Bank of England.....my arse !!

[SWP's back]

The ONLY reason why the BoE base rate has stayed so low for so long is that the property market along with almost every other market that the financial institutions use to make their money has stagnated at best and dropped alarmingly in other areas, an increase in interest rates now would only mean many many more houses repossessed, many many more shops closing and more people out of work, leading back to more repossessed houses.

I'll let you into a little secret banks can make (and lose) money in any market condition including falling markets as well as range bound (stagnated to you) markets, hell they don't even need to worry where the price is going they can just buy or sell volatility or if that doesn't suit they can just buy and sell time. But yeah they're probably thought fuck that far better to be in cohoots with the BoE...

Not simplistic enough!

 

[city diehard]

Monetry policy has got nothing to do with the current fiscal retrenchment taking place by the governemnt, this monetry activism is being utilised in order to create a stimulus to get growth moving (0.1% over 9 months) and because interest rates are at an all time low (0.5%) it couldn't be slacker. This will provide stimulus, but in my opinion the govt deficit reduction plan, with its zelous cuts are creating a weak economy, and due to its fragile nature: economic growth is slowing as a result. This flawed rhetoric of the chancedllor to impose these draconian cuts in governemnt spending and destruction of the public sector, is that if we alter our economic plan (say increase capital spending in a keynsian manner), the international markets will have our balls, which will in turn make borrowing more expenisve. This is absolute bolloks,the markets are more concerned about the sovreign debt crisis in the eurozone. This political manovering by the treasury is halting our recovery, and along with osbourne spouting bile 'that we we were like greece' is harming business and consumer confidance, we could see us slip into a double dip recession. Arsehole.

 

[SWP's back]

Monetry policy has got nothing to do with the current fiscal retrenchment taking place by the governemnt, this monetry activism is being utilised in order to create a stimulus to get growth moving (0.1% over 9 months) and because interest rates are at an all time low (0.5%) it couldn't be slacker. This will provide stimulus, but in my opinion the govt deficit reduction plan, with its zelous cuts are creating a weak economy, and due to its fragile nature: economic growth is slowing as a result. This flawed rhetoric of the chancedllor to impose these draconian cuts in governemnt spending and destruction of the public sector, is that if we alter our economic plan (say increase capital spending in a keynsian manner), the international markets will have our balls, which will in turn make borrowing more expenisve. This is absolute bolloks,the markets are more concerned about the sovreign debt crisis in the eurozone. This political manovering by the treasury is halting our recovery, and along with osbourne spouting bile 'that we we were like greece' is harming business and consumer confidance, we could see us slip into a double dip recession. Arsehole.

A lot of words to say "I'm against the cuts." SWP's back

 

[gordondaviesmoustache]

Monetry policy has got nothing to do with the current fiscal retrenchment taking place by the governemnt, this monetry activism is being utilised in order to create a stimulus to get growth moving (0.1% over 9 months) and because interest rates are at an all time low (0.5%) it couldn't be slacker. This will provide stimulus, but in my opinion the govt deficit reduction plan, with its zelous cuts are creating a weak economy, and due to its fragile nature: economic growth is slowing as a result. This flawed rhetoric of the chancedllor to impose these draconian cuts in governemnt spending and destruction of the public sector, is that if we alter our economic plan (say increase capital spending in a keynsian manner), the international markets will have our balls, which will in turn make borrowing more expenisve. This is absolute bolloks,the markets are more concerned about the sovreign debt crisis in the eurozone. This political manovering by the treasury is halting our recovery, and along with osbourne spouting bile 'that we we were like greece' is harming business and consumer confidance, we could see us slip into a double dip recession. Arsehole.

Keynsian economic theory espouses that you should spend your way out of a recession, but have a surplus during times of growth.

Where were all these 'Keynsian' disciples when Labour were running up an eye-watering deficit during the longest period of economic growth on record?

I can't understand why they weren't kicking up a fuss at such a betrayal of those principles at the time.

Strange, especially given the voracity at which they seem to support his theories now...

 

[Damocles]

Quantative easing to solve the money crisis is a great idea. We have too much debt, so lets create some debt in order to stop the debt. Makes perfect sense.

 

[ElanJo]

"The whole of economics can be reduced to a single lesson, and that lesson can be
reduced to a single sentence. The art of economics consists in looking not merely
at the immediate but the longer effects of any act or policy; it consists in tracing
the consequences of that policy not merely for one group but for all groups."
Henry Hazlitt

Economics in One Lesson
<a class="postlink" href="http://www.hacer.org/pdf/Hazlitt00.pdf" onclick="window.open(this.href);return false;">http://www.hacer.org/pdf/Hazlitt00.pdf</a>

 

[SWP's back]

Quantative easing to solve the money crisis is a great idea. We have too much debt, so lets create some debt in order to stop the debt. Makes perfect sense.

