Bank of England Madness

[El Cid]

It's interest rates you're complaining about. They've been lowered to stimulate the economy that is being hammered by the vote to brexit.

 

There can't be some sort of magic reward to savers, they don't want you to save, they want you to spend.

 

And to keep house prices high, if interest rates are low, people with money need to keep it somewhere.

[I1L2T3]

.......little to do with Brexit! interest rates have been historically low for years!......Brexit is only a fly in the ointment of what is really going on in the worlds economy!

 

This is very true

 

But it does highlight the recklessness of holiding a referendum. Cameron and Osborne must have belived their own lives about the economy being fixed

[tinfoilhat]

This is very true

 

But it does highlight the recklessness of holiding a referendum. Cameron and Osborne must have belived their own lives about the economy being fixed

 

And they also didn't think they'd lose the referendum either. QE is an awful option, but the best there is, certainly the best any politician will go for. The global economy needs a reset but the cost of that here would be huge job losses - in other countries revolution and/or war so you why they aren't keen.

[Solomon1]

The Bank of England looks like continuing it's policy of reducing interest rates and more quantitive easing.

Definition of Madness.

Someone who does same thing over and over again expecting a different result.

 

I so totally agree

 

They should just give us all a thousand quid each instead!

[tinfoilhat]

I so totally agree

 

They should just give us all a thousand quid each instead!

 

They did that in austrailia in 2009 if memory serves - $900 Aussie dollars - 50 quid in real money http://www.telegraph.co.uk/finance/recession/5341306/Australians-get-900-cheques-from-government-to-boost-spending.html

[Beauchiefs]

if it's a bad long term plan, then it seems to be one that every central bank shares... Japan, europe, the us... Are they all getting it wrong?

 

 

yes there is no evidence it works

[I1L2T3]

And they also didn't think they'd lose the referendum either. QE is an awful option, but the best there is, certainly the best any politician will go for. The global economy needs a reset but the cost of that here would be huge job losses - in other countries revolution and/or war so you why they aren't keen.

 

QE is for one thing and one thing only: life support for the banking system. The Cameron governments benefited repeatedly from it for years.

 

It's a reasonable option given the circumstances but not many people really seem to understand that QE is abnormal but without it things will get much worse.

 

It's time to get cracking with infrastructure improvements. Real stuff that can be delievered incrementally and quickly: housing, broadband rollout, regional strategic rail (not London-centric crap like HS2)

[Beauchiefs]

and to keep house prices high, if interest rates are low, people with money need to keep it somewhere.

yes they want you to spend and borrow more. Madness

[I1L2T3]

yes they want you to spend and borrow more. Madness

 

A cornerstone of Osborne's startegy was debt transference to households. It was households that were to take on the debt to drive forward the economy relieving the government of the need for fiscal stimulus. He failed miserably. Not only did households take on record levels of debt but we have record national debt and had many rounds of QE.

 

It's a complete mess.

[tinfoilhat]

QE is for one thing and one thing only: life support for the banking system. The Cameron governments benefited repeatedly from it for years.

 

It's a reasonable option given the circumstances but not many people really seem to understand that QE is abnormal but without it things will get much worse.

 

It's time to get cracking with infrastructure improvements. Real stuff that can be delievered incrementally and quickly: housing, broadband rollout, regional strategic rail (not London-centric crap like HS2)

 

There's some of it going on - I never realised two sections of the A1(m) were getting joined up into one long motorway around catterick. Roads need massive investment but at what environmental cost? The south east needs another orbital motorway to release pressure on the perpetual car park that is the M25. We might need two if they decide to remove around a quarter of it to expand Heathrow.

 

Housing - we need more affordable housing, but that's just going to attract more people so then we need more housing, more roads, more schools, more hospitals, more power stations (as iffy as Hinckley is, it's not like it's not needed) etc etc. It's never ending.