Chit Chat
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12 Feb 15
11:00
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Date Joined:
25 Jul 14
Be prepared for interest rates to go up...
Looks also like China is slowing so if they devalue
it could exasperate the situation..Could we be heading
for another crash?
Looks also like China is slowing so if they devalue
it could exasperate the situation..Could we be heading
for another crash?
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Replies: 30
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don't interest rates go down
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yep, interest rates would go down
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Not much room for going lower...they are low as it is
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Mark Carney has stated today that interest rates could be cut further
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Some of us have savings....we really have to take some crap
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If every time there a crash they bail out the bankers
and make the Savers and everyone else pay then expect more of the same,low investment low growth stagnant economies it just doesn't work. |
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What doesnt work is an economy based on millions of pointless jobs and ever increasing house prices.
Incidentally not bailing out the banks would make savers somewhat angrier. |
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Endless Credit wins
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Problem is give banks money and tell them to DE-leverage they aren't going to rush to lend money out.
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The last thing anyone needs is ever more borrowing. If savers think they have it bad now they will be in for a real shock in the coming years.
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Its debt that creates growth.
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Well we should be surging ahead given all the debt in this country.I wonder what has gone wrong.
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Europe is rapidly going to hell in a handcart. It simply cannot compete with the rest of the world on almost every front. Natural resources, no. Cost of production, no. Public spending v tax, no. Essentially, we're pinning all our hopes on the knowledge economy, but it won't be long before the well-educated are emigrating en masse.
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Dont worry all these media studies graduates and PPI claims companies will generate plenty of future growth.
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Deflation going to be a problem for a lot of forumites when they try out some Fifty Shades of Grey stuff on their girlfriends.
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Ask her to get down and "exasperate the situation".
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Oh, and deflation coupled with 0% interest rates is the one time in life when savers rule the world.
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Shame it will only last for a couple of weeks and even that will only be on official figures not the real world. Theres no chance the UK will experience any real deflation.
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Deflation means the volume of money in circulation is falling. So strictly speaking the price of money should rise in the same way as it does for any commodity when it becomes scarce - in other words interest rates should rise.
The government and Bank of England on the other hand are scared sh1tless by deflation, because wages fall in tandem and debts become more and more difficult to pay off. So they reduce the rate of interest at which they lend out "our" money, which is effectively money-printing in this environment. The best thing to be is a saver with cash under the mattress earning 0% and waiting to use it to buy assets like houses and land as their values fall. As wages fall alongside prices, people are no longer able to service the loans and mortgages which otherwise inflate the cost of housing etc. |
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Have you been shopping for food or basic clothing or filling up a vehicle in the last few months? When it comes to essential items, I see nothing but deflation.
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We know what deflation is. The point is its not going to occur in the UK. Even Carney has said its a very short term issue due solely to massive falls in oil prices. He has also said that rates will rise sooner than expected as the falling oil price will boost consumer spending and lead to Inflation in the medium term.
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You badly need to change your supermarket then.
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I dont disagree with you about certain foods or of course petrol but thats a long way from showing that we are suffering from deflation overall.
As for food I think a lot of basics have been cut in price and well publicized but theres plenty of items still going up or where the size of the packets has been reduced on the quiet. |
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I'd call it benefiting from deflation. The only people who "suffer" from deflation are people with large loans and mortgages and those who own large and/or multiple assets, e.g. landlords.
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Being 65
I have just topped up my Government +65 bonds (4% taxable) less investments at Crayford this afternoon |
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House prices will continue to soar while low interest rates hold
Sadly lost mine years ago.......hence my communist politics |
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Property still your best bet
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there's no benefit in saving unless you can use your savings to make money - inflation eats away and someone else will get the benefit
work fewer hours or spend the bugger |
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Property still your best bet
if you mean in the uk i couldn't think of a worse place to put it. if your talking spain then your talking sense. |