Bank of England Madness

[melthebell]

Its not a matter that the action the bank takes is totally bad, it may be good in the short term, and it may be good for the wealthy.

I think the financial experts are split on whether QE works, but it doesnt work for me.

whether it works or not, youve got some of the "worlds" leading financial experts making a decision.

then like everything on this forum, youve got plenty of no marks who know better

[El Cid]

whether it works or not, youve got some of the "worlds" leading financial experts making a decision.

then like everything on this forum, youve got plenty of no marks who know better

 

I thought you might reply with evidence that QE carries support from more than 50% leading financial experts?

[spilldig]

You mean encourage? They also discourage saving, which means more spending, which means the economy turns over better.

 

High interest rates mean that existing debts get worse and/or harder to service and saving is encouraged which reduces spending, which harms the economy.

 

---------- Post added 04-08-2016 at 11:56 ----------

 

Nobody makes you put money in the bank...

 

Interest rates should be set a couple of % above the inflation rate otherwise it is robbing from people who have saved money and leading people into debt when they get into difficulty by spending too much. I think it is highly irresponsible to live hand to mouth with nothing set aside for emergencies.

Edited August 4, 2016 by spilldig

[mossdog]

whether it works or not, youve got some of the "worlds" leading financial experts making a decision.

then like everything on this forum, youve got plenty of no marks who know better

........you might eventually learn to view leading financial experts with more than grain of caution and suspicion!

I speak from experience as many have!

[El Cid]

In February 2013 "Mervyn King argued further QE was needed(UK) to prevent 'potentially lasting destruction of productive capacity and increases in unemployment'

 

But in Jan 2015 King said "We have had the biggest monetary stimulus that the world must have ever seen, and we still have not solved the problem of weak demand. The idea that monetary stimulus after six years ... is the answer doesn't seem (right) to me,"

[ANGELFIRE1]

If we get into negative interest rates, they are going to start taking money off the savers. How unfair is that? Just State sanctioned theft.

 

This is after 7 years of the Tories being in charge and telling us how well we're doing. It's all hogwash. We're in a worse position now than we were in the 2008 crash.

And another mega crash is on the way.

 

 

Lets have a snap election and all vote Liebour and bankrupt the Country all together.

 

Angel1.

[apelike]

to say that today has nothing to do with Brexit and it's just us Remainers moaning is frankly silly.

 

PMI before and after Brexit

 

You only have to look at the PMI survey results (above) taken before and after the referendum to see the immediate impact Brexit has had on our economy. Any figure above 50 indicates a growing industry sector, any figure below it indicates a contracting industry sector.

 

But that was hardly surprising news as it was always realised that brexit would have some short term immediate effect. What is not pointed out is how the PMI changes over time and generally bounces up and down like a yo-yo. It reached an all time high in 2011 @ 61.50 in mid 2012 it went as low as 45, recovered and since mid 2014 it has been gradually been on the decline with a few highs.

[biotechpete]

The Conservatives sold off more public assets in 2015 than in any other year to date, according to new figures.

 

Over £26billion was raised for Government coffers through privatisation, largely thanks to the sale of Eurostar and Royal Mail.

 

Is this £26 billion included in the 2015-16 £533,686m tax receipts?

 

http://www.telegraph.co.uk/news/politics/georgeosborne/12126140/Government-sold-off-more-public-assets-than-ever-before-in-2015.html

 

Frankly I didn't even know Eurostar was a public asset. According to that article only 1.8 bn was raised from Eurostar and RM. The rest was basically bank shares. 11bn Lloyd shares it says.

 

Even then it's not exactly an example of how we're in the grip of greedy corporations.

[El Cid]

Frankly I didn't even know Eurostar was a public asset. According to that article only 1.8 bn was raised from Eurostar and RM. The rest was basically bank shares. 11bn Lloyd shares it says.

 

Even then it's not exactly an example of how we're in the grip of greedy corporations.

 

Us ordinary folk are not meant to know, but George Osborne knows. If two companies are worth £1.8 billion, I am sure they are paying dividends and will increase in value, as too will the £11 billion in bank shares.

 

Or maybe you don't understand the principles of share ownership?

[biotechpete]

Us ordinary folk are not meant to know, but George Osborne knows. If two companies are worth £1.8 billion, I am sure they are paying dividends and will increase in value, as too will the £11 billion in bank shares.

 

Or maybe you don't understand the principles of share ownership?

 

I understand the principle very well. But Eurostar and Royal Mail were not in essence profit making vehicles. Dividends were pifflingly small. It would have taken 100 years to get that amount of money from it.

 

The Lloyd shares were all sold at a profit to the taxpayer and given the sale price vs the current price, it's looking like a pretty good deal.