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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.
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.
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.
So what do you "Red Coats" think? no big deal? or another sign of the impending financial collapse?
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.
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.
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.
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.
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."
Most of the US debt is owned by the citizen