news & politics:discussion

[Guest]

24 minutes ago, gary1979666 said:

Exactly - that was my point.  

Ozanne is saying that the BoE's hikes have done nothing, but without them then inflation is likely to have risen.

I’m saying that raising interest rates to combat supply side driven inflation isn’t the right thing to do and only makes matters worse for people as we are seeing now with mortgages. They are choosing to make people poorer. 

[gary1979666]

16 minutes ago, Ozanne said:

I’m saying that raising interest rates to combat supply side driven inflation isn’t the right thing to do and only makes matters worse for people as we are seeing now with mortgages. They are choosing to make people poorer. 

So are you preferring higher inflation and lower interest rates? That doesn't necessarily make people richer. 

[lost]

Plus complaining about the BOE is old man shouts at cloud.

Mortgage rates are set by swap rates not the base rate hence the big moves we've seen outside of interest rate decisions.

[steviewevie]

I think consensus is inflation is bad and interest rates going up are bad (for some people, some people don't have a mortgage but have lots of savings...boomers!). The interest rate rises are going to make life hard for some people coming off their fixed term mortgages, but inflation is bad for everyone (except greedy bastard companies and their greedflation). Still, we could well see 10-30% knocked off house prices which overall is probably a good thing (apart from those who go into negative equity and need to sell). Like with a lot of this stuff, there are no easy answers. It's all pain, and it's bad news for a govt facing an election in 12-18 months (but doesn't exactly make life easy for Labour promises either).

[steviewevie]

38 minutes ago, gary1979666 said:

So are you preferring higher inflation and lower interest rates? That doesn't necessarily make people richer. 

I think Ozanne is saying that putting up interest rates is not so useful for bringing down inflation driven by external supply side stuff which is forecast to come down anyway, just makes people poorer when already going through a cost of living crisis, and also will likely push us into a recession. Kind of a perfect storm really.  

[lost]

5 minutes ago, steviewevie said:

I think Ozanne is saying that putting up interest rates is not so useful for bringing down inflation driven by external supply side stuff which is forecast to come down anyway, just makes people poorer when already going through a cost of living crisis, and also will likely push us into a recession. Kind of a perfect storm really.  

And as people keep telling him one way of reducing the cost of imported energy and food is to strengthen the pound with higher rates but he appears to have a mental block against that point.

[steviewevie]

8 minutes ago, lost said:

And as people keep telling him one way of reducing the cost of imported energy and food is to strengthen the pound with higher rates but he appears to have a mental block against that point.

that doesn't always happen though, right?

[lost]

Just now, steviewevie said:

that doesn't always happen though, right?

Watch what a currency does when a central bank "surprises the markets"

[steviewevie]

[steviewevie]

22 minutes ago, lost said:

Watch what a currency does when a central bank "surprises the markets"

The main reason that they raise rates to curb inflation is so people spend less, right? It isn't usually because they hope it will raise the value of the pound...

[lost]

1 minute ago, steviewevie said:

The main reason that they raise rates to curb inflation is so people spend less, right? It isn't usually because they hope it will raise the value of the pound...

Its both. A net importer needs to prop up the currency. Somewhere like Japan not so much.

Look at Turkey. Erdogan decided high interest rates were "anti-islamic" and ordered the central bank to cut. I think 1 dollar bought 8 Turkish lira last year, its now 24. He's tripled the cost of energy and imported food before you take the inflation from less oil or gas being exported from Russia.

[steviewevie]

18 minutes ago, lost said:

Its both. A net importer needs to prop up the currency. Somewhere like Japan not so much.

Look at Turkey. Erdogan decided high interest rates were "anti-islamic" and ordered the central bank to cut. I think 1 dollar bought 8 Turkish lira last year, its now 24. He's tripled the cost of energy and imported food before you take the inflation from less oil or gas being exported from Russia.

yeah, and then won an election. Take note rishi.

[Guest]

2 hours ago, gary1979666 said:

So are you preferring higher inflation and lower interest rates? That doesn't necessarily make people richer. 

I’m saying that raising interest rates won’t help, it’s just making people worse off. They should keep interest rates low so people have more money to put back into the economy.

The BoE are making the situation worse. 

[Guest]

1 hour ago, steviewevie said:

I think Ozanne is saying that putting up interest rates is not so useful for bringing down inflation driven by external supply side stuff which is forecast to come down anyway, just makes people poorer when already going through a cost of living crisis, and also will likely push us into a recession. Kind of a perfect storm really.  

Yes that is what I’m saying, they are enforcing a recession on an already struggling society. 

[steviewevie]

I think we have reached an impasse.

[steviewevie]

Still, HAPPY BIRTHDAY BORIS!

[steviewevie]

meanwhile

 

[steviewevie]

47 minutes ago, lost said:

Its both. A net importer needs to prop up the currency. Somewhere like Japan not so much.

Look at Turkey. Erdogan decided high interest rates were "anti-islamic" and ordered the central bank to cut. I think 1 dollar bought 8 Turkish lira last year, its now 24. He's tripled the cost of energy and imported food before you take the inflation from less oil or gas being exported from Russia.

looks like he's gone secular

 

[fraybentos1]

30 minutes ago, Ozanne said:

Yes that is what I’m saying, they are enforcing a recession on an already struggling society. 

It’s like speaking to a brick wall. A recession might be necessary to bring down inflation. A recession is better than years of 10 percent inflation 

[steviewevie]

 

[steviewevie]

Bring Back Theresa

 

[steviewevie]

I'm sure this will go down well with the twittertwat corbynfans it was all a scam crew...

 

[steviewevie]

at least china and usa are besties again.

[steviewevie]

 

[Crazyfool01]

Awful turnout for this debate … appalling from the Tory benches