Idiotic comment by your high standards Damocles, (that may be unfair but I hold you in high esteem).

QE isn't about solving the "money crisis" (whatever that is) either.

It's about freeing up the money markets to stimulate growth in the economy via SME's.<br /><br />-- Sat Oct 08, 2011 7:24 pm --<br /><br />

"The whole of economics can be reduced to a single lesson, and that lesson can be
reduced to a single sentence. The art of economics consists in looking not merely
at the immediate but the longer effects of any act or policy; it consists in tracing
the consequences of that policy not merely for one group but for all groups."
Henry Hazlitt

Economics in One Lesson
<a class="postlink" href="http://www.hacer.org/pdf/Hazlitt00.pdf" onclick="window.open(this.href);return false;">http://www.hacer.org/pdf/Hazlitt00.pdf</a>

Good quote.

 

[city diehard]

Monetry policy has got nothing to do with the current fiscal retrenchment taking place by the governemnt, this monetry activism is being utilised in order to create a stimulus to get growth moving (0.1% over 9 months) and because interest rates are at an all time low (0.5%) it couldn't be slacker. This will provide stimulus, but in my opinion the govt deficit reduction plan, with its zelous cuts are creating a weak economy, and due to its fragile nature: economic growth is slowing as a result. This flawed rhetoric of the chancedllor to impose these draconian cuts in governemnt spending and destruction of the public sector, is that if we alter our economic plan (say increase capital spending in a keynsian manner), the international markets will have our balls, which will in turn make borrowing more expenisve. This is absolute bolloks,the markets are more concerned about the sovreign debt crisis in the eurozone. This political manovering by the treasury is halting our recovery, and along with osbourne spouting bile 'that we we were like greece' is harming business and consumer confidance, we could see us slip into a double dip recession. Arsehole.

A lot of words to say "I'm against the cuts." SWP's back

I'm not against the cuts, we need to recude our budget deficit, but not at the pace that it is currently at.

Monetry policy has got nothing to do with the current fiscal retrenchment taking place by the governemnt, this monetry activism is being utilised in order to create a stimulus to get growth moving (0.1% over 9 months) and because interest rates are at an all time low (0.5%) it couldn't be slacker. This will provide stimulus, but in my opinion the govt deficit reduction plan, with its zelous cuts are creating a weak economy, and due to its fragile nature: economic growth is slowing as a result. This flawed rhetoric of the chancedllor to impose these draconian cuts in governemnt spending and destruction of the public sector, is that if we alter our economic plan (say increase capital spending in a keynsian manner), the international markets will have our balls, which will in turn make borrowing more expenisve. This is absolute bolloks,the markets are more concerned about the sovreign debt crisis in the eurozone. This political manovering by the treasury is halting our recovery, and along with osbourne spouting bile 'that we we were like greece' is harming business and consumer confidance, we could see us slip into a double dip recession. Arsehole.

Keynsian economic theory espouses that you should spend your way out of a recession, but have a surplus during times of growth.

Where were all these 'Keynsian' disciples when Labour were running up an eye-watering deficit during the longest period of economic growth on record?

I can't understand why they weren't kicking up a fuss at such a betrayal of those principles at the time.

Strange, especially given the voracity at which they seem to support his theories now...

So I take it your one of these 'We inherited this mess from labour.' Governments can run budget deficits, as long as you can honour your debts. The only country who has consistently had a budget surplus in Europe is Norway. What get's me more is the Tories before in 2007 repeatedly said their party was committed to Labour's spending plan. I'm not a deficit denier, but it wasn’t labour's overspending is was a global financial crisis, and due to our over dependence services particularly the banking sector, we were susceptible the most.

 

[SWP's back]

Germany is reliant (over 70%) on service sector but didn't suffer like we did, hell I posted a few pages back about it. We were in shit with or without the "credit crunch". I'm not a Tory or socialist, just a realist with a clue.

You should try it.

 

[city diehard]

Germany is reliant (over 70%) on service sector but didn't suffer like we did, hell I posted a few pages back about it. We were in shit with or without the "credit crunch". I'm not a Tory or socialist, just a realist with a clue.

You should try it.

Well you need to delve deeper into sevices our banking sector is larger, and the key to there strong recovery as opposed tou anemic growth seen, is trade in concern of hi tech manafacturing which we unfortunatly dont have, and they have been able to garner a vast amount of trade from the emerging economies as a result(BRICS etc.)