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

a reply to: IndieA

The issue I see with your logic is that the reason why the federal reserve exists is because it removes the federal government from complete control over the money supply. That's how it works, it's as decentralized as you can get within the confines of regulation. Congress isn't really the "fed" its representatives from different states and districts.

You'll never escape a decentralized currency tho, unless you start to decentralize other aspects of society, ancient Egypt comes to mind, the average person back then had control over their money supply, grain, and only weather affected their wealth really.

a reply to: ufoorbhunter

Taken directly from the Adolf Hitler/Jozef Stalin et al playbook.

The idiots have screwed themselves with over a decade of ZIRP and QE. Economy is now a basket case with the BoEs usual tools mitigated. So they're going to keep raising rates until inflation comes down in order to avoid the worst of all outcomes - the uk turning into Argentina. To do this triggering a deflationary deep recession is not off the table; whatever it takes is imo what those with hands on the levers are thinking.

Anyone thinking we're riding it out with a soft landing is probably sadly mistaken and are not anticipating high unemployment: the one thing that always tips the scales from soft to hard landing.

I ask, think a year from now: To cut inflation people need to stop spending first. After that inflation figures (hopefully) fall (though there's other macro pressures that are independent of consumer spending).
When/if inflation does finally fall significantly enough there's quite a lag between this happening, then that data being accumulated, understood and reported, then BoE cutting rates, then lenders cutting rates and retailers cutting prices.

By the time that's all happened people will not then suddenly start spending again because they have now been severely impoverished. Consumer spending will remain rock bottom for some time. This means poor sales, which in turn means layoffs in every effected arena from production, transportation and retail to advertising.

That could easily equal 1990's unemployment figures and this is what makes it very, very bad.

Repossessions and homelessness will then be the headlines. Imo i think the gov will pull an emergency policy and ease building regulations to quickly turn the all the office space now unused due to WFH in residential: 'Nightingale homes'. Standards will suck and they'll say its a temporary emergency shelter measure, but of course it'll be permanent. 21st century slums!

Naturally i pray this is avoided, or at least the worst is. But it's currently looking unavoidable imho

originally posted by: ufoorbhunter

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.

Can you give the same speech to Russia and China too, thanks in advance...

originally posted by: McGinty

That could easily equal 1990's unemployment figures and this is what makes it very, very bad.

One issue in America today is we can't find people to fill the jobs we have open. Everyone wants that 100k+ job while not having the skills or experience to get it, so they just don't work now with how the whole shutdown has allowed people to just stay home and live off a little Government income. When we say that unemployment is 3.5% that is only people actually looking for a job. The number of people not working is very high, and it's by choice. I don't think I see a single business that doesn't have a Help Wanted sign. People just do not want to flip burgers or other types of jobs anymore even when they pay 30k+ a year.

a reply to: Xtrozero

MSN talks about the same thing happening in the UK. Too many jobs a high class problem for a nation to have. But I think that can easily flip to the low class problem of no jobs available if consumers stop spending for a prolonged period. Hoping not!

a reply to: McGinty

Too many jobs a high class problem for a nation to have.

Too many jobs....but the vast majority pay # wages.
Or not enough people qualified to do the useful half-decent paying jobs.....because we'd rather send people to University to study wank and irrelevant degrees like Interpretations of Modern Dance, Liberal Arts etc rather than encouraging people to become Bricklayers, Welders, Engineers etc.

a reply to: strongfp

Watch the cartoon I posted. It's only 30 minutes long.

It's important to understand the history of money if you want to understand private central banking.

Coincidence's abound

MONEY


Military
Why Is Washington Dc Not Part Of The United States?

Washington, D.C., formally the District of Columbia is also known as D.C. or Washington. It is the capital city of the United States of America, but did you know it is not owned by America? The district is not a part of any U.S. state. In 1846, Congress returned the land originally ceded by Virginia.

originally posted by: McGinty

MSN talks about the same thing happening in the UK. Too many jobs a high class problem for a nation to have. But I think that can easily flip to the low class problem of no jobs available if consumers stop spending for a prolonged period. Hoping not!

We could go that way too, need to just look back to like 2008 - 2009 as an example as to what it might look like.

a reply to: IndieA

I bit the bullet and dove into the book the history of debt by David greaber, I fully understand the function of money and central banking... the video only touches the surface of the function of money. But, money is extremely simple at the same time, it's strange, it's how we all solve debts that make it complicated.

originally posted by: Xtrozero

originally posted by: ufoorbhunter

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.

Can you give the same speech to Russia and China too, thanks in advance...

You are much more than welcome Xtro and I do appreciate your thanks. While at the same time I do appreciate and see where you are coming from on Russia, China front. They all want a piece if the cake. Don't we all?

a reply to: putnam6

Print More Pound Notes . It Works here..............." Sarcasm "

a reply to: Freeborn

I’m sure you’re not wrong about the unfilled jobs being U.K. unfilled for a good reason. But I don’t know the the details of those unfilled jobs and was thinking along the lines of how it’s spun in the msn rather than the reality in the context of that reply.

We’re being told not to worry about unemployment because of all the jobs. But I agree this is erroneous and part of an msn effort to maintain higher house prices by hiding realities from sellers (why? Because imo many of the msn management want to keep their own house prices high). If people knew how close we really are to the edge - to unemployment on a 1990 scale - they’d be selling up fast as they can - house prices would crash very quickly.

I believe we’re close to that because of the itv CEO telling the press last week that ad revenue has fallen off a cliff. That’s an early indicator layoffs incoming. If you think you won’t sell stuff you pull costly ad budgets; then you slow products, laying off workers and transportation isn’t needed, then retail cut jobs. Just my opinion.

As for irrelevant degrees… I’m an arts graduate. Everyone told me at the time it was pointless - no job at the end. Well, they’re all doing dead end crap and I’m doing something I enjoy, so not that pointless.

And besides, as a dyslexic my exam results were far below my understanding potential and would’ve left me without any avenues to develop that potential had it not been for the arts and their faculties within higher education.

So gawd bless’em and long may their existence annoy those who believe society does not need culture. In that sad world the only culture would be provided by the wealthy elites who could afford to waste time on ‘irrelevant wank’ and your entertainment would be 100% Downton crappy Abbey.

Be grateful that the great unwashed like you and me are able to peruse the arts, or there’d probably have been no Bowie, no Queen, nor many other musicians, writers, comedians, satirists, filmmakers and artists who had a chance to find their way on arts degrees

a reply to: ufoorbhunter

Someone's got to meddle with the world. Better it's us than them.

originally posted by: Degenerabalus
a reply to: ufoorbhunter

Someone's got to meddle with the world. Better it's us than them.

Totally agree mate it just how far the meddling goes that freaks me out in addition to who is playing the puppeteer