Interest rates

[superfrank]

The ECB raises rates to 1.5% with CPI at 2.7%; BoE does nothing with rates at 0.5% and CPI at 4.5%...
http://uk.reuters.com/article/2011/07/0 ... 1N20110707


Sir Mervyn King


Benny Hill

I've said it a thousand times, but the fact remains that the UK is toast if house prices fall. It's a Ponzi scheme which got out of control, which is why TPTB will do anything to prevent house prices adjusting. They will anyway (in real terms at the very least), it's just that they will take the whole economy with them now.

"You can't buck the market", Margaret Thatcher.

[Iron]

British Gas raises prices by 18pc - http://www.telegraph.co.uk/finance/pers ... -18pc.html

Nice one, Mervyn!

Jeff

The ECB raises rates to 1.5% with CPI at 2.7%; BoE does nothing with rates at 0.5% and CPI at 4.5%...

[Iron]

Bank has 'failed' over inflation: http://www.bbc.co.uk/news/business-14085513

There's an interesting graph showing the B of E's projected inflation figures vs the actual ones. The B of E are nothing if not optimistic!

Jeff

[Euler]

I saw this as well. I've put the graph in this post. This was one of the great bits of wisdom I learnt from Warren Buffett. The first time I met him I asked him about the 1974 crisis and he put me right about worrying about the future. You can't tell what's going to happen so don't base your decisions on it. Economists only role in life if to make weather men look good.

[superfrank]

That's true, but you didn't have to be Nostradamus to know that the BoE forecasts were wishful thinking with a tiny probability of coming true.

The thing is the BoE didn't believe them either, which is why a few years ago they switched their pensions funds into index-linked bonds.
http://ftalphaville.ft.com/blog/2009/03 ... inflation/

Complete rubbish to justify interest rates being held low to help with their real aim of supporting asset prices and eroding debt through inflation.

[superfrank]

In a previous job I helped to produce forecasts for mine production so that the company could predict how much it would have to sell in future years.

If our forecasts were even half as bad as the BoE's inflation forecasts, we'd have all been sacked.

Mervyn King gets a Knighthood.

[Iron]

Mervyn King has got his priorities right on the day when the fate of the Euro is being decided...

http://i.telegraph.co.uk/multimedia/arc ... 52244c.jpg

Jeff

Sir Mervyn King


Benny Hill

[Iron]

From http://labour-uncut.co.uk/2011/08/31/da ... rvyn-king/

"[Alaistair Darling] confirms how close the government came to not renewing King for a second term in 2008 – the first time a governor would have been sacked after just one term in nearly fifty years – before they ultimately opted for renewal when they couldn’t find a suitable alternative."

Jeff

Sir Mervyn King


Benny Hill

[superfrank]

From http://labour-uncut.co.uk/2011/08/31/da ... rvyn-king/

"[Alaistair Darling] confirms how close the government came to not renewing King for a second term in 2008 – the first time a governor would have been sacked after just one term in nearly fifty years – before they ultimately opted for renewal when they couldn’t find a suitable alternative."

Jeff

But knowing Labour the reasons for wanting him out would have been entirely the wrong ones - he wasn't economically recklessness enough for them.

Do you just enjoy republishing the Mystic Merv/Benny Hill pics?!

[Euler]

Andrew Sentance warns Bank of low interest rate risk

http://www.bbc.co.uk/news/business-14746328

[Euler]

Japan 10-Year Yield Drops to Record, Below Negative Deposit Rate

http://www.bloomberg.com/news/articles/ ... posit-rate

[Euler]

Negative Yields Seep Into Shell, Siemens Debt on ECB Distortions

http://www.bloomberg.com/news/articles/ ... ews-market