Post by R. Mark ClaytonSNIP
Post by JNugentPost by R. Mark ClaytonSo what else happened in those ten minutes - did WWIII start, UK swamped in a tsunami, asteroid strike - was there some other disaster just for this country that I somehow did not read about?
More serious of course is that over two years later the pound is even worse off.
How many times does this have to be said?
THE POUND WILL NEVER RECOVER WHILST THE UK OPERATES NEGATIVE INTEREST RATES.
How hard is that to understand?
Very hard, seeing how it had recovered quite a lot after the crash with 0.5% interest rates until the very moment the referendum result was announced, at which point it IMMEDIATELY fell 10% and then fell further and has still not recovered over two years later.
The pound has not been at its original (approximate) 1.5:1 against the
Euro since Brown's government abolished interest rates.
When was it last up at > 2:1 to the dollar?
Post by R. Mark ClaytonPost by JNugentPost by R. Mark ClaytonPost by JNugentPost by R. Mark ClaytonPost by JNugentIf only it could be.
It could, but probably won't be.
The decision is up to people who think like you.
The decision should be up to the people.
The decision as to whether to cintinue Project Fear is entirely up to
people like you.
After all, no-one else is taking part in it.
What you call project fear is group after group - hospital and ambulance managers only today, stating publicly that a hard Brexit will be a disaster for them. Conspiracy theorist Brextremists see this as an evil plot to derail their isolationist dream. Anyone with a shred of common sense knows it those who will be affected expressing genuine concern about what a mess it will be in April 2019...
Political axes being ground.
What it has to do with ambulance managers is anyone's guess. Do you have
to have a PhD in International Economics to work in the ambulance service?
Post by R. Mark ClaytonSNIP
Post by JNugentPost by R. Mark ClaytonPost by JNugentI agree that it isn't just social media.
It is the whole of that part of the media which supports the
left/liberal elite.
How odd, I went past WH Smith the other day and just about every newspaper was running pro Brexit stories - Times, Telegraph, Sun, Express, Mail...
Which part of "...that part of..." is too difficult for you to understand?
The word "whole" just before it.
You mean the phrase "the whole of that part"?
That is not just "the whole".
Do you always have such difficulty with English?
Surely there are might classes available to you?
Post by R. Mark ClaytonIME print media is strongly Brexit and has been for years. You are trying to imply the opposite, which is palpable nonsense.
The Grauniad? The Mirror? The Independent (yes, I know it doesn't
qualify as print any more)?
Post by R. Mark ClaytonPost by JNugentPost by R. Mark ClaytonPost by JNugentPost by R. Mark ClaytonPost by JNugentIn the meantime, the effects of the Remoaners' campaign against the UK
and against sterling could be removed overnoight by having the Treasury
regain control of MLR, getting rid of the MPC and getting our interest
rates back to normal. All overnight tonight, if possible. It would also
have a desirable effect on the housing market.
The housing market is badly inflated by the capitalisation of low interest rates. OTOH raising interest rates overnight to say the long term average (and typical 2.5% above inflation) of around 5% would cause severe dislocation in the housing market due to enforced or duress sales of people who could no longer pay their home loans.
There are *always* people whio have just taken ouyt a mortgage recently.
Are you saying that interest loans must kept negative (when inflation in
taken into account) permanently on order to accommodate them?
If you're not saying that, what *are* you saying?
I am that "All overnight tonight, if possible." would be lunacy and seriously dislocate the housing and financial markets and seriously damage the economy. A long term return to normal rates would be sensible.
"Long term" here has to mean a matter of months, and preferably weeks.
In the long term, as Keynes once said, we are all dead.
Any change in a timescale in which people and businesses would not be able to replan their finances would be disastrous for them and the economy. Overnight or even weeks would be folly.
...but it was pefectly acceptable (and even desirable) for savings to be
attenuated by inflation, that process starting immediately when rates
were cut and totally without notice?
Why do you favour one group over the other to that extent?
Post by R. Mark ClaytonPost by JNugentPost by R. Mark ClaytonPost by JNugentKnock on effects of mass bankruptcy and homelessness would cause
serious social disruption. Any medicine would need to be gradual.
Post by R. Mark ClaytonThen there would be the effect on industry and commerce...
No-one can expect negative interest rates to last.
Indeed. Things were returning to normal but the the BoE had to take even more extreme measures than the 2008 crash to prevent a loss of confidence resulting from the leave vote causing an immediate and deep recession.
If something can only be prevented by forcing the lending of money at a
loss, perhaps we shouldn't be seeking to prevent it.
Discuss.
Sure. The UK was about to emerge from the years of low interest rates, indeed would have probably already done so had some idiot not called a referendum. Given the result the economy was plunged back into an even bigger crisis of confidence. Still pretty bad now as our hapless government flounders its way through even trying to adopt a coherent negotiating position.
The UK economy will be in permanent crisis for as long as it costs you
money to hold sterling. We need positive interest rates (which means
rates which cancel out inflation and provide a real retiurn on top).
Post by R. Mark ClaytonWhy only yesterday: -
"Business leaders’ confidence in the economy has fallen to its lowest point so far this year as fears grow about the impact of a potential chaotic Brexit, according to a new survey published today.
The monthly Institute of Directors (IoD) tracker found 16pc more bosses on balance had a pessimistic view of the UK’s economic prospects compared to an optimistic outlook – the worst such result in 2018.
"
https://www.telegraph.co.uk/business/2018/08/19/pessimism-bosses-fear-brexit-economic-fallout/
Just keep pushing your head ever deeper into the sand.
Every complaint they have - except one - will be addressed by returning
to a sane interest policy.
Of course, no-one who is being loaned money at a loss to the lender
would want to see that ended any time sooon.