s economy.

In 1997, the Government granted us independence in some areas of our work because they wanted our decisions to be free from party-political influence.

How we’re funded Although we are a public body, we do not get a budget from the UK Treasury. Instead, we generate the funds we need for our work by:

investing the money banks have to hold with us (this is called the 'Cash Ratio Deposit scheme')
charging the firms we regulate a fee providing banking services to our customers, who include overseas central banks
charging for the cost of producing banknotes
charging a management fee for services we provide to government agencies
investing the capital we have built up over 300 years

We generate more income than we spend, so each year we contribute millions of pounds to the UK Treasury.

a reply to: strongfp

Most of the US debt is owned by the citizen

This is not at true based on my understandings.

Care to support this claim with a source or other evidence?

a reply to: ufoorbhunter

its a double win though , they make money from the war and they make money from all the inflated costs of everything ,
they rake in our money while we all suffer

#S

nothing but utter #s

Here's ChatGPT's answer:

As of my last update in September 2021, the ownership of the U.S. national debt was distributed among various entities, both domestic and foreign. Here are some of the major holders: U.S. Government Agencies: Some of the largest holders of the U.S. national debt are government agencies such as the Social Security Administration and various federal pension funds. Foreign Governments and Investors: Foreign governments and investors, including countries like China and Japan, also hold a significant portion of the U.S. debt. They do this by purchasing U.S. Treasury securities as a way to invest and store their excess reserves. U.S. Individuals and Institutions: Many U.S. citizens and domestic institutions, such as banks, insurance companies, and mutual funds, hold U.S. debt as part of their investment portfolios. Federal Reserve: The U.S. Federal Reserve also holds a portion of the U.S. national debt as part of its monetary policy operations.

When I asked what percentage was held by the Federal Reserve, I got:

As of my last update in September 2021, the Federal Reserve held approximately 14% of the total U.S. national debt. The Federal Reserve primarily holds U.S. Treasury securities as part of its monetary policy operations. These holdings are often referred to as "Federal Reserve holdings of U.S. Treasury securities."

a reply to: IndieA

Central and modern banking is one of the most complicated subjects I only know maybe 10% of how it truly functions, but I do know it's not privately owed like Jerome Powell owns the fed or something, they're like corporations, autonomous entities that can be publicly owed and have to abide by constitutional laws and such.

a reply to: IndieA

Hmmm it's complicated but the public by proxy owns most of the debt, through bonds and such...

www.pgpf.org...

a reply to: strongfp

Most of the US debt is owned by the citizen

Most US citizens are in debt.

Total personal debt in the US, averages out to $73,443 per citizen.

usdebtclock.org